Phi Quyền Chính - Anarchism

Nhân Chủ-Chủ Quyền Cá Nhân Con Người-Thượng Đế, Nhà Nước là Ảo Thể- Chúng Ta là Thực Thể- Không có Thượng Đế, Không có Nhà Nước, Chỉ có Chúng Ta, Tôi và Quí Vị phải Quyết Định Phương Cách Tự Trách Nhiệm Trao Đổi để Sống Chung Tự Do, Bình Đẳng với Nhau Mà Thôi!

Nhận Định

Is the Stock Market Rigged?

PQC: What a silly question! Of course it is! and the usual culprit is your own government! Your protector! For fuck sake, Government does it all the time! Not just now this time!

-Look at what government has done to the Bitcoin! Their sheeples have been laughing “Government told you so, I told you so” …when Bitcoin crashed. Who are laughing now?

At any rate, Bitcoin will rise again as it is designed to be. As I said before, and again now that Government  can neither regulate nor destroy the Bitcoin, even if they ban it right now. Bitcoin will die only when people reject it for not performing its function as medium of exchange effectively and  efficiently. And that Bitcoin will die by its own shortcoming, namely its transaction verification process. If the transaction verification process will not improved by the time the total 21 millions bitcoins are mined,  the bitcoin system will collapse! 

Is the Stock Market Rigged? — Paul Craig Roberts, Dave Kranzler, and Michael Hudson

Is the Stock Market Rigged?

Paul Craig Roberts, Dave Kranzler, and Michael Hudson

On February 6 PCR asked if the Plunge Protection Team had stepped in and prevented a stock market correction by purchasing equity index futures. https://www.paulcraigroberts.org/2018/02/06/another-arrested-equity-correction-paul-craig-roberts/ Sure enough, the daily exchange volume chart shows an increase in futures activity on February 2 with sharp increases on Feb. 5th and 6th. Those are the days when the stock market averages were experiencing large point drops. So, ask yourself, would you purchase equity futures while experiencing cumultive stock market drops? One can understand shorting a dropping market, but not buying futures.

Unless this is what happened. Seeing the beginning of a correction, the Plunge Protection Team placed a futures bid just below the existing price. Traders saw the bid, recognized that the government was intervening to support the market, and the bid was front-run with the hedge fund algorithms automatically picking up the action.

Who but the Federal Reserve with its unlimited ability to create money would take the risk of buying futures in the face of a falling market. Moreover, such an infusion of money into the market does not show up in the money supply figures.

The futures purchases prevented margin calls and stop/loss orders in a heavily leveraged equity market that would have collapsed the market.

What are the pros and cons of this kind of intervention (which might have occurred also in May 2010 and August 2015)? By stopping a correction, the intervention prevented a pension fund collapse, both private and state. However, by propping up over-valued equities that the Federal Reserve’s quantitative easing created, the intervention rewarded over-leveraged speculative risk-taking and prevented price discovery. We still have an equity market whose values rest on record margin debt, stock buy-backs, and prices pumped up by money-printing. The problems waiting to come home continue to build.

The question is: can intervention prop-up over-valued, problem-ridden markets forever?

After today’s drop, we will see what happens tomorrow.

==

169cd-pcrsPaul Craig Roberts has had careers in scholarship and academia, journalism, public service, and business. He is chairman of The Institute for Political Economy. President Reagan appointed Dr. Roberts Assistant Secretary of the Treasury for Economic Policy and he was confirmed in office by the U.S. Senate. From 1975 to 1978, Dr. Roberts served on the congressional staff where he drafted the Kemp-Roth bill and played a leading role in developing bipartisan support for a supply-side economic policy. After leaving the Treasury, he served as a consultant to the U.S. Department of Defense and the U.S. Department of Commerce.

Michael Hudson is President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City and author of J is Junk Economics (2017), Killing the Host (2015), The Bubble and Beyond (2012), Super-Imperialism: The Economic Strategy of American Empire (1968 & 2003), Trade, Development and Foreign Debt (1992 & 2009) and of The Myth of Aid (1971), amongst many others.

ISLET engages in research regarding domestic and international finance, national income and balance-sheet accounting with regard to real estate, and the economic history of the ancient Near East.

Michael acts as an economic advisor to governments worldwide including Iceland, Latvia and China on finance and tax law. He gives presentations on various topics at conferences and meetings and can be booked here. Listen to some of his many radio interviews to hear his hyperspeed analysis of the geo-political machinations of global economics. Travel costs and a per diem are appreciated.

Sector Expert: Dave Kranzler

Investment Research Dynamics

Image: Dave  Kranzler

Dave Kranzler spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, he traded junk bonds for Bankers Trust. He earned a master’s degree in business administration from the University of Chicago, with a concentration in accounting and finance. He writes a blog to help people understand and analyze what is really going on in our financial system and economy: investmentresearchdynamics.com.

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