Posted on 10/30/2014 1:19:32 AM PDT by dennisw
The stock market is rigged and anyone who has a few smarts knows it.
You have about 1 year (+-) to prepare for the Fed interest rate rise. That is when things will get tough and the major problems will start.
That 17 trillion tab we’ve been amassing will have to be paid back with higher interest rates.
It’ll be about 20 trillion by next year with our bombing of ISIS, added healthcare costs, and maybe an attack or two.
If you haven’t prepared you’d better start now. When the debt comes due, and taxes go up to cover the expense, the rebellion will start.
I certainly believe that the $75 to $85 Billion dollars a month the Fed has been printing up for the last 6 years to buy treasury notes and Mortgage Backed Securities has been like crack to the NYSE. It is going to be interesting to see what happens when they have to go cold turkey.
Well Yellen announced last night that is exactly what she is doing NOW.
There are some Wall Street sphincters pinching a few seat covers, I’d expect.
Not so much fixed; but rather, "key players" have the advantage over the average joe, much like a card counter at the blackjack table. The key players, like card counters, can lose like the rest of us, but the odds of winning are skewed in thier favor.
Doubtful. I wonder how old the author is?
The author has been at the NY Post since the early 1990s. There have been accusations that the Fed works with a certain HF trader to move the SP index up and down when it is warranted. Via SP futures
I don’t doubt there’s manipulation. Only that it started after 1987, if it started under Reagan.
But this is just one more of “the levers of a managed economy”. Read, “I Pencil.”
Plunge Protection Team (PPT) Definition | Investopedia
www.investopedia.com/terms/p/plunge-protection-team.asp
Investopedia
The Plunge Protection Team was created to make financial and economic recommendations to ... The team was created in response to the 1987 market crash.
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Exactly.
“I certainly believe that the $75 to $85 Billion dollars a month the Fed has been printing up for the last 6 years to buy treasury notes and Mortgage Backed Securities has been like crack to the NYSE. It is going to be interesting to see what happens when they have to go cold turkey.”
Cold Turkey! Are you predicting a post Thanksgiving demise?
I totally agree with your comment. I’m amazed with the manipulation that has occurred ever since Clinton changed the computation of the Cost of Living Index in 1992 and played all the games with gold futures and the currency stabilization fund.
I did not foresee the ability to keep the balloon inflated by fooling all of the people all of the time. If the senior citizens ever found out that their Social Security benefits would be double what they are today if Slick Willie had not cheated them by changing the benefit increase computation, they would be furious.
I’m mostly retired and I shop nearly every day for the best grocery deals I can get (1 mile away). It doesn’t take a rocket scientist to see that a lot of the basic staples cost a lot more than they used to. I’ve seen milk, hamburger, bacon and other common foods higher than a gallon of gas for quite a while now.
I also see diversions that producers have gone to make the shopper they aren’t paying more (e.g., bacon used to nearly always packaged in 1lb packs - I’m seeing more and more 12 ounce packs with prices that used to be 1lb rates - that goes for same sized bags and boxes, but with less food in them).
Yet, somehow, none of this ever works its way into government’s assessment of how things are going.
>> the CME Group, the exchange in Chicago, has an incentive program under which foreign central banks could buy stock market derivatives like the S&P contracts at a discount.
Now please close the loop and explain exactly how buying *derivatives* “props up” the market.
I’ll wait patiently.
There’s about a quadrillion dollars worth of credit derivatives which are basically a form of insurance against these kinds of losses. When the world economy crashes hard who will pay for them?
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