Is the Fed Juicing the Stock Market?

[Crewleader]

by Mike Whitney / January 3rd, 2010

Is the Fed manipulating the stock market? TrimTabs CEO Charles Biderman seems to think so, and he makes a strong case for his theory in an article.

Biderman focuses his attention on the mystery surrounding the stock market’s 9-month rally and asks, “Where is the money coming from?” After all, the market cap has increased by more than $6 trillion since March 9. That amount of money should be fairly easy to trace; right?

Wrong.

Biderman: “The most positive economic development in 2009 was the stock market rally. (But) We cannot identify the source of the new money that pushed stock prices up so far so fast. For the most part, the money did not from the traditional players that provided money in the past.”

http://dissidentvoice.org/2010/01/is-the-fed-juicing-the-stock-market/

[FBaggins]

1. Context is important

It's as if the author missed the market collapse leading up to March.

The market cap increase since March doesn't have to mean massive inflows of cash that can be traced any more than the market collapse had market out-flows that were anywhere CLOSE to the loss of market cap.

[Tippy]

2. No doubt in my mind they are doing a lot more than JUICING

Ten days before his assassination, President John Fitzgerald Kennedy allegedly said:

"The high office of the President has been used to foment a plot to destroy the American's freedom and before I leave office, I must inform the citizen of this plight."

In this matter, John Fitzgerald Kennedy appears to be the subject of his own book... a true Profile of Courage.

In fact, as July's Whistleblower documents, the Fed's new chairman, Ben Bernanke, admits that the Federal Reserve was responsible for the Great Depression. "We did it," Bernanke said, adding, "We're very sorry."

But the Fed's sins go way beyond the Great Depression. "Since the creation of the Federal Reserve, middle and working-class Americans have been victimized by a boom-and-bust monetary policy," said Paul, the congressman best known for his steadfast commitment to the U.S. Constitution.

These interests control the Federal Reserve through about 300 stockholders:

* Rothschild Banks of London and Berlin
* Lazard Brothers Bank of Paris
* Israel Moses Seif Bank of Italy
* Warburg Bank of Hamburg and Amsterdam
* Lehman Brothers Bank of New York
* Kuhn, Loeb and Co. of New York
* Chase Manhattan Bank of New York
* Goldman, Sachs of New York
Because of the way the Reserve was organized, whoever controls the Federal Reserve Bank of New York controls the system, About 90 of the 100 largest banks are in this district.
Of the reportedly 203,053 shares of the New York bank:

* Rockefeller's National City Bank had 30,000 shares
* Morgan's First National Bank had 15,000 shares
* Chase National Bank had 6,000 shares
* National Bank of Commerce (Morgan Guaranty Trust) had 21,000 shares.
A June 15, 1978 Senate Report called "Interlocking Directorates Among the Major U.S. Corporations" revealed that five New York banks had 470 interlocking directorates with 130 major U.S. corporations:

* Citicorp (97)
* J.P. Morgan Co. (99)
* Chase Manhattan (89)
* Manufacturers Hanover (89)
* Chemical Bank (96)

According to Eustace Mullins, these banks are major stock holders in the Fed. In his book World Order, he said that these five banks are "controlled from London". Mullins said:
"Besides its controlling interest in the Federal Reserve Bank of New York, the Rothschilds had developed important financial interests in other parts of the United States ... The entire Rockefeller empire was financed by the Rothschilds."


WorldnetDaily.com
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=50935

[HughMoran]

5. World Nut Daily?

Seriously?

[TheWatcher]

12. The Source of the OP is not from World Net Daily.

But you think this is all fantasy and conspiracy anyway, Hugh.

You've pretty much got all this economic stuff figured out.

Why bother?

If you're only here in the thread for insults and one-liners, to be diplomatic, it's a waste of your time.

Somewhere there is a mainstream cable channel like CNBC peddling the views you agree with.

Honestly, I'd stick with that.

Not trying to harp on you, but just nudging you in a direction you'll probably find more agreeable. :)

[ernie1241]

7. EUSTACE MULLINS

Citing Eustace Mullins as a credible source about anything is highly problematic. Even the John Birch Society denounced him as an anti-semitic bigot whose writings are unreliable.

Incidentally, Mullins died this past Tuesday.

More info about Mullins' background here:

FBI FILES ON EUSTACE MULLINS: http://ernie1241.googlepages.com/mullins

[CanonRay]

8. Why won't the Fed open up their records?

If this isn't true? Why all the secrecy?

[dixiegrrrrl]

10. whoever controls the Federal Reserve Bank of New York controls the system,

Uhh..that is where Geithner was before he was moved to Treasury.
Geithner, who said that when he was at the NY Fed, he has " no control and no idea" how bad things were
and what was going on, and etc etc etc."

[truedelphi]

3. My advice is for everyone concerned about these matters to go to the website

AmericanCasinothemovie.com and order the video (if you can afford it.)

If you can't afford it, then try and get your local library to order it for the public. (Many libraries in Calif. will order a video for the public if you cough up fifty cents.)


Seven trillion given to inflate the economy before March 2009, and by end of March 12 trillion.

Facts figures, and interviews with the Wall Street insiders (Some of whom have their voices disguised and appear only in silhouette.)

[femrap]

4. k and r

Glad you posted this....really eye-opening.

2010: shit hits fan big time.

[sendero]

6. Of course they are..

.... it's not even a question.

There is nothing going on in the economy or prospective economy that justifies the ridiculous run up in stocks.

When the power brokers decide to, they will short the world and pull the plug, thereby soaking the middle class one last time.

[Beavker]

9. Ding, Ding, Ding

My take too. It's amazing how little real "facts" or Data can contribute to a Company, Entire Industry, or National Market...and my 401K dropping in value so quickly. I hate it actually. Stocks drop because analysts that are guessing on how something will turn out (earnings, etc.) overestimate it, and then the market tanks. So a company loses value because they don't make the profits that some jackball guesses they might make? Even if they are indeed profiting.

I've been in the industry almost 10 years, not as a trader or analyst mind you, but it still just befuddles me how such a few number of people (rich people, institutions investing on behalf of rich people, or analysts) can literally bring down your net worth on someone's guess, hunch, speculation of a future event that may or may not even happen, or simply just manipulating it because they have the means to do so. Even if that is not what is really happening. It's a day traders market. And each day our economy seems to be on the virge of disaster or recovery when not much has really happened.

It's not what I envisioned as I agreed to take a job in this industry.

[tom_paine]

11. And I think the Big Selloff is coming soon, maybe starting next week.

Just a hunch...

[upi402]

15. but WHO will keep order in the chaos?

Gee... or is that Xe...

[Hawkowl]

13. No shit

It's called the "plunge protection team" and it was instituted under Reagan. The stock market has become one big circle jerk between the big Wall Street Banks. These sorts of things ALWAYS end very, very badly.

[upi402]

14. Unemployment drops to 9.7 % as the US LOST 20,000 Jobs in January

My hero Amy Goodman just read that one like it was minutes from a city council meeting. I must be a real dum