Posted on 01/06/2010 7:30:13 AM PST by george76
Analysts say government's financial rescues have fueled conspiracy theories.
The unusual circumstances that led the U.S. market to rally powerfully in 2009 might be explained by secret government moves to buy stocks, according to Charles Biderman, the founder and chief executive of TrimTabs, a research firm that tracks liquidity flows in the market.
"We cannot identify the source of the new money that pushed stock prices up so far so fast," Biderman said .
The source of approximately $600 billion net new cash necessary to lift the market's overall capitalization by $6 trillion last year could not be identified by TrimTabs, Biderman said. The money, he said, didn't come from traditional players such as companies, retail investors, foreign investors, hedge funds or pension funds.
"We know that the U.S. government has spent hundreds of billions of dollars to support the auto industry, the housing market, and the banks and brokers. Why not support the stock market as well?"
The Federal Reserve or the Treasury, Biderman said, could have easily manipulated the stock market by purchasing $60 to $70 billion worth of futures of the S&P 500 Index on a monthly basis.
Conspiracy theories about the so-called "plunge protection team," or PPT, have been on the rise...
(Excerpt) Read more at marketwatch.com ...
speculation along these lines has been around for a while. The premise, given the known actions of the feds in other areas, is hard to simply dismiss out of hand.
What a shock.
And that would fit right in with the man made hysteria over mortgages that broke at exactly the right time to save the uhhbama canidency. Remember that? He was 10 points behind when that broke. And what has “CHANGED” since then? ALL the toxic assets are still on the books, but the hysteria has disappeared and the market acts like happy days are here again.
We cannot identify the source of the new money however the ink is still wet.
Ya’ think? There has never been a greater disconnect between what the market is saying and what the citizens are experiencing.
Wasn’t there a huge run (purportedly) by Soros on money market funds that forced the bailout?
Well, that would explain all those imaginary districts and zip codes that received billions in stimulus money.
Ya’ think? There has never been a greater disconnect between what the market is saying and what the citizens are experiencing.
There is certainly something fishy going down, and has for a while. At one time I thought it came from the private investment sector, but with the criminals now in charge all bets are off.
Just look at what removing GM from the Dow did for it. The Dow “looks” better immediately, yet the reality on the ground of displaced GM workers and their suppliers is something quite different. The socialist parasites are looking for a way to offload their retirement pension/medical benefits on to the average taxpayer making us equally poor. All the GM worker has to do when their taxpayer subsidized unemployment money runs out, is adjust to their newly orchestrated socialist existence with tremendous end-of-your-life medical coverage.
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