Is the Fed Outright Buying Stocks/Futures to Prop Up the Markets?

Zero Hedge ^ | 07 June 2016 | Phoenix Capital

[SunkenCiv]

In short, no.

[VTenigma]

Scary stuff, but yes I believe we are being manipulated.

[billyboy15]

Amazingly you seem unaware of the Plunge Protection Team.

This has been going on the 1987 crash.

[SkyPilot]

The question is not "if." It is a true fact that the Fed is propping up the market, and has been doing so for a very long time.

The real question is: "How long can they get away with it and prevent the massive crash that has been long predicted?"

The markets have defied logic, reason, sanity, and the economic fundamentals for some time now.

This crash will be historic, epic, and painful.

The Elites are setting themselves up for one more big "profit" push. Many others are planning to short the market. But that has many risks.

This no price discovery, and there certainly has not been one in the market for years.

There will be blood on the walls when it all blows.

[bigdaddy45]

So are you all cash at this point?

[Buckeye McFrog]

It’s all a game of Three Card Monte.

And every player on the globe has too much skin in the game to let it end. They know if the music stops they aren’t all getting a chair.

So look for the deceptions to continue indefinitely.

[areukiddingme1]

I suspect it has something to do with Oblahblah’s legacy — They are trying to hurry up and get him out of office before the whole farce crumbles down.

[G Larry]

No, its me.

I keep chasing stocks that ran away from my initial buy price.....

[G Larry]

LOL!

He said “SHORT” while commenting on rising stock prices!

[moovova]

The DOW’s up 39.75 points.

Everything’s A-OK.

Now, go back to the Springer Show

[RoosterRedux]

No.

Here's a link to the Fed's balance sheet as of June 2, 2016. See if you see any equities...

Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks

[DH]

This has been going on the 1987 crash.

---

“Fool me once...shame on you! Fool me twice...shame on me!”

Yes, many of us learned about the PPT back in 87 the hard way. However I learned the lesson “those who don’t know history are doomed to repeat it.”

And.......here it her again right along with the PPT.

[Starboard]

Its inconceivable to me that they are not manipulating the market. The government manipulates, controls or regulates everything else so it would be a lone exception for them to not want to manipulate stocks.

In my opinion the Plunge Protection Team may have started out to deal with crisis situations to prevent market meltdowns. However, this concept became a slippery slope and over time it morphed into manipulating markets for political reasons.

Like a lot of other forms of manipulation, those who do it convince themselves its the right thing to do and refuse to acknowledge the insidious unwanted side effects and perversions of original intent.

[justa-hairyape]

Does a bear still poop in the woods ? Did the Pope used to be Catholic ? Is the US President lying ? Apparently another one of the unsolved mysteries of the universe. We have added l0 trillion in debt in 10 years. Anyone see a trillion of new infrastructure any where ?

[rdcbn]

The Elites are setting themselves up for one more big “profit” push. Many others are planning to short the market. But that has many risks.

This no price discovery, and there certainly has not been one in the market for years.

There will be blood on the walls when it all blows.

---

Not for the well connected cronies

They have made huge money under Obama .

Having effectively destroyed the currency system, they are liquidating for the next crash while the market is propped up for them.

The ensuing crash will be the biggest buying opportunity in the history of the world and those with cash will buy up assets on pennies on the dollar.

The scum bags who screwed up the system and made out like bandits in the process will proceed to convert their liquid cash to buying up the nations assets at fire sale prices.

If this happens say hi to your new masters and welcome to serfdom.

Don't know if it will work or not, but they are going to try.

Maybe Trump will fight back against such an act of economic warfare but Obama or any Democrat (or Republican) sure won't

[pgyanke]

Exactly. The Fed is propping up the debt markets. That is what QE is all about. If we have a failed Treasury auction, all hell will break loose. The bond markets dwarf the equity markets by many multiples. The stock market is only a secondary beneficiary.

[TruthInThoughtWordAndDeed]

Is a bear Catholic? Does the Pope poop in the woods?

/s

[justa-hairyape]

Wrong balance sheets. The feds are not stupid enough to be holding over valued securities. And the Banks they loaned the money too have no choice. They were given an offer they could not refuse.

[Starboard]

This no price discovery, and there certainly has not been one in the market for years.

***********

The Fed has caused gross economic distortions that will have repercussions for years to come.