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 : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (57053)	2/17/2015 11:20:01 AM
From: Real Man	2 Recommendations Recommended By bull_dozer Pogeu Mahone Respond to of 71402

No, the Fed supports the markets by injecting money (liquidity) every time the market crashes, or by being the lender and derivatives dealer of last resort. This creates a distinct profit to one buying every dip and a policy of serial bubbles, as excesses only get bigger.

To: Tommaso who wrote (57053)	2/17/2015 11:22:44 AM
From: bruiser98	1 Recommendation Recommended By ggersh Respond to of 71402

Comments Jesse has made about the Exchange Stabilization Fund: >>>As you may recall, in the 1990's Robert Rubin established that one could pump up the market most efficiently by buying the SP futures, and in a sense forcing all the index followers and funds to buy stocks to keep up with that trend. It has been used any number of times, and I suspect is still in the back pocket of the Exchange Stabilization Fund, aka 'The Plunge Protection Team,' as a tool for 'saving the markets.' As Rubin's dictum went, it was cheaper to pump up stocks in a falling market, rather than coming in after the fact and repairing the post bubble damage with a genuinely productive effort, or even a bail out.<<<< jessescrossroadscafe.blogspot.com >>>I should add here that if the equity market does not respond sufficiently on the announcement, we may see the entry of the Exchange Stabilization Fund and its house banks, either into the close or tomorrow. They tend to do this to reinforce some Fed action if the market does not respond on its own. This is view as benign, similar to jawboning, the 'management of perception.'<<<< jessescrossroadscafe.blogspot.com >>>But the Plunge Protection Team, tapping any needed money from the Exchange Stabilization Fund, started buying the SP futures, and continued to do so at a couple of key points in the day, and particularly into the close, with some wild price swings. The SP futures dropped almost 10 into the close off that late day buying pump.<<<< jessescrossroadscafe.blogspot.com