Oh, you mean like the market suddenly reversing at 2:30pm, like it does a whole heck of the time, and erasing 500 points of 800 down to close above 10,000? Nah, coincidence.
What about the new fed policy of direct institutional liquidity injections??? If you were company XYZ, and your stock was falling at a rapid rate, not unlike today, and the fed decided to give your company a multi-billion dollar "liquidity injection" of sorts....what would be the implication of this? I'm assuming either way it has a very positive influence on the stock price. The company would probably immediately initiate a buyback with this new cash, among other things, in order to buoy stock price and repurchase while prices were discounted. Maybe we saw this happen today at 2:45 when a deluge of buying started (with no obvious catalyst) as the market made a series of lower lows. Maybe I'm ridiculous for thinking this way, but maybe not. This is one of the new powers granted by the bailout bill. Any thoughts?
The problem of financial markets is the secrecy and lack of transparency. You don't see the identification of traders, nor any history on trades or positions. Along with opaque financial instruments - it lends itself to corruption and temptation - pure and simple.
Wrong, wrong, and wrong. Try subscribing to a decent news service. The market was rallying on comments out of the ECB that "they get it" and that a coordinated rate cut was in the cards before tomorrow's NYSE opening. After all, LIBOR is "only" at 4.3% Stop with the conspiracy BS.
You're right, but what do you think the implications are of the fed's new (and very real) power to be able to inject liquidity directly into an company? Do you think that the fed has exercised this power, and it just hasn't been disclosed to the public yet, kind of like discount window borrowing??