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Getbig Main Boards => Politics and Political Issues Board => Topic started by: Bindare_Dundat on August 30, 2009, 09:43:22 PM

Title: Fed manipulation of the market.
Post by: Bindare_Dundat on August 30, 2009, 09:43:22 PM

What you are looking at is a chart of POMO activity (Treasury + Agency) that is being expressed as "billions of dollars per day." No effort has been made to account for weekends or holidays; this is simply taking each POMO and dividing it by the number of days that pass until the next one.

Pomo= Permanent Open Market Operations,  the purchase or sale of Treasury securities on an outright basis adds or drains reserves available in the banking system

The Fed is openly and actively buying dodgy debt from the government as well as from the private sector. On POMO days the stock markets exhibited some statistically unlikely upward thrusts in the final few minutes of each associated trading day.

Under this scenario POMO money is being shuffled out of the endless thin-air vaults of the Fed and into the banking system where it needs to find something to do.  One of those things, it seems, is to goose the stock market, especially late in the day.

Notice that the intiation of the POMOs correspond to the rally,

(http://www.chrismartenson.com/files/u4/POMO_billions_per_day_w_DJX.jpg)

Title: Re: Fed manipulation of the market.
Post by: GigantorX on August 31, 2009, 07:23:14 AM

Lots of money being flooded into the system, this shit ain't based on fundamentals, that's for sure.

Title: Re: Fed manipulation of the market.
Post by: Bindare_Dundat on August 31, 2009, 07:30:45 AM

Quote from: GigantorX on August 31, 2009, 07:23:14 AM

Lots of money being flooded into the system, this shit ain't based on fundamentals, that's for sure.

My man GigantorX gets it.  :)

Title: Re: Fed manipulation of the market.
Post by: Soul Crusher on August 31, 2009, 07:57:49 AM

Quote from: GigantorX on August 31, 2009, 07:23:14 AM

Lots of money being flooded into the system, this shit ain't based on fundamentals, that's for sure.

No kidding.  All of the stock trading action has been in the banking sector, where the Fed and Govt are propping things up. 

There can be no recovery until the UE situation recovers and until the consumer recovers since consumption is 70% of GDP.

Does anyone even take heed of the fact that IRS tax receipts are down between 30 - 40%???? 
 

Title: Re: Fed manipulation of the market.
Post by: GigantorX on August 31, 2009, 08:57:40 AM

Eventually this magic money will have to stop being forced into the system. I also read somewhere a a few days ago that a vast majority of the volume during the trading day is from money being pumped into the financials.

Title: Re: Fed manipulation of the market.
Post by: Soul Crusher on August 31, 2009, 08:59:53 AM

Quote from: GigantorX on August 31, 2009, 08:57:40 AM

Eventually this magic money will have to stop being forced into the system. I also read somewhere a a few days ago that a vast majority of the volume during the trading day is from money being pumped into the financials.

See my earlier post. 

This is nothing than the govt doing everything possible to keep blowing air in the balloon called the stock market that is ready to burst.