The U.S. Government Buying Stocks

[william the wie]

like shills in a casino.
I remember years ago when I worked in a casino as a slot mechanic and they had shills on the dollar machines they played with the house money and made like 6 dollars an hour.
Used them to draw in the suckers.

It's still happening in the financial markets but just like in Vegas it only works when the suckers have money.

 

[mayya555]

If this is truth, this would be outrageous. Is America really falling on knees?

 

[KissMy]

CNBC panel -on Plunge protection Team & Markets [ame="http://www.youtube.com/watch?v=8WlRKx469X4"]I Believe in the PPT[/ame] [ame="http://www.youtube.com/watch?v=Jt1JRQyspR4"]PPT[/ame] [ame="http://www.youtube.com/watch?v=muFred6WzTY"]Plunge Protection Team[/ame] [ame="http://www.youtube.com/watch?v=hY3sUd16_iE"]Charts[/ame]

 

[Toro]

For those who still think the government is actually in there buying up shares and selling them I have just two questions for you:

1. If they are actually doing this then why did they let the market collapse in 2008?
2. Why would they do such a thing when they have banks that can do it for them?

As for the first question – if the government is directly propping up the markets they sure are bad at it. Don’t you think that Dick Cheney, a bona fide market guru would have done everything in his power to prop up the markets using the PPT before the Republicans went down in flames on the back of the economy? We declined 60% in 12 months and remain almost 30% below the all-time highs. By any measure, I would say the so-called PPT is failing at their job.

THE PRAGMATIC CAPITALIST DOES THE GOVERNMENT MANIPULATE STOCK PRICES?

 

[Paulie]

For those who still think the government is actually in there buying up shares and selling them I have just two questions for you:

1. If they are actually doing this then why did they let the market collapse in 2008?
2. Why would they do such a thing when they have banks that can do it for them?

As for the first question – if the government is directly propping up the markets they sure are bad at it. Don’t you think that Dick Cheney, a bona fide market guru would have done everything in his power to prop up the markets using the PPT before the Republicans went down in flames on the back of the economy? We declined 60% in 12 months and remain almost 30% below the all-time highs. By any measure, I would say the so-called PPT is failing at their job.

THE PRAGMATIC CAPITALIST DOES THE GOVERNMENT MANIPULATE STOCK PRICES?

The writing was on the wall with the banks though. How could you have propped up the market in the face of the world's biggest banks on the tipping point of collapse?

Balance sheets were unprecedented. I really don't think the government would swoop in and prop up indices when the only logical situation for the market was a crash. And where would the BANKS have gotten the capital to do it when the largest in the world were facing imminent collapse?

But who's to say they didn't put a FLOOR under the crash at the March '09 bottom?

Just a thought. I don't have any opinion either way about the PPT, but if I was forced to make a decision I'd probably say I don't put ANYTHING past the government.

 

[RodISHI]

If this is truth, this would be outrageous. Is America really falling on knees?

A portion is on their knees. There is still a good portion running with the pride brigade.

 

[jjreview]

I have no doubt in my mind that the PPT exists.

There's no way the government doesn't have something like this to rely on. Everyone has pretty much already come to realize that the banks and the government are each other's best friend. Of COURSE they work together within the markets.

I remember when Ron Paul asked McCain about this in a primary debate, and McCain TOTALLY side-stepped the question and ended up looking like a retard.

It kind of sounds like pump-and-dump, only a version that lets rich bankers get their money out before freefall.

 

[mayya555]

If this is truth, this would be outrageous. Is America really falling on knees?

A portion is on their knees. There is still a good portion running with the pride brigade.

Who already did fall do you think?

 

[KissMy]

Times Online September 29, 2008 - Central banks pump in $620bn as shares plummet

Central banks around the world unveiled a plan to pump massive amounts of cash into the global banking system in a concerted effort to boost market confidence and inject liquidity into the global markets.

The move followed a fall in the Dow Jones of nearly 300 points in morning trade to 10,869 as the market took fright at several bank nationalisations in Europe and the US despite the approval of the "son of Tarp" — the Troubled Asset Relief Programme —bailout. The FTSE 100 index of leading shares was down almost 5 per cent, taking it to a new low for the year and below the psychologically significant threshold of 5,000.

 

[Toro]

Times Online September 29, 2008 - Central banks pump in $620bn as shares plummet

Central banks around the world unveiled a plan to pump massive amounts of cash into the global banking system in a concerted effort to boost market confidence and inject liquidity into the global markets.

The move followed a fall in the Dow Jones of nearly 300 points in morning trade to 10,869 as the market took fright at several bank nationalisations in Europe and the US despite the approval of the "son of Tarp" — the Troubled Asset Relief Programme —bailout. The FTSE 100 index of leading shares was down almost 5 per cent, taking it to a new low for the year and below the psychologically significant threshold of 5,000.

Right, that confirms the argument in the link of my post here.

 

[KissMy]

Trump administration's 'Plunge Protection Team' convened amid Wall Street rout: Nothing like Big Government backing banks to buy stocks. What could possibly go wrong if this continues? Trump pushed stocks up 47% & Gold is up 41%. Massive fiat money creation is afoot.

 

[Picaro]

Banks have buying up gold for years, no secret, and so have such schemes as BRICS and all the other rubbish that was supposed to 'crash the dollar and kill off American n stuff'. Now the U.S. paper is a major refuge for overseas investors and financial institutions. Trump has little to do wit it; countries like Red China are facing major downward currency evaluations, and gold is a hedge, as are other commodities.

TDS is a real mental illness. Seek professional help.

 

[KissMy]

The chance of abusing this presidential mandate – even for personal gain – is great whenever an organization operates in secrecy. And that’s exactly how The President’s Working Group is operating.

NY Post: THE TREASURY’S MISSING MINUTES MYSTERY

Starting in June of 2006 The Post asked for an accounting of the actions of The President’s Working Group, which was formed under President Reagan. The Group seems to have the ill-defined task of keeping an eye on the financial markets. We also asked for e-mails related to our request through the Freedom of Information Act (FOIA).

The Working Group operates out of the Treasury Department and includes the heads of the various exchanges in the US, as well as top-ranking government officials. Hank Paulson, the Treasury Secretary, and Ben Bernanke, the head of the Federal Reserve, are the two most prominent members. Back in August, Paulson said in a television interview that “we’ve re-energized The President’s Working Group on Financial Markets.” The Wall Street Journal last year said that Paulson, upon becoming Treasury Secretary, was insisting that the Working Group meet every six weeks.

Whatever the schedule of meetings, one of those meetings occurred on Aug. 17 – the day the Federal Reserve surprised the financial markets with a cut in its discount rate. According to records that someone else got from Bernanke’s office through a FOIA request, there was an 11 a.m. conference call on Aug. 17 of the “PWG” – the President’s Working Group. Fed Governor Kevin Warsh and Patrick Parkinson, a Treasury staffer, took part in that call, according to Bernanke’s phone log.

The day before – Aug. 16 – Bernanke and Paulson had lunch, but it isn’t clear whether this was just two guys having a meal or if it, too, was related to The President’s Working Group. Hours after that lunch, word got around on Wall Street that the Fed was about to make a move and the stock market staged a tremendous rally....

But who decides when a rescue is needed? And if no records are kept, who is held accountable if The Working Group’s power is abused?

George Stephanopoulos, a former top aide to President Clinton, tried to calm fears right after the terrorist attack in 2001 by explaining that The President’s Working Group was at the ready to prop up the stock market.

I, too, had a similar conversation with a Fed official in Sept. 2001. But the chance of abusing this presidential mandate – even for personal gain – is great whenever an organization operates in secrecy. And that’s exactly how The President’s Working Group is operating.

Former Fed board member Robert Heller opined in the Wall Street Journal in 1989, “Instead of flooding the entire economy with liquidity, and thereby increasing the danger of inflation, the Fed could support the stock market directly by buying market averages in the futures market, thereby stabilizing the market as a whole.” In a Financial Times article in 2002, an unidentified Fed official was quoted as acknowledging that policymakers had considered buying U.S. equities directly, not just futures. The official mentioned that the Fed could “theoretically buy anything to pump money into the system.”