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AFKA ZealYouthGuy
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Discussion Starter · #1 ·
the blue chips and one what specific days?

Specifically I want to know how MUCH stock (both dollar and volume) they bought and which companies.

The way the market is down almost daily, I can't imagine what it would be if the Fed weren't buying up stock.
 

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I don't know if the fed buys any directly. i believe the investment banks have always used borrowed money to invest in the stock market. (formerly via banks, but now that they've converted into banks themselves, probably borrow directly from the fed.)

also, they probably buy futures, which require only a small amount of money as collateral for each contract, instead of the full price. Hence, a small amount of money can go a long way.

but whatever they buy, they still need to sell at some point at a profit to pay back the loan. They can game the system for the short term, but they can't control it over the longer run.

(big players manipulating the market short term is an old game. read "reminiscenances of a stock market operator", written about jesse livermore, who traded the stock market in the 1920's.)

--sgl
 

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Question . . . how is it that Bloomberg is reporting $2 trillion has already gone out or been spoken for, but now the news is there won't be any purchasing of troubled assets, they'll be buying up stock instead in companies that can match funds by raising private funds?

Confusion reigns.
 

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AFKA ZealYouthGuy
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Discussion Starter · #6 ·
I have a feeling that we won't know until something truly ground shaking happens and then those who support the government bailouts will point to some obscure publication somewhere and say... "Well it wasn't a secret..."
 

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Here is a post I put on another forum... I thought it was quite funny.


What is a silk T.A.R.P. with little strings attached?

A parachute....
 
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