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Actually, there is a strong history of successful market manipulation. Recent
examples include the Hong Kong government's purchase of equities (the market
recovered, and the government now has a huge profit) and the rescue of Mexico
(which is still not out of the woods, but has avoided stepping over the
precipice so far). From the historical perspective, both the Marshall Plan and
the TVA are wonderful examples, as is utility regulation (other than in
Cincinnati??) and securities regulation.
Yes there are many examples of failures. I believe there is a place for the
free market and a place for regulation.
Regards
DanG
Tom Alexander wrote:
> Attempted market manipulation by beurocrats/governments has NEVER worked
> (please correct me if I'm wrong, and I realize there is a timing issue
> here). If the attempt to do so is a present reality, then it is giving an
> incredible and unmistakable signal. But, who really knows? I certainly
> would not doubt it, since we are living in a world where so many actually
> expect the govt. to 'fix' everything.The U.S. has almost gotten to a
> mindset similar to Japan where it was (is) expected that the economy/stock
> market would be attempted to be controlled by the government. If that is
> indeed the case, buckle up; It sure has worked well there over the past ten
> years.
>
> More importantly, the reservations for the big tupperware party continue to
> pile in...we're talking ice trays, salad bowls, those little lunch size
> thing-a-ma-jigs...
>
> Regards,
>
> Tom Alexander
>
> ----------
> > From: Dotsie <dbisn@xxxxxxxxxxxxx>
> > To: realtraders@xxxxxxxxxxxx
> > Subject: Is there really a CCT?
> > Date: Saturday, August 07, 1999 1:55 PM
> >
> > Early Thursday things became so serious, with key stocks down huge
> amounts,
> > that apparently the Fed's rumored "Crisis Control Team" (CCT) was brought
> > out
> > to produce a market rally. Suddenly, within 45 minutes, the NASDAQ
> > Composite
> > rallied from a loss of 66 points into plus territory. This produced big
> > short
> > covering, and strong gains by the close.
> > I believe that Friday's negative Labor Report was already known to the
> Fed.
> > They were fearful that if a rally were not produced, it would cause a
> market
> > crash on Friday. This way, when Friday's numbers were announced, the
> stock
> > market's reaction was milder, although bonds plunged once again.
> > In the credit markets I hear much more about the potential Y2K problem.
> As
> > I
> > wrote in Bert Dohmen's WELLINGTON LETTER a number of times, it's not the
> > real
> > problem, but the fear and uncertainty which will produce huge liquidation
> of
> > stocks. The big money will not wait until December to sell. They're
> doing
> > it
> > now. In our PRIVATE PORTFOLIOS program for mutual fund investors we went
> > into
> > 100% cash this week. I recommend you do the same.
> >
> >
> >
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