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 : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (5719)	12/10/2002 3:39:29 PM
From: GraceZ	Read Replies (1) \| Respond to of 24758

Why do you assume that interfering with the equities market directly is necessary to fit the definition of influencing the market? The discussion, if you've followed it from the beginning, was about whether or not the Fed interfered in the equities markets by directly buying or selling of equities or index futures in their operations. They do not, they operate in the debt markets. It's been stated many times here on this thread that the loose monetary policy in the late 90s had the unintended consequence of feeding the equity asset bubble. And since the FOMC does operate through banks and brokerages that are assigned as primary dealers by the FRB, doesn't it make sense that these activities can have a secondary result that effects the equities market in what appears to be a concerted effort? So is it your contention that the member banks conspired with the Fed to bring asset prices down in the last two years? That's a pretty serious allegation.

To: Jorj X Mckie who wrote (5719)	12/10/2002 3:58:36 PM
From: Ahda	Read Replies (1) \| Respond to of 24758

Jori the best way i can explain why it would be utterly insane to prop up that which was attempting to find a true value. This would be by increasing the valuation of any entity you put pressure not only on that stock but you are adding to inflation conditions of the economy by propping up that which is attempting to find a fair level of value. The FED is not insane and is having enough trouble with use of rates and dollars to increase the economic out put never mind adding inflation to the economy by artificially propping up stocks. If you did so theoretically you would reduce cost efficiency for the corporation as well as the future potential for the economy.

To: Jorj X Mckie who wrote (5719)	12/10/2002 4:16:39 PM
From: ahhaha	Read Replies (2) \| Respond to of 24758

I believe that the fed money policy was instrumental in the creation of the late 90s bubble. FED can only create reserves and thereby provide fuel for what people do. They can't push on a string. They can't create prosperity. They can't do anything that you think they can do. More directly, I believe that there was a causal relationship between the fed money policy and equity prices, whether intended or unintended. If FED policy is correct, the policy will achieve stable prices. Then the natural proclivity of people will take over and cause an expansion of business with attendant increase in profits and stock prices. FED didn't intend necessarily that stock prices would rise, but it did intend that sound economy was in place. In the past several years, Greenspan has made several direct statements regarding the equity markets. Yes. He said they were inflated with irrational exuberance. No one listened. So how is it that FED affected the stock market? This indicates to me that you understand that the Fed can influence the direction of the equity market. FED can influence the stock market by reducing inflation to zero. FED hasn't chosen to do that. Therefore, FED undermines the stock market. And since the FOMC does operate through banks and brokerages that are assigned as primary dealers by the FRB, doesn't it make sense that these activities can have a secondary result that effects the equities market in what appears to be a concerted effort? You don't know what you're talking about. Why don't you learn the mechanism before you show how stupid you are. You sound like the lunatic Yahoo 'Bugs who are still pushing GATA. Do you think that that secondary effect on the equity market is ever intended by the FRB? FED would love to see stock prices rise. Wouldn't you? Therefore you must be able to affect stock prices. Surprisingly, anyone who buys and sells does. So what? This third grade crap of your's better end toot sweet, or you're going back into the penalty box.