Is the plunge protection team at the NY Fed and Treasury behind the US markets sudden recovery after plunging 10%?
Who was buying all the stock? How come it was the amount of stock needed to equalize the loses and bring the market up 10% and stablize it?
Was the well known plunge protection team at work again?
"Mysterious forces were trying their best, but they couldn’t keep the stock market from swooning Wednesday.
They failed in the morning, despite massive purchases of stock index futures contracts. Within minutes of the market’s opening, the Dow Jones industrial average was down 350 points. Later in the day — after a lot of shocking ebb and flow — the Dow bottomed out with a decline of 460 points.
It was only in the last hour of trading that the market saviors managed to trim the Dow loss to just 173 points. And they succeeded only after Janet Yellen’s private, upbeat remarks about the economy were leaked.
Welcome to a new kind of stock market — one that the average investor should refuse to be invested in," wrote the NY Post in 2014.
They were talking bout the plunge protection team whichwas sent in by the government and Fed to buy up stocks after the markets slid.
https://nypost.com/2014/10/20/plunge-protection-behind-markets-sudden-recovery/
It was under Donald Trump that the plunge protection team s purchases of stock skyrocked to 682 billion to "stabilize the stock market."
Trump and his Soros crony Bessent are also promoting cryptos as a safe haven and alternative to the dollar whhen Bitcoin and Stablecoin etc are the ultimate Ponzi scheme.
Will any plunge protection team start buying bitcoin secretly to inflate the price?
https://www.mmnews.de/bitcoin/233801-was-muss-passieren-damit-bitcoin-1-mio-usd-wert-wird
From media
But thanks to a fancy maneuver by President Donald Trump’s Treasury Secretary, Steve Mnuchin, the ESF skyrocketed to a staggering balance of $682 billion as of September 30, 2020.
Mnuchin was able to give himself this massive slush fund by helping to write the 2020 stimulus bill known as the CARES Act, which handed him $500 billion. The language in the bill said that Mnuchin was to provide $454 billion of the $500 billion to the Federal Reserve to create emergency lending facilities to support the economy during the pandemic. But all Mnuchin ever provided to the Fed was $114 billion. He kept the rest in the ESF. We know that because the Fed has confirmed to us that all it ever received was $114 billion and the Fed’s own financial statements also confirmed that. The official financial statements of the ESF confirmed that it received the full $500 billion from the CARES Act. In addition, this information was confirmed by the Congressional Research Service on December 17 of last year.
The Exchange Stabilization Fund is governed by Section 5302 of Title 31 of the U.S. Code. It provides the U.S. Treasury Secretary with the following authorities:
“Subject to approval by the President, the fund is under the exclusive control of the Secretary, and may not be used in a way that direct control and custody pass from the President and the Secretary. Decisions of the Secretary are final and may not be reviewed by another officer or employee of the Government.
“…the Secretary or an agency designated by the Secretary, with the approval of the President, may deal in gold, foreign exchange, and other instruments of credit and securities the Secretary considers necessary.”
Since stocks and bonds are “securities” in which the Treasury Secretary is allowed to intervene, Janet Yellen now sits atop her own Plunge Protection Team.
Since a trading floor at the U.S. Treasury Department might raise some eyebrows, it’s all been handled quietly for years at the trading desk of the New York Fed – photos of which the New York Fed refused to provide to Wall Street On Parade. We obtained our own photo, shown above, from a Fed educational video that provided a brief glimpse of the trading floor.
https://wallstreetonparade.com/2021/03/janet-yellens-plunge-protection-team-has-142-billion-to-play-with/
Investors who remember the lessons of the dot com bubble when the NASDAQ crashed 80% in two waves will be wary of investing in stocks when US economic fundamentals are so weak and set to get worse due to Trump s misguided tariffs, trade policies.
https://www.zerohedge.com/market-recaps/futures-slide-after-mondays-historic-retail-driven-rebound
Countries have little incentive to give the failing USA good trade deals when they know Trump and Bessent need any trade deal desperately to avoid an econmic meltdown, empty shelves, soaring inflation, a stock market crash. And prison for economic malpractice.
Trump s reputation as a competent economic manager is now in tatters.
His courtier in the alt media, Alex Jones and Steve Bannon and ZeroHedge, cannot spin the disaster he has caused as a victory no matter how they lie and twist the facts.
They cannot spin the market meltdown as a plot to derail Trump. Trump derailed the US economy with disastrous decisions.
Jamie Dimon, meanwhile, has been warning about risks from inflation and credit spreads to geopolitics. “The market came down 10%, it’s back up 10%; I think that’s an extraordinary amount of complacency.”
Complacency is what Dimon is showing by not leveraging his power and money to put the oligarchy in prison and renationaliz the Fed to bring back sound money, the only thing that can rescue the USA and Dimon.
Recall covid came just in time to save Wall St, which was kept alive using emergency repo ops in 2019 receiving trillions from the Fed in secrecy.
Dimon has got big problems on his hands as a big winner of the private central banking fraud. He should be under no illusions about his future if the USA sinks and Russia and China expand their influence into the USA.
https://wallstreetonparade.com/2021/03/janet-yellens-plunge-protection-team-has-142-billion-to-play-with/
The Fed’s emergency repo loan operations came months before the COVID-19 virus had emerged in China or anywhere else in the world. That strongly suggests to us that Wall Street megabanks had a serious problem independent of the virus outbreak.
Mainstream media refused to cover the repo loan bailouts in any depth, and censored the details when the Fed was forced under law to reveal that it had, once again, funneled trillions of dollars in revolving loans to Wall Street in the fourth quarter of 2019 and beyond.
The Fed’s multi-trillion-dollar emergency bailout programs from 2008 were reactivated again for the COVID-19 pandemic in 2020, marking the third massive bailout of Wall Street by the Fed in a dozen years. This is unprecedented in the 111-year history of the Fed, meaning the financial system of the U.S. is dramatically on the wrong course.
Does he think he can thrive outside the USA? Or even survive in a genuinely free market where the money is printed by the government giving businesses a level playing field and business leaders need talent, brains, integrity?
Where does he think he is going to go in a globe dominated by Russia and China with his record?
...
Meanwhile, the threat of US tariffs showed up in Chinese shipments of smartphones, which fell 72% in April, according to China’s customs data.
Ponder the impact on smartphones price of a sudden drop of 72% fewer smartphones from China.
Those who have put their faith in AI and the Mag& should remember the ChatGPT debacle and Tesla s vanishing market.
Tech has been the main driver of the recent market bounce and will remain in focus into next week’s key earnings release from Nvidia. Google is holding its I/O developer conference, with the keynote speech at 4:30 pm ET. Broader deployment of AI mode on Google search will be a big focus, Bloomberg Intelligence said.
US equity futures are weaker with Tech underperforming, threatening a six-day winning streak that propelled the S&P 500 to the brink of a bull market. Then again, Monday started off even worse and then we saw the biggest burst of retail buying on record resulting in one of the biggest intraday reversals in recent history (according to JPM, more here), so brace for more unexpected moves. As of 8:00am ET, S&P futures are down 0.2%, while Nasdaq 100 futs drop 0.3% with Mag7 stocks mixed amid weakness in semis into today’s Google I/O developer conference; healthcare is leading Defensives over Cyclicals. The yield curve is twisting steeper with the 10Y yield flat and USD weakening. Commodities are mixed with crude down, natgas up, base metals down, precious up, and Ags generally higher. Macro data is light, with just the Philly non-mfg PMI on deck ahead of Thursday’s Flash PMIs & Claims prints, but we have another round of Fed speakers where the message continues to be patience.
https://www.zerohedge.com/market-recaps/futures-slide-after-mondays-historic-retail-driven-rebound
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