Government Intervention in Stock Market is Detailed by New Report, GATA Sa

[WhiteTara]

http://biz.yahoo.com/bw/050906/65371.html?.v=1

I have been reading about this in the stock market thread for months.

MANCHESTER, Conn.--(BUSINESS WIRE)--Sept. 6, 2005--A major Canadian financial management firm that a year ago published a compilation of evidence of central bank manipulation of the gold price has just done the same in regard to the U.S. stock market and has reached a similar conclusion.

The new report is titled "Move Over, Adam Smith: The Visible Hand of Uncle Sam," and has been published by Sprott Asset Management of Toronto. It was written by the firm's president, John P. Embry, and his assistant, Andrew Hepburn, and concludes that the U.S. government has intervened to support the stock market so many times that "what apparently started as a stopgap measure may have morphed into a serious moral hazard situation, with market manipulation an endemic feature of the U.S. stock market."

snip
"It is time that market participants, the media and, most of all, the government acknowledge what should be blatantly obvious to anyone who reviews the public record on the matter: These markets have been interfered with on numerous occasions. Our primary concern is that what apparently started as a stopgap measure may have morphed into a serious moral hazard situation, with market manipulation an endemic feature of the U.S. stock market.

snip
"In addition to creating a privileged class, the manipulation also has little democratic legitimacy in the sense that the citizenry has not given its consent. This has tangible ramifications. By not informing the public, successive U.S. administrations have employed a dangerous policy response that is subject to the worst possible abuse. In this regard, the line between national necessity and political expediency has no doubt been perilously blurred.

"We can only urge people to see what the evidence indicates and debate what is and ought to be a very contentious matter. The time for such a public discussion is long overdue."

[applegrove]

1. Oh no!

:hide:

[Drum]

2. Yikes!!!

Especially troubling considering this WH seems hell-bent on pushing us all into market-based "retirement" aka private accounts...hmmmmm

[glugglug]

6. retirement

is just a euphemism for death

[applegrove]

3. Actually every trader on the floor mornings knows this. Cause when

the dollar is down in Asia.. boom! It rises like the tide. Plus they have to publish the info on some obscure internet site or be guilty of insider trading.

Everyone in the financial industry already knows this. The same with the price of gold. That is also a competitor to the U.S. dollar. It has been kept low too.

[Trillo]

4. Uh, oh, price is getting a little out of line,

better have psyops release a little, "news."

[sandnsea]

5. Oil too?

Otherwise why are oil prices falling when all "free market" sensibilities say they should be off the charts. I've suspected this for quite a few years. I hope this report has hard proof.

[Prodemsouth]

7. They will not be able to keep this up forever. Greenspan leaving

in Jan 06- expect trouble soon after.

[NVMojo]

8. GATA is a good group, they kept a close eye on the gold markets

when rigging was going on with hedge systems being used to artificially control the price of gold in the late 90s ...

don't you just love this part:

"The new report relies largely on reports of news organizations and the essays and research papers of economics academics that, as might be expected, have not been well-publicized in the United States. But some of these reports have been circulated by the Gold Anti-Trust Action Committee over the years."

[Media_Lies_Daily]

9. Manipulation of the markets has been going on since Dec 2000.

[ret5hd]

10. i read detailed report on one method that is used:

Boeing (and others) have military contracts that contain clauses that guarantee their pension funds against losses in the stock market. These clauses are buried in the "cost plus" parts of the contract.

someone (a legislator, i think), noticed that the price of jets or something was jumping erratically, and looked into it.

it turned out that these companies comprise what is known as the "plunge protection team" (PPT). when the stock market falls over a certain amount, these companies are called on to dump money into the market (through their retirement fund holdings) to shore things up...WITH THE GUARANTEE THAT ANY LOSSES WILL BE COVERED BY THE FED GOVT.

ask some of those that frequent the daily "Stock Market Watch" thread...they can probably direct you directly to the report i read.

[fasttense]

11. Yeah, they also use a Treasury Dept fund to buy up future contracts

that are derivatives of the DOW and S&P. I noticed last week that people were saying that since the futures were up it was time to start buying.

The GATA report says this has been going on since the Raygun administration. But it doesn't exactly explain why the dotcom bubble burst so bad if Clinton was manipulating the stocks.

Anyway the report goes on to say that this manipulation, though sporadic at first, has become a routine event whenever stocks look like they may slip.

GATA says this manipulation of the market is not 100% fool proof, and when people realize they have been manipulated, we are going to have a major crisis in the market. Guess who will be left holding the bag.