|
PureBytes Links
Trading Reference Links
|
>Read "Escape to the Futures" by Leo Melamed, Chairman of the Chicago
>Mercantile Exchange and his account of the '87 crash.... :05 minutes to
>meltdown and how an emergency loan kept the markets open the following
>morning...........
>
>DS
>
Yes, DS, the Fed made a LOAN. They are a lender, not an investor or
speculator. The simple fact is that Steven is absolutely right. The
Federal Reserve has no legal authority to intervene in the stock market, let
alone the futures market. This is not China, we don't make up the rules as
we go along. Just look at the grief Greenspan got from congress for the LTC
situation, when there was no bailout, no public money involved, all he did
was arrange a meeting and apply a little pressure. Can you imagine what
congress would do if they found out he was directly buying S&P contracts?
He'd be removed from his job in a heartbeat. It doesn't matter whether it's
a good idea or not, it's illegal and it will remain so until congress gives
him the authority to do it, and that's not going to happen anytime soon.
DS, if you've got specific evidence of Fed intervention in the futures
market, send it to the NY Times and sit back and wait for your Pulitzer
Prize. I won't hold my breath waiting for the front page story, though.
Bruce
|