Originally published on February.8th,2020
Yesterday, Wall Street on Parade wrote an excellent article about the “spooky action at a distance” that many people have been noticing on major indexes lately. The price will suddenly collapse, but then — and just as suddenly — it will reverse for seemingly no apparent reason whatsoever; action which seems to indicate some kind of outside intervention.
(WSP) “Just how much the stock market is being manipulated was evident in yesterday’s chart for the Dow Jones Industrial Average and S&P 500 Index. (See above chart.) The markets plunged at the open; then staged an inexplicable sharp reversal rally; then plunged again – all before noon. We have watched this happen over and over since the New York Fed turned on its money spigot. There is a mantra on Wall Street that “the trend is your friend.” But there is no trend here. Markets can flip on a dime from plunging to spiking on no particular news. That strongly suggests there is a major player(s) pushing the market up using the Fed’s cheap money supply”. Read more
If you haven’t seen Jim Cramer’s infamous market manipulation interview from the early 2000’s, it is a must watch. He openly admits to manipulating the futures markets for the primary purpose of causing a sympathy reaction in a stock that he was trying to get rid of during his career as a hedge fund manager.
The video was captured from his paid subscription service which mostly consisted of high net worth individuals, so he didn’t expect the video to go viral. The internet also wasn’t as dominant as it is today either, and it almost got him fired, if you can believe that.
Asher Edelman, the man who inspired Gordan Gekko in the 1987 Hollywood classic, “Wall Street”, in an interview with CNBC in 2017, also said he thought the market was being manipulated.
None of this should be surprising to anybody who has followed the markets for long enough. When you take a step back and analyze the structure of our financial system today, you will quickly realize that manipulating the indexes isn’t as hard to accomplish as one might suspect.
Not only do three companies control 50% of the prime brokerage industry and 4 companies control of 39% of bank deposits, but they also own private exchanges that account for more than 1/3rd of all trading activity in the United States. To top all this off, The Financial Times reported in 2016 that these massive financial institutions are holding private off the record meetings with each other in brazen violation of antitrust laws.
Are you starting to get it?
The standing CEO’s of both the NASDAQ and Morgan Stanley — a stock exchange and an investment bank — sit on the board of the New York Fed. They even hold special committee’s with the largest hedge fund managers in America so they can receive “advice” on monetary policy; the very people who stand to gain the most from lax monetary policy and lower interest rates. It’s a disgrace.
Learn more about the fed here