|
PureBytes Links
Trading Reference Links
|
Steve, I do not believe that an "open mind" is synonynous with "idiot"
or "one who sees conspiracies everywhere".
Blind faith, however, & no interest whatsoever in examining the
possibilities has its' downside. I have always said, those who rely on
government to do the right thing deserve what they get.... for example,
(and a surprise to "most trusting Americans" in 1933) was Roosevelt
confiscating gold and replacing it with the fiat, non-redeemable paper
we use today. Incidentally, the dollar, controlled by our "honest
Federal Reserve" has lost over 90% of its value since the Fed's
inception in 1913. But.... we must "trust".
The following information, if true, & the logic following should alert
one to at least being aware of "the possibility" that this government
"may not" be different from others. (Received 10-15-98)
------------------------------------------------------------------------
In a London Telegraph article on the Plunge Protection Team, Ambrose
Evans-Pritchard says, "Decisions (about intervention in stocks) are made
in conjunction with the National Economic Council at the White House,
and the Governor of the New York Federal Reserve Bank… They have each
other's telephone numbers at all times and are plugged into a
sophisticated ‘market surveillance’ system that helps them anticipate
trouble."
(The following logic was not mine but I think valid):
"If true that means:
a) the WH is involved, so politics rules, and b) If ‘they’ anticipate
trouble, this implies they've intervened before, when major support in
stocks is threatened. You can now get a refund from those pricey
Business-schools that preface all stock market theorems with ‘in freely
traded markets’."
Personally, I will keep an open mind. I know one thing for sure, Alan
Greenspan, Robert Rubin, or Bill Clinton are not going to tell me if
they are engaged in illegal stock market interventions... that's a
given.
------
Regards, DS
------------------------------------------------------------------------
steven poser wrote:
>
> I am constantly amazed at what people will believe. What I love best
> about folks that believe in conspiracy theories, that the Fed buys
> futures (Earl, though I disagree with you on the futures purchase stuff,
> you are obviously not in the idiot category.)
>
> Alan Greenspan is the consummate market behaviorist and technical
> analyst. I am not suggesting that he sits there and draws lines, looks
> at OBV and RSI. But, he may be the only Central Banker in the world who
> understands how to mollify the markets. I wrote to my clients back
> before the first rate cut that the Fed would go again between meetings
> if they only went 25 bps on 29-Sep. I made this call based on how I
> thought the markets would react, and how I figured Greenspan would react
> to that. The day that the Fed cut again, was the first time I saw
> inklings of the market getting ready to turn lower. I think if the Fed
> had not cut then, we'd be at 6800 now and not 8600.
>
> Alan Greenspan almost certainly has no great love for Bill Clinton.
> Clinton is a Democrat and Greenspan is a Republican. So, Alan is not
> saving Bill. He is not saving a Republican Congress either that sits
> there and asks for rate cuts also when the economy is humming along. The
> FED is and must be fiercely independent.
>
> LOOK WHAT HAPPENS WHEN A CENTRAL BANK IS BELIEVED TO BE CONTROLLED BY
> THE GOVERNMENT (OR ACTUALLY IS CONTROLLED BY THE GOVERNMENT). LOOK HOW
> ENGLAND AND FRANCE HAVE IMPROVED THEIR ECONOMIES SINCE THEIR CENTRAL
> BANKS GAINED MORE INDEPENDENCE. LOOK AT THE FRIGGIN MESS JAPAN IS IN
> BECAUSE THE BOJ IS NOT INDEPENDENT.
>
> IF THERE WAS A TRUE BELIEF (AND FOR THAT MATTER REASON TO BELIEVE) THAT
> THE FED WAS CONTROLLED BY ANYBODY BUT THE CENTRAL BANKERS, THE DOW WOULD
> BE AT 5000 NO MATTER HOW LOW GREENSPAN PUT RATES. THAT IS HOW MUCH
> CONFIDENCE WOULD BE LOST.
>
> OH, AND THE FED IS ALSO NOT CONTROLLED BY WALL STREET. IF IT IS GOING IN
> TO SAVE STREET FIRMS, IT IS TO PREVENT A PANIC. I WAS NOT THERE IN 1929
> WHEN BANKS FAILED LEFT AND RIGHT. DO YOU WANT TO SEE THEM FALL LIKE
> DOMINOES?
>
> Remember, though how Wall Street goes, is not how the whole economy goes
> (did you see GDP yesterday? -- AND PLEASE DONT TELL ME THE FIGURES ARE
> RIGGED OR I'M GOING TO PUKE), failures are a different story. The
> markets are all about psychology, expectations and behavior. Nobody is
> better at managing that than Alan Greenspan. If it looks as if the Fed
> is controlled, it is only because knows how to pull the strings.
>
> Steve
--
Douglas
|