Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: UnBelievable who wrote (36058)	4/11/2002 12:16:16 AM
From: NOW	Read Replies (1) \| Respond to of 209892

UB: W.Duisenberg's comments here seem a forthright admission that this has been happening: "On Bundesbank plans to swap some gold reserves for equity: ``To buy equity is for many central banks not unusual.'' " quote.bloomberg.com.

To: UnBelievable who wrote (36058)	4/11/2002 12:31:20 AM
From: Susan G	Read Replies (1) \| Respond to of 209892

That explains the lack of the normal liquidity pump this am... This is from last week... U.S. Taps Government Pension Funds to Avoid Hitting Debt Limit quote.bloomberg.com

To: UnBelievable who wrote (36058)	4/11/2002 8:02:11 AM
From: Hawkmoon	Read Replies (2) \| Respond to of 209892

The timing of this major market manipulation should be investigated by Congress. On the first day following a breakdown in the market indices, our government chose to push big money into equities to avert a market collapse. Well, that might be a tough case to make. After all, if I understand the government pension program correctly such as the TSP, it is the participants who choose what fund they wish to participate in. Thus, managers have to allocate funds appropriately to reflect the diversification desired by them. But activities of the "plunge protection team" might be worth some scrutiny. However, we have Japan ACTIVELY buying the Nikkei stocks, claiming they are assisting the divestment of corporate cross-holdings, so globally we're seeing a trend to government intervention into markets, which is not a preferable solution to market jitters. I'm far more worried when the government starts using taxpayer money to support markets than instances of "timing" with regard to investment decisions using pension funds. Hawk

To: UnBelievable who wrote (36058)	4/11/2002 10:12:09 AM
From: Paul Shread	Read Replies (1) \| Respond to of 209892

I emailed Hahn's comments to a guy who knows arbitrage/futures as well as anyone, and this was his response: Hahn's corner has a valid point, but there was a tremendous amount of activity all day above "fair value" in all of the equity index futures. ... If the Government used un-hedged "program trades," not "arbitrage trades," to push the market, it is a serious escalation and a sign of panic. At 7:00 NY time the Dow futures are 10,362 or about 28 points below "fair value." If the futures do not rally before or at the opening in New York, and the market still rallies substantially on "program trades" throughout the day, the government may actually be buying un-hedged positions. Rubin may have been one of the innovators of the use of "arbitrage trades" when he worked for the Government. FYI (my comments) - this same guy estimates current fair value on Dow arbitrage/futures positions at about 10,390, so the desire to get back to that level also no doubt played a role in futures trades yesterday. Once they got em above fair value they kept it there to drive it higher.