Use access key #2 to skip to page content.

alstry (35.86)

Is the Stock Market A Fed Created BUBBLE???

Recs

17

January 05, 2010 – Comments (9)

NEW YORK (MarketWatch) -- The unusual circumstances that led the U.S. market to rally powerfully in 2009 might be explained by secret government moves to buy stocks, according to Charles Biderman, the founder and chief executive of TrimTabs, a research firm that tracks liquidity flows in the market.

"We cannot identify the source of the new money that pushed stock prices up so far so fast," Biderman said in a statement Tuesday.

The source of approximately $600 billion net new cash necessary to lift the market's overall capitalization by $6 trillion last year could not be identified by TrimTabs, Biderman said. The money, he said, didn't come from traditional players such as companies, retail investors, foreign investors, hedge funds or pension funds.

"We know that the U.S. government has spent hundreds of billions of dollars to support the auto industry, the housing market, and the banks and brokers. Why not support the stock market as well?"

The Federal Reserve or the Treasury, Biderman said, could have easily manipulated the stock market by purchasing $60 to $70 billion worth of futures of the S&P 500 Index (INDEX:SPX) on a monthly basis.

REVENUES TO THE S&P CRASHING

NET OUTFLOWS IN EQUITY MUTUAL FUNDS

MASSIVE INSIDER SELLING

REPORTED P/E ON S&P OVER 140

QUESTIONABLE ACCOUNTING OF ASSET VALUES AND PENSION LIABILITIES

COMPANIES JUST REFINANCED OVER $1 TRILLION DOLLARS OF DEBT SIPHONED FROM OUR PENSION FUNDS GENERATING HUGE FEES FOR WALL STREET

FROM THE MAN WHO TOLD YOU SUB PRIME WAS CONTAINED AND HOUSING NEVER DECLINED ON A NATIONAL BASIS BEFORE........................................

WHO ELSE WOULD BE FOOLISH ENOUGH TO DRAIN OUR PENSION SYSTEM INTO A MARKET FACING THE ABOVE HEADWINDS??????

9 Comments – Post Your Own

#1) On January 05, 2010 at 10:39 PM, alstry (35.86) wrote:

IMGINE WHAT HAPPENS WHEN THE NATION LEARNS THAT THE STOCK MARKET IS NOT REALLY A MARKET AND SIMPLY MAY BE A FRAUD?????

CAN ANYONE SAY MADOFF??????????  IS BENNY THE NEW BERNIE??????

1.01.10........................................

Report this comment
#2) On January 05, 2010 at 10:45 PM, Ticker007 (< 20) wrote:

Alstry..lets all put on our sun glasses, climb to the top of your roof, smoke some wacky weed and watch the sun explode. Caps wouldn't be the same without you dude :)

 

 

Report this comment
#3) On January 05, 2010 at 10:50 PM, russiangambit (29.30) wrote:

Urghh, I just wish they told us instead of hiding it. If it truly happens then the big WS firms know and play accordingly at the expense of everybody who doesn't know. I have no problem with governments taking small stake in companies to support them. Small stake, though, no more than 5%.

But no, they think they have to keep pretense of the free market and hide the interference in equities markets. Who honestly believes it is still a free market?

Report this comment
#4) On January 05, 2010 at 10:57 PM, alstry (35.86) wrote:

WHAT EVER HAPPENED TO FULL AND FAIR DISCLOSURE?  I think it is a law of some sort???  Now we know why Benny The B doesn't want to be audited.....and the Fed's legal counsel could face issues for potentially lying in front of Congress.

TRUST ME....THIS OR SOMETHING SIMILAR IS THE ONLY EXPLANATION FOR THE RECENT RALLY IN THE FACE OF NET MUTUAL FUND OUTFLOWS AND MASSIVE INSIDER SELLING.

I have been blogging for a while that soon we will all find out we are all effectively Madoff's clients.....I just didn't think it would take this long to unfold.

Imagine the implicatioins on retirement accounts and pension funds......and the net worth of the nation.

Report this comment
#5) On January 05, 2010 at 11:24 PM, topsecret09 (38.54) wrote:

 This Is exactly what I have been saying for months....  In many of my blogs I wrote that many market moves could not be explained by a rational person,and that technical charting that had worked for me over the past 25 years was now Irrelevent. We were heading straight up on extremely low volume,even for the summer....  Something still smells.........   TS

Report this comment
#6) On January 06, 2010 at 12:22 AM, cbwang888 (25.41) wrote:

 

Fed printed and keep printing and bought US T-bond, Then US Treasury bought everthing else (junk bonds, municipal bonds, coporate bonds, preferred stocks, common stocks... send hundreds of billions to FRE/FNM to buy toxic junks from banks).

It costs more to USD holders than US taxpayers. The inflation will be surely coming in the next 10 years. Many of us will be millionares then and average housing price will be 2x from here ...

Report this comment
#7) On January 06, 2010 at 11:36 AM, leohaas (32.93) wrote:

"Urghh, I just wish they told us instead of hiding it."

Who exactly is "they" here?

Keep those conspiracy theories comming. I really need a laugh with my morning coffee...

Report this comment
#8) On January 06, 2010 at 11:44 AM, russiangambit (29.30) wrote:

> Who exactly is "they" here?

Treasury. If it walks like a duck, quacks like a duck , it is a duck. 

Honestly, you would believe that Geitner would not be tempted to do this? Because he has such an upstanding character?

And there is no need to say "conspiracy" in such disparaging terms. I am sure there is plenty that we don't know and will only know 30 years later when it no longer matters.

Report this comment
#9) On January 06, 2010 at 1:54 PM, russiangambit (29.30) wrote:

Here, in support of the "conspiracy" theory.

http://seekingalpha.com/article/181182-wednesday-outlook-the-fake-rally-follies

Report this comment

Featured Broker Partners


Advertisement