NY Fed buying in the market using private investment firms, Reuters

Discussion in 'Economics' started by bond_trad3r, Jan 5, 2009.

  1. No, not stocks, that would be PPTish which we all know doesn't exist. The Fed is only buying agency bonds.

    Link is on Reuters

    So a question to the naive of the ET community, how come it is a strech for the Fed to buy during a plunge be it stocks, index futures, or flooding the bond market with funds pushing money into equities.
  2. theyll do anything rather than let price discovery happen. They still think we can expand our way out of the problem.
  3. Feds dis-credit the US Stock Market. The idea of manipulation is no longer a theory.

    The best way to destroy volume and confidence in Free Markets, use manipulation.
  4. BigGun


    Glad to see the media finally on this!!! It’s always been my hunch,, feds/treasury’s been trying to keep the market stable since the start of this crises, where do you think the tarp funds are going?
  5. The 20% rally prediction is due to the TARP funds.....

    Let us wait till earnings come out.....then we will see (M) pattern and make new lows for 09.
  6. It's not as if the Fed hasn't done this kind of stuff for the past three decades or so......

    After all if ANYTHING at least buying de facto Treasury securities is a direct function of the Fed's reason to exist. It's the OTHER 99% of the time they're over reaching.....

  7. Buy why do so many on ET deny the existence of the PPT when it has become so painfully obvious, especially after the events of the past year.
  8. Because...

    1. You can't use it to trade

    2. It provides a good excuse for losers (helping them to become consistent losers). Traders need to take blame for THEIR trades....not put it on someone else.

    3. Who cares? You can't control it
  9. In fact....they're not even buying into stocks like everyone thought. They don't just go into the market and buy on a whim. Whenever something "magic" happens they blame the PPT, when in all probability it was probably someone who was VERY wrong.

    In conclusion.....there is NO PPT. Never was