As a synopsis to my earlier post, there was an executive order from the president to create the “Working Group on Financial Markets” which was tasked with “maintaining investor confidence. The mandate was given after the crash of 1987 and there have been many whispers that the Working Group on Financial Markets (AKA Plunge Protection Team) has stepped in to buy S&P 500 futures to support the market at times of distress. It really makes quite a bit of sense for the fed to manipulate stock markets because the confidence impact would be large and the dollar amounts that the Federal Reserve would have to put at risk would be minimal compared to all of the TARP related support out there. Besides, they already manipulate just about every other market in existence right now so what would stop them rom going after stocks. Japan is doing it and they probably were not the first to come up with the idea… Without further interruption, I have attached a rather amusing video of one of the few outspoken and against the grain politicians that is asking for an audit on the Federal Reserve.
On Friday, September 25th, Alan Grayson questioned(badgered) the General Counsel of the Federal Reserve about whether the Federal Reserve has purposefully manipulated the stock market. He did not get much of a response out of his victim, but for anyone who analyzes body language I would love to hear an evaluation on this guy…
