|
PureBytes Links
Trading Reference Links
|
Of course, the Hong Kong market manipulation was not hurt by three Fed
rate cuts either.
As for the CCT, nobody really knows the answer. Those that are in the
paranoid conspiracy camp that believe that the Fed or Treasury are out
there illegally purchasing equities and stock index futures are barking
up the wrong tree in my opinion. But, if the Fed is closely watching how
markets react, and possibly offering moral suasion to those that can
legally help prop the market is a whole other ball of wax.
What people do not understand though is that one set of purchases will
not turn a market around, especially if it does not fundamentally belong
where it currently is. Look at the recent BoJ interventions. If the
stock market is going to fall 40% (I am not saying that is what it
should do or that I even expect it to), barring a change in the laws,
the Fed and the government can do little to prevent it (maybe they could
cut it short at 35%).
Get back to Hong Kong, they were purchasing for months before the market
turned, and one wonders if it could have really vaulted higher if the
Fed had not come in and saved the world.
Steve Poser
http://www.poserglobal.com
-
----- Original Message -----
From: Daniel Goncharoff <Daniel.Goncharoff@xxxxxxxxxxxxxxxxxxxx>
To: Tom Alexander <gta3@xxxxxxxxxxxxx>
Cc: Dotsie <dbisn@xxxxxxxxxxxxx>; <realtraders@xxxxxxxxxxxx>
Sent: Sunday, August 08, 1999 10:18 AM
Subject: Re: market manipulation
> 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.
> > >
> > >
> > >
>
>
|