11 replies to this topic

[dwnowhere1]

Re: PPT

 

1)  I don't disagree the federal government has the mandate (Reagan administration) to affect any market  -- per Wiki.

2)  The big question is how they go about this   For example one would have to come up with the cash (do the FEDs have

      a slush fund for this?)  and then that cash would need to be used to buy stocks or other derivative instruments other than bonds (as I see it).

      I guess they could direct the Federal Reserve banks and their trading desks to enter the market.

3)  The next question is what do they buy?

      With N number of companies (say 5000) to chose from, would they buy a little of each, or only selected stocks?

      If selective stocks, then why them?

      What about the impact of doing this on the market makers for those affected?

 

As far as I see it, doing PPT could get real complicated quickly.

The fact there is little public information available, makes me suspect.

Edited by dwnowhere1, 28 February 2020 - 11:08 PM.

[LMF]

After Powells impromptu market address late in the session on Friday, theyre trying to figure out the odds of a coordinated CB response on Sunday nite before the Asian market opens. Just like the good old days when they rrun the Sunday nite massacre of the bears. This is always the confidence game again and it doesnt matter if the rate cuts really do anything to help the markets. This market is only about confidence......and maybe the Fed has figured it out. Just like 2009 when Ford was selling at 84 cents a share. That was nothing but vaporized confidence.