'Plunge protection' behind market's sudden recovery ...
Mysterious forces were trying their best, but they couldn't keep the stock
market from swooning Wednesday. They failed in the morning, despite massive
purchases of stock index futures contracts. Within minutes of the market's
opening, the Dow Jones industrial average was down 350 points. Later in the day
– after a lot of shocking ebb and flow – the Dow bottomed out with a decline of
460 points. It was only in the last hour of trading that the market saviors
managed to trim the Dow loss to just 173 points. And they succeeded only after
Janet Yellen's private, upbeat remarks about the economy were leaked. Welcome
to a new kind of stock market – one that the average investor should refuse to
be invested in. – New York Post, John Crudele Dominant Social Theme: Markets
are fairly free, not manipulated. Free-Market Analysis: Veteran financial
reporter John Crudele has blown up the myth of the market-driven stock exchange
with this astonishing article in the New York Post. We were attracted to it not
only because it tells the truth, in our view, but because we have been making
the same points regularly for years. The market is managed. Its managers want
it to rise. Central banks and governments are now buying markets directly. -
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