Market Manipulation by Central Banks

Discussion in 'Economics' started by freemarketsvictory, Aug 21, 2019.

  1. The main difference between China and US is in China, the gov't gives orders to central banks to lend lend regardless of risk or return on investment when state owned corporations need money. they are ordered to lend and same with interest rates, the central bank in China believe in the gov't controlled economy. or gov't planning or controlled and rigged markets.

    you have ghost cities in China where orders are given to create GDP and same with pension funds who need a rising stock market or they are insolvent or banks become insolvent during 2009 when they had massive lossses in subprime loans.

    it's not a 'market based' economy. the interest rate of US is not 'market' rates. it's based on orders from the gov't or pressure from banks who borrow money from the central bank, the banks don't have any money to lend. there is a shortage of money with that much debt .

    In a FREE market, lenders of capital want the highest rate the 'market' would give them like price of stocks, and buyers want to buy the lowest. central banks are politically 'interference' like Trump threaten to fire the central bank if he raise rates from 40 year lows when unemployment is 5% not 15%

    jobs or why people invest are not based on interest rates, demand and price and PROFIT is what drives investment thus creating jobs. or FEAR what is now happening fear of inflation with central bank policy of Inflation, the policy of central bank in the 70's was anti-inflation

    now rats are low so the market doesn't correct itself like in truly 'free market' the market is now like ponzi scheme. as long as people don't sell and new money comes in from the central bank the party keeps rolling. on in the musical chairs. the cental bank is like the DJ,,,if the fed stops playing the music, the party is over.

    that is the essence of market manipulation by central banks or gov't

    then again, most of the money is put into market indexes not individual stocks
    in this market not all stocks rise in a rising market
    some stocks, you won't buy it even if interest rates was zero and it's free to borrow money to buy it.
    with stocks in worthless overpriced stock,,there are no refunds, and sold as is where is buyer beware flea stock market.
     
    Last edited: Aug 21, 2019
  2. dozu888

    dozu888

    ok... another guy butt hurt after missing a 10 year long bull market lol..

    stop complaining... tons of guys like this out there.. empty handed, butt hurt, trying to self-medicate with any signs/theories a crash is coming.

    DOW 40000 minimum... make some money... stop complaining.
     
    drm7 and noddyboy like this.
  3. Overnight

    Overnight

    That is all fine and good, but WHEN will it happen? And how far will it drop from it's current level before it reaches that 40,000 level?
     
  4. maxinger

    maxinger

    This is totally irrelevant !!! whether market is manipulated or not is immaterial.
    even if market is manipulated, do not be overwhelmed by fear by insecurity by negative emotions

    Bottom line is the market is very tradable be it manipulated or un-manipulated.
    so simply trade according to your chart.

    HAPPY TRADING !!!
     
    trader99 likes this.
  5. dozu888

    dozu888

    in a couple of years.... market is shaking hard trying to get rid of speculators... meanwhile corporations are buying at full throttle.. free money for them.

    in my 'trading is easy' thread I have laid out some fairly crude way of guessing correction depths and have personally guaranteed no crashes... so far they been working out fine... so far the dumb money is still fairly short, so yeah for the foreseeable future it's 5-7% corrections here and there..

    if things change I will let you know lol.
     
  6. Overnight

    Overnight

    From where I sit, the correction is starting now, because I am long in the market. I seem to have this power, it is uncanny.
     
    zdave83 and trader99 like this.
  7. smallfil

    smallfil

    If you think the stockmarket is rigged against you, why are you in the stockmarket? You want huge returns and to become rich that is why! Funny, you blame the Federal Reserve for manipulating the stockmarket but, leave out liberal media like CNBC and Bloomberg of their effort to stoke fear in the stockmarket. And do not tell me CNBC does not have a huge effect on the stockmarket. They are making comments daily. Enough to brainwash the gullible into believing everything they say! CNBC including, Sara Eisen talks about recession then, the head of the Federal Reserve of San Francisco says recession is not likely based on the strength of the economy. So, who is lying? Both cannot be telling the truth! I called out Sara Eisen on this CNBC bullshit to frighten small investors and traders. She did not reply but, I called her out on Twitter where millions can see my post and think for themselves, instead, of lying hacks on CNBC! The stockmarket is fine but, let us get real, you are but, a sardine swimming among sharks. Be smart enough to stay out of the sharks way, otherwise, they will just swallow you whole! The hedge funds and big investors will gladly, take your monies if you do not know what the heck you are doing! That is a fact!
     
  8. zdreg

    zdreg

    A Broken clock is right twice of day.
    Lots of luck.
     
  9. CharlesS

    CharlesS

    From a short-term trading pov, what does it matter if the market is manipulated ?
    Like all the other players, the manipulators can't get around the mechanics of price action.

    NB a trading pov only, from fundamental pov it all ends badly
     
    piezoe likes this.
  10. it's called 'cheating'
    those are rules in the street. or known as ground rules.

    like insider trading it's only illegal in wall street, but from criminal perspective, insider trading does nobody any harm and not really a 'crime'
    insider trading was made 'felony' by wall street so some market market doesn't lose their ass on people with and 'edge' or nobody will sell naked shares and naked options.

    insider trading laws is to protect wall street not protecting the 'public'
     
    #10     Aug 22, 2019