INTC uninspiring and the Employement data was way off, and most of the jobs are retail (low pay) and temp. PLus the whisper # for jobs was as high as 200,000. SP down a whopping 3 points. Give me a break brother. Best David
Your post is exactly what I am referring to in the context of the "Greenspan put"... would you not buy like mad know there is a floor under the markets. Please..1994, 1997, 1998, 13 rate cuts..this is the biggest business in the US now, come on. 8 months ago Dow was 3000 points lower...please. The Put is alive and well
guess they forgot to exercise the "put" in 2001 and 2002, just when it was most needed. Some people will believe anything as long as it sounds mysterious ....
Go read some history starting with the MExico bailout and Thai Bhat and LTCM bailouts..that was a key ingredient in developing the bubble that we are still in. You are naive if you think there is no hand in these markets, that's why it wasn't worse...it took the DOW over 2 years to go down, but here we are again knocking on Dow 10K again in 7 months..with out so much as one correction..especially when there are many crosscurents out there that are decidedly NOT equity friendly. Look I trade just like you do, just that this topic has always interested me..plain and simple. Best, and Good Trading to ya Have good weekend. David Time for a Martini!
this is an interesting thread.. Does the Fed buy futures or stocks.. Give me a break. Not a chance in hell. BUT.. other govs which don't have strict controls probably do. For instance, I am positive that some of the major companies in Mexico have a helping hand for a bribe.
I would say there is manipulation of sorts.. a "soft landing" indeed. How it is done is of little consequence. Keep in mind though, that the government can only shape market destiny to a certain extent. If you want examples of a heavily manipulated market with large government interests, just look at Forex. There have been extremely powerful governments snapped like a twig by the market when they stood in the way with price ceilings or floors. Markets rely on liquidity, and everyone involved has an incentive to keep that liquidity in place. If market participants lose trust in the system, liquidity goes away. Even the largest and most powerful economy in the world cannot stand against the market for long and thus lose its trust..... Goodluck,
Actually the Mexico bailout probably contributed hugely to the bubble in Asia. Governments cannot directly support markets through open purchases so much as their policies influence the flow of funds from the private sector. Just look at Freddie and Fannie, would they be where they are without an implied support? What was actually spent on the Mexico bailout (quantifiable) was much less than what then flowed into the bloated Asian markets as a direct result of false courage given to the private sector by a gov't sponsored safety net (not quantifiable).