I think I've found out how the PPT/Fed props up the markets

Discussion in 'Economics' started by The Kin, Mar 17, 2008.

  1. It's obvious there is a PPT, but too many conspiracy theories on how they operate. One common one is they buy futures. Another is GS is used as their proxy.

    None of that's true, of course.

    It's also pretty obvious that the markets and especially the DOW is being heavily manipulated today, but how. Who could manipulate the entire market if not the PPT/Fed. How could they do it without being caught?

    Then it hit me.

    There was a really unusual spike in the short term bonds early today. Yields fell to as low as .5%

    They've since pulled back nicely as I'm sure many are profit taking. So what happens to the extra money? I've noticed longer term yields have slowly fell, but I'm sure many of the dollars also went into equities as many bonds are probably seen as overpriced (Negative yields with inflation).

    It must have been many billions of dollars to move the market.

    The fed regularly buys and sells short-term bonds. They had to known one of the consequences would have been instutions would profit take and start investing where they fell they can get a better yield, such as the stock market. The other consquence would of course be a lower dollar due to the Laws of Supply and Demand.

    So it could it be?
  2. No. Stick with the "GS Proxy Theory".
  3. FredBloggs

    FredBloggs Guest

    the dow and other markets are manipulated by several organisations, not just one. the bigger they are, the bigger the time frame/ move capable of being manipulated

    as gs as a proxy broker, probably yes, but i can assure you they will have lines at other houses as well to cover their hand. no big player carries eggs in a single basket.

  4. Hide in plain sight.