As proposed by President Bush Read about it here: http://www.msnbc.msn.com/id/23853415 Now, isn't this what the Fed has been doing since August? Lets artificially create market instability for Fed action. That is what is going to happen in the future if this goes through. How is the market going to react this news? Odd time to release the news, Friday night.
This is nothing new, the PPT has been around since the crash of 1929. Jpmorgan being instructed to put in bids in every major stock in the Dow with the backup of the Federal Reserve. Sounds pretty similar to the rhetoric today. New words in policy, same effect. The spin machine trying to salvage an election.
Looks like the Fed shareholders have used the crisis as a way to increase their illigitimate power. Off the top of my head the perception amongst market pros of reduced profits for Wall St - although in reality they will negotiate any legislation down to toothless status. THIS, The Fed as "market stability regulator" is downright scary. Fed is formally approved to intervene anytime the market does something Bush does not think helps his cause. Confirms what has belatedly become patently obvious to all since August, US only believes in free markets when free markets are in their favour. No different than when US closed the stock market in 1914 to prevent foreign investors getting their [then gold backed] money out. Why not appoint Mohammed Mahatir as advisor, he has experience of halting short selling, then any selling, and then currency convertability. His experience will be invaluable Friday releases are assumed to be to cause the public to have time to think things through and not panick, what actually happens is that if the news is bad they spend the whole weekend schvitzing and dump shares on Monday morning. The sheeple will probably buy now that it is confirmed that the Fed has a formal mandate to prevent the market from ever going down again. Quick kneejerk thoughts, not my considered opinion.
Feds own the financial markets. Feds own your money and the banks and your destiny, They owned your grandfathers destiny too. They are like a US military guarding our homeland from terrorist attacks.. you can't mess with them. Stop fighting the Feds.
Wall St already knows and the market continued its sell off, only thing is will it be used as propaganda so that stocks can be gunned for the CNBC crowd.