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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (68578)	10/3/1999 10:22:00 AM
From: Freedom Fighter	Read Replies (3) \| Respond to of 132070

Les, We know that markets are blatantly manipulated in Asia. They admit it. According to one report I read, Hong Kong developed a futures buy program designed to support stock prices with the help of a top US investment bank. So it's certainly possible markets are manipulated elsewhere. There is even at least some suspicion among US professionals about activity in the futures market in the U.S. too. I know I have seen at least 3 days in the last 2 years where the market was in a full scale panic but was met by a spectacular buy program that rescued it. I personally find it hard to believe that with valuations higher than they have ever been in history, bullish or not, new era believer or not, that someone would come in at the height of panic because they thought is was a good deal. People come in like that and throw themselves into to the fire when the prices are a screaming bargain. Not when prices drop from 35 times earnings to 30 times earnings. If markets are being manipulated by either pools of private investors, government intervention, or private party/government deals there are many implications. It's not in the long term economic interests of the country because money is not being allocated properly. It's a clear cut wealth transfer mechanism from the non-inside public to the manipulators. (This makes my blood boil.) It could be demonstrating that the overvaluation, leverage, and financial system exposure through derivatives are now so huge that there are fears that without manipulation the financial system could collapse. It could be demonstrating how corrupt our institutions have become. Wayne