market mojo

[igsoy]

"the New York Federal Reserve has been busy doing those short term market operations "... "This week alone over $76.2 BILLION flowed to primary dealers. What exactly for we don't exactly know, but the conventional guess is the capital is being deployed to prop up the stock market."

http://buttonwood1792.blogspot.com/2007/03/pushing-on-string-new-york-fed.html

 

[bssc]

Send a couple of hundred million my way to prop me up. I find it amusing that Greenspan still feels a need to cry recession

 

[wabmester]

Maybe you guys could help me understand these Plunge Protection Team conspiracy theories.

If there really was a PPT, why wouldn't they simply make that fact public? Surely the idea that they existed would be more powerful than monetary intervention, so they could save a bunch of money by just saying "we are the PPT."

And if it's so easy to manipulate the market, why isn't everybody doing it? I'm sure some giant hedge fund could arrange a nice line of credit if it were a sure thing.

 

[d]

tinfoil hats and black helicopters.

 

[macdaddy]

Wouldn't lowering rates be the fastest way to prop up the economy, especially if housing is the drag?

 

[wabmester]

The PPT is supposed to instantly prop up the market by buying index futures or something. Lowering the fed funds rate doesn't provide that sort of instant gratification. It would weaken the fed's cred as an inflation fighter, it would cause another asset bubble, and if you think Japan provides any sort of example, it may do nothing at all but cause the fed to run out of ammo.

 

[brewer12345]

tinfoil hats and black helicopters.

Piglet sodomizers.