Fed also involved in gold market in ways it won't discuss (see link). Warren Buffett was wrong about our system working. We don't have that system anymore. Obviously there's no more "invisible hand". http://www.gata.org/node/8192
sjfan... so because the police doesn't investigate or - according to you - would close the file, that means I should think it doesn't exists?? you're having too much faith in the justice/police system. Here is one example to make you understand your logic is flawed and the analogy is plain wrong. Domestic violence is a fact. If you're woman and and your husband hits you in the stomach it hurts but it doesn't leave any evidence. Also there is no evident motivation so if you go to the police, they can't do anything for you and there is no investigation. Yet there is a crime. Also thinking that there would be a criminal investigation against the FED is pure fantazy. It's ignoring its power.
....wow.... I'm sending my kids to private school when they are old enough. This is some really awful logic and basic ignorance of epistemology. And no, I wasn't advocating that there'd be a police investigation of the matter. I'm also fairly certain you don't know what the word analogy means, which is not surprising in light of everything you've said.
Oh come on, I show that your logic is wrong and your 6th grade analogy was laughable... Don't hate me.
Can I suggest you send them to Tenderbear & co? The Care Bears will take good care of them. Over there, nobody lies, there is no conspiracy and everyone loves each other.
why dont you conspiricy nuts get together and collect this $100000 bet. should be easy for you. "I hereby offer a $100,000 advance against 50% of the royalties to anyone who can "show me the trades." Give me names and dates. I will write the book, and we both become famous. Further, can you imagine what political hay the opposition political party would make of the proven existence of a PPT? Do you think that the Dems wouldn't love to embarrass Bush with "proof" of his manipulation of the market?" http://www.safehaven.com/article-721.htm The Plunge Protection Team by John Mauldin I have had so many letters of late asking me what I think of and/or know about the existent of the so-called Plunge Protection Team, that mysterious group of government officials who secretly prop up the stock market when it drops too much, that I am going to jump in where wiser minds would just leave the subject alone. It will offer a good opportunity for you to understand concepts of arbitrage and how the markets really work. Plus, if you can prove me wrong, I will show you how to get a quick $100,000. Following the stock market crash in 1987, the government created something called the President's Working Group on Financial Markets. The group, which includes the Treasury secretary, Federal Reserve chairman, chairman of the Securities and Exchange Commission and chairman of the Commodity Futures Trading Commission, was formed to ensure the smooth operation of financial markets. Citing a Washington Post article, Carol Baum recently wrote about a 1997 article: "The Working Group's main goal, officials say, would be to keep the markets operating in the event of a sudden, stomach-churning plunge in stock prices -- and to prevent a panicky run on banks, brokerage firms and mutual funds..." "The thrust of the article is official's efforts to avert a liquidity crisis, which is exactly what the Fed did when it flooded the banking system with reserves following the 508-point plunge in the Dow Jones Industrial Average on Oct. 19, 1987. How an effort to ensure adequate access to credit to prevent a domino effect in the event of market meltdown morphed into a cabal to prop up the stock market is anybody's guess. For a window into the depths of the conspiracy theory, type "plunge protection team" into Google and see what comes up." Every time the market drops and then "mysteriously" rallies, knowing individuals look at each other and nod, seeing the handiwork of the PPT (plunge protection team). Let's say it straight out. The plunge protection team does not exist. It is an urban myth. Let me step by step prove it does not exist, and see if we can learn something in the process. http://www.safehaven.com/article-721.htm
What do you hope to find exactly, a big bolded section in the Fed balance book called "here be secret slush fund used for PPT"? You either chose not to read the link that was posted above, or too dense to understand its context. There is no possible way for the Fed to do the purchasing that PPT entails without a dramatic impact on open market operation, which is very transparent. (I used to trade treasuries on an institutional level; believe me, all the publically available information are extremely timely and detailed). That leaves the second possibility: that there's some secret reserve of cash that comes from... no where. If you believe that, then there must be a HUGE intergovernmental conspiracy to make that happen. What makes you think a GAO audit will show you the truth? If this fund exist, then the GAO must surely be in the plot - after all, someone else in the government must be shifting money to the fed - be it the treasury or some other group. I'm beginning to think you are the only one not in on the plot. Surely is lonely out there....
No question the PPT exists. I'm willing to bet that actual secretive PPT buying commenced at the time the market hit rock bottom, and at the same time that eliminating short-selling was bandied about. This covert op was a lot easier and a lot more palatable (in their eyes), than altering the market mechanics outright with a short-sale ban. I'd love to audit the FED's books. More importantly, this is another bubble, that when burst, will cause the market to fall harder than it did a year ago.
wow they are good traders. if they bought the bottom with billions of dollars they must have billions of profits someplace after a 60% straight up move. wonder who gets the money? do they meet in a secret room and divy up the profits to keep everyone quiet?