Wednesday, October 24, 2007

Crash Averted by PPT

The absolute garbage coming from the Federal Reserve in the form of jawboning, daily repurchase agreements and soon-to-be-announced round of rate cuts, have distorted and perverted the US equity markets to a point at which there should be no investor confidence whatsoever.

With the markets down significantly all day, the Fed and Treasury, under the guise of the Plunge Protection Team (PPT, or, more specifically, the President's Working Group on Financial Markets) sent stocks soaring off their lows and nearly into positive territory. The most egregious escapade was on the Dow, which went from being down 190 points at 2:15 to UNCHANGED at 3:15. Right around 3:10 ET, the index went absolutely parabolic, gaining 70 points in under four minutes.

There are no brokerages, investors or arbitrageurs on the planet who could have accomplished such a monumental market-moving feat other than the PPT, working in concert with the nation's largest brokerages, Merrill Lynch (more about them later), Goldman Sachs, et. al.

The fraud perpetrated upon the people of the United States is one which purports that our financial markets are safe and secure, when in fact they are propped up daily by infusions of cash from the Federal Reserve and brokerages working in concert.

Only some late day selling by honest market participants kept the markets from a complete recovery into positive territory. That the Dow finished the day anywhere near positive is an affront to every educated trader on the planet. I take these matters personally, since it is my money (and others) being toyed with by the Fed.

The unmitigated actions by the Fed of late have become so pronounced and obvious to seasoned market watchers as to be laughable, were it not for the fact that they are pumping billions of dollars into the markets to avoid a complete and utter capitulation of the equity markets. With the worldwide credit markets already in a state of seizure, the Fed and Treasury actions are a desperate propping up by a bunch who are effectively destroying the value of the US Dollar every day. They deserve nothing less than a monumental market crash followed by ouster from office and criminal proceedings.

It's sick. It should stop, but it won't. We're under a fascist regime, so all lies are allowed, even big ones that affect the lives of every man woman and child in the country and millions more who haven't even been born.

Dow 13,675.25 -0.98; NASDAQ 2,774.76 -24.50; S&P 500 1,515.88 Down 3.71; NYSE Composite 10,009.30 -31.69

Despite the outright rigging by the Fed, PPT, Goldman, etc., stocks sagged again on Wednesday as the overhang of the mortgage malaise continues to haunt any company even remotely associated with the housing industry.

Merrill Lynch, one closely aligned by the weight of their mortgage portfolio, got the ball rolling downhill before the markets opened, offering a third quarter report that the officers of the company wish had been chewed up by a friendly dog.

Merrill (MER) lost so much money this quarter it won't fit on the screen. They were pounded most of the day and according to reports, investors were withdrawing money from Merrill trading accounts as quickly as they could.

As sickening as the corrupt Fed intervention into today's (and every day's) market was, declines outnumbered advances 2 to 1 and new lows distanced themselves from new highs, 353-161. It's a very sick market which should have closed at or near the intraday lows.

Oil was up another $1.83 to $87.10, gold gained $2.50 to $765.60, and silver slipped 6 cents to $13.59

But, really, how did the Dow lose less than a point? The US economy is virtually on its knees. That's without a doubt, despite what the president, Ben Bernanke, Hank Paulson, or any other paid shill tells you.

NYSE Volume 3,803,483,500
NASDAQ Volume 2,739,684,250

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