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-   -   Do you think there's direct manipulation in the stock market? (http://www.elitetrader.com/vb/showthread.php?t=241919)

flipside21 May 3rd, 2012 11:54 PM

Do you think there's direct manipulation in the stock market?
 
Quote:

Quote from ammo:

game is so controlled now that the fed,banks, gs,jpm, can team up and just move the market against the whales..they know everyone's exact position..playing poker where the biggest guy can see your cards......whats the word ..they broke up att for it
What does everyone think? Is there direct manipulation in the stock market?

BSAM May 4th, 2012 12:15 AM

Uh...Is this a trick question?

flipside21 May 4th, 2012 01:34 AM

Quote:

Quote from BSAM:

Uh...Is this a trick question?
Direct manipulation would be direct purchases of stocks or futures by the Fed or related entities.

Indirect manipulation would be something like QE policies where bonds are bought from primary dealers and the primary dealers may (but not necessarily) use this money to buy stocks. Operation twist is also an indirect manipulation by lowering long-term interest rates and drive liquid asset prices higher. So, indirect manipulation is more policies aimed at encouraging lifting of stock prices, whereas direct manipulation would be for the Fed to buy stocks directly and stuff it onto its balance sheet. The present Fed balance sheet consists of mortgage and US Treasury bonds rather than stocks.

RedTankEra May 4th, 2012 02:04 AM

Absolutely, the big guys scaring the little guys, happens all the time.

ReaM May 4th, 2012 02:15 AM

No,

there is no manipulation. Big Boys don't even have to manipulate anything. Average Hedge Fund loses money. Customer's money, but each time they are in plus for the year they would chop off profits. Plus the management fee.

The way big institutions are structured, they don't even have to make money to make money.

mokwit May 4th, 2012 03:55 AM

SEC stamped out that sort of thing years ago. Happened in the '20's they say (before the SEC).

Of course conspiracists claim it still goes on every time someone buys index options before a Fed rate cut or a briefing for GS clients by Hank Paulson - that's the tin foil hat brigade for you.


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