Government Stock Buying Operations?

Discussion in 'Trading' started by benwm, Sep 1, 2009.

  1. benwm


    What is the feasibility of the various Governments engaging in 'stock buying operations' to support various stock markets, WITHOUT SUCH OPERATIONS BEING ANNOUNCED TO THE GENERAL PUBLIC?

    It is easy to see how various policy leaders might justify this, to maintain confidence in the markets etc. until 'normality' returns. If we didn't know about such buying then any underlying market strength/resilience might be perceived as due to real end user demand thereby encouraging others to buy (trend followers etc).

    Clearly such measures would be financed using taxpayers money and there is the small matter of 'accountability' so is it realistic to believe that this could be done on a large scale without any announcement? No doubt policy makers would contend/believe that they are acting in everyone's 'best interests', I am just curious as to the feasibility of a plan without any announcement...

    Any thoughts?? Thanks in advance for any feedback.
  2. 3dog


  3. I'll say that I don't believe a US PPT exists, mainly because the S&P shaved 900 points from peak to trough this cycle.

    I think the bid dynamic that often seems like a PPT is in actuality the generally steady flow of a percentage of all retirement savings going into the market (401k contributions, etc).. This is a perpetual block of money going into the market indiscriminately generally without care for value, multiple, etc. If people feel generally safe and that there is compelling opportunity in the market, there is then little reason for selling pressure (excluding the hedge funds and retail guys that play with each other).

    Maybe at certain times what seems like manipulation is probably just large fund movement. I sure as hell know that 98% of 'investors' in the market are in aggregate not selling every or barely any open. Most leave it alone. That leaves 'traders' who are playing with shorter term money. I think the general hedge fund trade is to sell futures at the open to hedge their long exposure and to cover by close, just to reduce risk while someone is up. That's why we see the price action we see... not a PPT.
  4. benwm


    Thanks for the link on the PPT and the other replies.

    One thought that I had was that this could be the next phase of QE i.e. printing money to buy stocks.

    After all wasn't there $9TR that just disappeared from the Federal Reserve's balance sheet? (see link:

    Seems odd that a 25% fall in the Chinese stocks hasn't impacted the US market...
  5. Seems odd that a 25% fall in the Chinese stocks hasn't impacted the US market...

    We have a better Prunge Ploctection Team.
  6. zdreg


    the US is a 3rd world country financialy. the US is bankrupt because of trade imbalances pension promises on both the federal and state and local level.protest by patrioticET posters to the contrary cannot change this fact.

    tactics like manipulating stock markets are typical of 3rd world countries the precedent was oct. 1987 when greenspan instructed the ig wall street firms to buy.
  7. benwm


  8. Guys apparently 40% of all recent volume is in C, FNM,& FRE.

    I've seen this comment before, I must be missing something but this is only one data point, not enough info to discern if this is significant.
  9. benwm


    did you see that move today in gold? I may be wrong too, but I smell something's up and it won't be too long before we find out what.
  10. benwm


    I guess I also think that if you were going to prop up the market August when it is thin would be as good a time as any. Of course this cannot it be done indefinitely.

    Clearly this is just a theory of mine, I have no proof.
    #10     Sep 2, 2009