The government manipulates a myriad of markets. Obviously FX and Treasuries for starters, gold and oil via management of their own inventories and possibly from time to time index futures. One only need witness the Fed's shameless manipulation of auctions including the one last August when they purchased 7 billion in securities. The effects of said interest rate manipulation have an ipso facto effect on share prices. By effectively setting a ceiling on long bond yields, stocks are allowed room to grow in an artificially low rate environment.
lololol... lately I take smaller profit swings out of trades than my initial stops used to be. if the markets get any tighter, we'll all be needing free mental healthcare benefits
The Fed has not intervened in UST auctions. We discussed this at length in another thread. Stop believing conspiracy theories and think for yourself, pls. Indeed, but that's the way the cookie has always crumbled... I've had this discussion on a couple of other threads, so, as I said, there's no use in endlessly reiterating the same point.
..up in the last hour, the last day, the last week, the last month, the last 3 months, the last 6 months, the last year.. Were you arguing with me or agreeing?
Pretty convincing evidence. http://seekingalpha.com/article/156904-the-fed-already-buys-back-last-week-s-treasury-notes And then there's this admission by then Chairman Greenspan on Nov. 13, 2003: "There is an implication in the notion (of fighting deflation risks) that we are restricted solely to overnight funds. But our history as an institution indicates that there have been innumerable occasions when we have moved out from short-term assets and invested in long-term Treasuries. We do have the capability, if required to do so, to go well beyond activities related to short-term rates.â
The Chris Martenson article is not convincing evidence to anyone who knows how the treasury mkt functions. In fact, Martenson is exactly the type of storyteller that I referred to in my original post. I have gone through the numerous errors/fallacies/inconsistensies in his article in detail in another thread. Let me know if you can't find it. As to Greenspan's comments, all I can say is "DUH!". Firstly, the SOMA account at the NY Fed moves in and out of all sorts of assets, including longer maturity treasuries. This is done through periodic coupon/TIPS passes, as well as the everyday mkt activities of the NY Fed's trading desk. Furthermore, pretty much every central bank across the globe engages in these types of trading as part of normal operations. This is hardly a secret and is documented in painstaking detail. Moreover, as I keep saying, mkt participants routinely scrutinize the Fed's treasury holdings, 'cause, if you trade treasuries on an RV basis, it makes a difference to whether you make or lose money. Secondly, what Greenspan was referring to did, in fact, happen when the FOMC authorized the outright treasury/agency/agency MBS purchase programs. There was nothing secret about the activities of the NY Fed in that regard either, so I am not sure how you've managed to imply something clandestine and sinister from Greenspan's statement.
I'm not saying any of this activity is clandestine. But I am saying it's manipulative. And I will look up the thread you're speaking of. Don't misconstrue; I think you're a brilliant guy and one of only a dozen or so participants here worth listening to.