Does anyone know about or have articles/links about central bank (or other MASSIVE private fund) computer buying to "prop" up the stock market?

It's obvious that there are such "beasts". Big computer, tied to the stock exchanges and other money databases - with the computing power and limitless financial backing to push up or down key stocks.

In other words: Play the market like a yo-yo.

Does anyone have any text on the subject?

----

By the way, if Sharper Image has one in it's catalog, let me know. Sounds like just the thing to make some money on a whim!

-- Inquisitive (bank@home.com), October 16, 1999

Answers

Inquisitive,

Just a few questions:

Is it legal for the Fed to trade stocks?

What private fund is large enough to move the market?

Why do you think there is a conspiracy here?

I'd be interested in reading the evidence.

-- mike (maples@voy.net), October 16, 1999.

If it's being done by a computer....."Stand By"!

-- Larry (Rampon@cyberramp.net), October 16, 1999.

Well, not sure if this is exactly what you're looking for, but I came across this one last night. Just a few weeks before a terrible earnings announcement the CEO of Corel dumped $20 million of his personal shares onto the market. Some poor suckers bought them for them for an average $8.50 a share and a few weeks later they lost 40%, down to $5.35.

The fleecing of the average investor by those with the inside track

I'm fairly certain that this type of "playing the market like a yo- yo" by many of these CEOs is quite common. Although it is illegal, most of them are getting away with it, particularly in large companies where the effect on the value of overall shares would be less obvious. Just think how much more profits the average investor would be earning if he didn't have to play with these sharks taking the biggest cut out of the action.

-- @ (@@@.@), October 16, 1999.

Search, PPT Plunge protection team

-- friend (w@n.d), October 16, 1999.

Thanks friend,

plunge protectors

-- @ (@@@.@), October 16, 1999.

Let's see... the 1987 Black Monday was October 19 and this one will be October 18, 12 years almost to the exact day... weird. Yeah, these plunge protectors have been real busy the last few days trying to stabilize the markets to prevent runs on the banks. When I was watching the ticker for the last hour before close Friday, it was like every time it started to sink down toward the 10,000 level it would spring up 30 or 40 points, and then start sinking again. I got the weird feeling that maybe Greenspan or somebody was intentionally manipulating it somehow so that it would not stay below 10,000 which is a very psychologically significant barrier. They managed to keep it up just barely above when it finally closed. I wonder if Greenspin was on the horn with the head NYSE and SEC guys and they decide to use Treasury Reserves to keep it afloat. I wouldn't be at all suprised.

-- @ (@@@.@), October 16, 1999.

They've been doing it to gold and silver for 20 years...

The DOW[N] is child's play.

-- Andy (2000EOD@prodigy.net), October 16, 1999.

I don't think anyone will ever know for sure without litigation. And I think the FED is unlikely to let that happen.

The thing that struck me about Greenspan's comments was the idea that downturns happen and are part of normal activity. It was as if he were saying the downturn is here but don't expect me to bail you out. Monday could be very interesting. All of those investors with an entire weekend to think the situation through. And no promise to prop up the market by the guy that runs the show.

Behind the scenes, he's probably flappin like a hummingbird.

Manipulation? Take a look at the chart on Kitco.com

Thats a pretty big drop Thursday just before the market closed. How do you do that so fast? Computerized trading? Who did that? Can we ask and expect an answer?

Can the FED be called to answer for their actions? Does anyone have the authority to even ask them and expect an answer?

Mr. Greenspan doesn't strike me as a dumbass. The market in general is too big to fail. Of course, you have to define "fail." A "normal turn of events" and "recovery" could make everything hunky dory. But, it does make a case for not putting our Social Security Trust Fund into the market...

-- Lead Mouse in the Wall (greytek@hotmail.com), October 16, 1999.

Forgot the http:// - sorry...

Kitco.com

-- Lead Mouse in the Wall (greytek@hotmail.com), October 16, 1999.

I agree, it does not make a case for putting the SS fund in the stock market.

-- Paula (chowbabe@pacbell.net), October 16, 1999.

When you consider that there are many, many, investors, that the opinions of investors, just like the opinions of other people, change from time to time, but not all in the same direction, or by the same amount, or at the same time, it would seem astonishing if we did not, from time to time, see such trading activity as occurred yesterday. If there is anything puzzling about it, it is: why do people need to conjure up some weird explanation for something that should be expected to occur from time to time in the ordinary course of trading?

Jerry

-- Jerry B (skeptic76@erols.com), October 16, 1999.

They do it with bungee cord.

dave

-- davve (wootendave@hotmail.com), October 16, 1999.