Debt Rattle Apr 11 2014: Manipulated Markets And The Empty Bag


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    Dorothea Lange Migrant camp farm worker figuring year’s earnings, Marysville, CA October 1935 Well, stocks are down substantially over the past few da
    [See the full post at: Debt Rattle Apr 11 2014: Manipulated Markets And The Empty Bag]


    My own guess/prediction/for amusement only – is that the Owners are fully in control of this market still; and they’re planning to do “pump and dump” for at least a full year yet. So – this time in two weeks? Market will back, and moving up – likely for 1-2 months – so enthusiasm starts to recover- then dump time again. It’s not hard for them to profit in both directions – when 20 multi-billion hedge funds- with no regulators – all know when they’ll all pull their triggers. Check back in 3 months.

    Of course – little things like The Ring Of Fire going off – do still have the ability to disrupt their plans; but so far, they’re doing fabulous.


    Holding the bag is what retail investors do best, maybe because so few comprehend Tail Risk, that monster that eventually mashes the most enthusiastic of “Believers.”

    True, timing rigged systems is tough, but some Fat Tail event will throw the most astute trader and best manipulator for a loop.

    And it sure seems quiet and complacent out there. Perfect conditions for surprises.


    Putin thrown out of the G8, even though Russia had helped Ukraine to the tune of $35 billion. I wonder, if Trudeau was still PM, whether that would have happened. And Libya and…..
    Canada is no more than an American puppet now. Trudeau certainly had his faults, but I know he would not have stood for what’s happening now.


    “Faber says the markets are figuring out that the Fed is clueless, and I’m not so sure about that, I think it’s more likely that the Fed is not trying to do what it says it is, and that what it does try it does very well. And if that includes a stock market bust, it won’t hesitate. ”

    Yes, well down the rabbit hole we go.

    To start let’s review Lee Adler’s analysis wherein the Fed starved the Primary Dealers and shrunk it’s System Open Market Account. Lee’s site has buried the chart so let link with apology link CNBC. At the 2 minute point note the fall in the SOMA pre crash 08. {which Santelli (father of the Tea Party, in a way) ignores. That drop in SOMA late 07 and 08 presaged the crash.

    Did the Fed do this on purpose to foment a crash? A crash which resulted in more power and wealth for the few. Especially those within or attached to the TBTF banks. Perhaps but it seems unlikely since that would be conspiracy. Wherein nice economists are actually not nice but part of some secret cabal. I doubt it. Would very nice Janet Yellen now take the same path? I vote unlikely.

    While it is true the Fed’s Open Market Committee members for the most part do know that QE does effect stocks and asset prices favorably it seems extremely unlikely that they don’t believe that in so doing that self sustaining ‘organic growth’ will follow.

    So I call the Fed leaders usefull idiots to the few, not conspirators, Others may differ.


    While those declines in those comparitive charts are nice, all they do is bring us all or part of the way back to the 2008 levels when I got out to avoid the monumental declines we were expecting at the time (i.e. anyone else remember DJIA to 1,000?)

    I dont know, I guess I should be happy I got out with some skin still on my flesh. Timing the stock market was not in any way my purpose for reading TAE. Still, to look back at those charts and how different my life would have been had I stayed in til now, is nothing short of infuriating.

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