Did the Feds save the market on Tuesday?????

verfasst von Derek, 06.04.2000, 14:12

Hab' ich im F.D.P. - Forum gefunden:
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Did the Feds save the market on Tuesday?????

HOW STOCKS TURNED BACK FROM THE ABYSS

By JOHN CRUDELE



SOMETHING happened at around 1 p.m. our time yesterday that pulled the
stock market back from the edge of the cliff.
Traders say it was almost like divine intervention. One minute the Nasdaq was
down 11 percent -- say it out loud,"Eleven percent in one day" -- and then it
suddenly rallied several hundred points in the matter of an hour.
The Dow followed suit. Down 500 points around mid-day, the blue chip index's
decline -- along with the horrible showing of over-the-counter stocks -- was
destined to make yesterday's market an unqualified disaster for investors and country.

Then, traders said, someone started buying large amounts of stock index futures
contracts through two major brokerage firms -- Goldman Sachs and Merrill
Lynch. These transactions are usually done on the QT so we don't really know
how many of these contracts were purchased.
And unless the brokers tell, there is no way of knowing which of their clients
were making the purchases. Goldman wouldn't comment on this and Merrill did
not return a call for comment.
But traders said enough were bought to catch everyone's attention. In fact, the
buyers seemed to want people to know they had an appetite for stocks.
Then the market rebounded.
It didn't go all the way back. At the end of the day the Dow Jones index had still lost 56 points or half a percent on the day. And the Nasdaq lost another 74 points, or the equivalent of a 1.77 percent drop. Yesterday's loss by over-the-counter stocks nearly put the Nasdaq index back to ground zero for the
year -- in two days all but 2 percent of its gain for the year was gone.

It was real nice of Goldman and Merrill to stick their necks out like that. In fact,it was downright uncharacteristic for Wall Street outfits to put the thought of possible losses aside for the greater good.

Because of the purely unselfish nature of what went on, traders are naturally
suspicious. Hell, so am I.

"I think some one or more persons saved the market today. There was a
suspicious urge to buy stocks at an opportune time," says one trader."Why drive
the Dow up 350 points in a half hour? That's never serious buying. That's
someone trying to establish prices," he adds.
I'm especially suspicious when the market suddenly rebounds at nearly the very
same moment that a member of the Clinton administration -- economic advisor
Gene Sperling -- is on TV telling investors not to worry.
And there's the obvious connection between Goldman Sachs and the
administration, the Wall Street firm having given Robert Rubin to the Clinton
administration as its Treasury Secretary.
Plus, what better way to make investors not worry than by having the stock
market recover a lot of the ground it had just lost. That gesture almost makes a
guy want to buy some stock -- bottom fish, if you are into sporting analogies.

I'm not saying that government intervention in a collapsing market is wrong. In
fact -- except for the obvious contradictions with the free-market system -- it is politically and socially a very right thing to do.

I've written about this before. And I've mentioned that Washington has had a
secretive group call the Working Group on Financial Markets, made up of
investment industry and government people, that would be in just the right
position to rescue the market.

Informally the folks on Wall Street call this the"Plunge Protection Team." In
February 1997, the Washington Post did a piece on this team, just in case you
don't believe it exists.

And while I can't swear that Goldman and Merrill are captains of that team, they
sure acted like it yesterday.

Please send your e-mail to: jcrudele@nypost.com

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gesamter Thread:

• Bankenfusion - ein Täuschungsmanöver - EH, 06.04.2000, 09:21
  • Bankenfusion... Zusatzinfo - EH, 06.04.2000, 13:05
  • Did the Feds save the market on Tuesday????? - Derek, 06.04.2000, 14:12
    • Re: Genau so hab ich es mir vorgestellt! - Dieter, 06.04.2000, 14:22
      • Re: Genau so hab ich es mir vorgestellt! - dottore, 06.04.2000, 15:06
        • Re: Japan - Andre, 07.04.2000, 00:12
        • eine andere alternative ist rechnerisch auch denkbar. - ocjm, 07.04.2000, 02:38
    • Re: Genauso dürfte es gewesen sein - Andre, 06.04.2000, 14:42
    • Hier der Link zur NYPOST: - Schlangenfuchs, 06.04.2000, 17:45
    • Na ist doch super! - pollux, 06.04.2000, 22:26
      • Re: Und Biotech, gedrittelt..?! - Andre, 06.04.2000, 23:17
  • Re: Bankenfusion - ein Täuschungsmanöver bis t-online ipo - ocjm1, 07.04.2000, 02:27