|
PureBytes Links
Trading Reference Links
|
So if the market goes down, who would you point the finger at???????
Chris Jackson wrote:
>
> Subject: Crudell-NEW YORK FED NEARLY ADMITS RIGGING THE MARKET
> Date: 6 Nov 1998 23:56:25 +0100
> From: Anonymous <nobody@xxxxxxxxxx>
> Organization: mail2news@xxxxxxxxxx
> Newsgroups: misc.invest.technical,misc.invest.futures,misc.invest.stocks
>
> ---- Begin Forwarded Message
> Crudell-NEW YORK FED NEARLY ADMITS RIGGING THE MARKET
>
> New York Post-November 6, 1998
>
> NEW YORK FED NEARLY ADMITS RIGGING THE MARKET
>
> By JOHN CRUDELE
>
> COM'ON. Tell the world that you're rigging the market.
>
> The Federal Reserve is just dying to admit that it has been doing
> brilliant - but alas, questionable - things to keep the stock market
> bubble inflated. A Wall Street Journal article on Monday is the closest
> the Fed has ever come to making this admission, although the newspaper
> apparently didn't know what it was on to.
>
> The Journal story was about the bailout of the hedge fund, Long-Term
> Capital Management, and how the Fed stepped in to save the day.
>
> The story gets interesting in the seventh paragraph, when it starts
> talking about Peter Fisher, the 42-year-old, No. 2 man at the New York
> Fed, whose official job is running the Fed's trading operation.
>
> In that capacity, Mr. Fisher is the Fed's eyes and ears on the inner
> workings of stock, bond and currency markets and is given a wide degree
> of latitude about deciding when certain events pose broader risks, the
> article says.
>
> He begins most workdays at 5 a.m. by checking the status of overseas
> markets...and ends them 11 p.m. the same way. In between Mr. Fisher
> SWAPS intelligence and rumors with traders and dealers from his office
> in the Fed's 10th-floor executive suite that overlooks the trading floor
> he runs, the piece continues.
>
> As I pointed out in a previous column, the market has done some strange
> things in the wee hours of the morning, especially between 5 a.m. and 7
> a.m., which ultimately affect how equities do in the New York market.
>
> Now I'm not necessarily against rigging the stock market. In fact, back
> when stock prices were collapsing a few months ago and everyone was
> whining, I wrote in this column that someone at the Fed or the Treasury
> ought to figure out how to rig the market and start doing it.
>
> I even pointed them to a piece in the Journal back in October 1989 when
> former Fed governor Robert Heller, suggested that it was the
> government's responsibility to rig the market in times of emergency.
>
> But I also believe that if the markets are being supported by the
> government that Washington should be responsible enough to alert the
> investing public. If people still want to put money in the market, fine.
> Maybe they'll even want to put more in.
>
> Remember Tokyo rigged its stock market for many, many years until its
> stock market collapsed and destroyed the economy.
>
> Now back to Fisher.
>
> What exactly does he give to these traders and dealers he talks to at 5
> a.m. in the morning? Swaps, which is the word the Journal reporter came
> away with, implies a give-and-take. What is Fisher, the second highest
> person in the New York Fed's hierarchy giving to traders?
>
> Just gossip? Or is Fisher giving away what Wall Street calls inside
> information.
>
> And why are Fisher and the Fed concerned about the stock market? The Fed
> has jurisdiction over the dollar and, as an extension, bonds. It would
> be a big expansion of the Fed's powers to suddenly have authority over
> stocks.
>
> But since this nation's economy has become so dependent on the stock
> market's success, the Fed's current interest in equities would not be
> surprising.
>
> I asked to talk with Fisher. I said I wanted to know about his interest
> in the stock market and the swapping of information.
>
> The Fed wouldn't allow it. I'm sorry but we've not going to make Peter
> available, said a spokesman in New York. He's kinda busy. I think the
> spotlight on him right now is a little too bright.
>
> You're damned right it is too bright - it almost caught him doing his
> trick with the market.
|