Is the Stock Market A Fed Created BUBBLE???
January 05, 2010
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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??????
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