"The government is admitting it is rigging the market"

“The government is admitting it is rigging the market.” Who’s doing the buying in the stock market, everyone has been asking. We now know. It’s the government, who’s been printing the money out of nothing. When the printing stops and this all comes crashing down, well…

From Zero Hedge:

After Nearly Two Years Of Searching, TrimTabs Still Can’t Figure Out Who Is Buying Stocks
Submitted by Tyler Durden on 12/23/2010 18:05 -0500
A year after Charles Biderman’s provocative post first appeared on Zero Hedge, in which he asked just who is doing all the buying of stocks as the money was obviously not coming from retail investors (and came up with one very notable suggestion), today Maria Bartiromo invited the TrimTabs head once again (conveniently in CNBC’s lowest rated show, during Christmas Eve eve, at a time when perhaps 5 people would be watching) in an interview which disclosed that after more than a year of searching, Biderman still has no idea who actually buying. In response to Bartiromo’s question if the retail investor, who left after the flash crash (thank you SEC), Biderman responds what every Zero Hedger has known for 33 weeks: “Retail investors are not coming back to the US. Those investors that are investing are buying global equities and are buying commodities. We are seeing lots money going into commodity ETF funds: gold, silver…” and the even more unpleasant summation: “individuals have been selling, companies are net selling, insider selling and new offerings are swamping any buyback and any cash M&A activity since QE 2 was announced. Pension funds and hedge funds don’t really have that much cash to invest. So what nobody’s asking is what happens when QE 2 stops: if the only buyer is the Fed, and the Fed stops buying, I don’t know what is going to happen…When I was on your show a year ago I was saying the same thing: we can’t figure out who is doing the buying it has to be the government, and people said I was nuts. Now the government is admitting it is rigging the market.” Cue Bartiromo jaw dropping.

You can expect market rigging like this from a criminal organization. That criminal organization is called our federal government.

Much more CNBC non-grata truthiness in the full clip, in which Biderman suggest what Zero Hedge readers realized over a month ago, that in June QE3 will likely have at least a partial municipal bond focus.

More printing! We have to save the states and their bloated union contracts!

Wall Street had record bonuses this year. I work so incredibly hard to make a single dollar. It’s all printed money behind the bonuses. The thieves make out like bandits. Remember how I lost a ton of money on Lehman Brothers (recommended to me by my stockbroker)? You know how many Lehman Brothers people have gone to jail? Nobody!

One comment:

by The Profit Prophet
on Thu, 12/23/2010 – 20:06
One of the FED govenors (I forget which one) was interviewed on CNBC just after the QE2 announcement, and he admitted that one the nice “side-effects” of QE was it’s postive effect on the equity markets….and that this was one of the arguments around the table in support of proceeding with QE2. That’s about as clear an admission of market manipulation that you are going to hear from any FED member…..although nothing would surprise me at this point. Once QE33 fails, perhaps Ben’s last ditch survival strategy will be to guarantee all future market losses…..hmmmm

Another comment:

by Cheesy Bastard
on Thu, 12/23/2010 – 18:29
Heh Heh Heh! Fed buying all the stocks, treasuries, munis, and chevy volts. Yeah, this will end well!

Another comment:

by inkt2002
on Thu, 12/23/2010 – 18:39
Because the answer is obvious. When QE2 stops, QE3 begins. The FED will never stop buying.

Another comment:

by Shameful
on Thu, 12/23/2010 – 18:27
Wow just accept the market rigging and then commenting how it’s up and that’s good…

On my last MSNBC WATCH, I briefly discussed the story on last Sunday’s 60 Minutes:

Sunday’s 60 Minutes did a segment on “State Budgets: The Day of Reckoning.” It’s no secret that the states are running out of money. Even the New York Times has acknowledged the pension bomb in many, many stories. Even NYS Governor-elect Andrew Cuomo is gearing for a Chris Christie-like fight with the municipal labor unions. This is reality.

The Nation’s Chris Hayes substituted for Keith Olbermann and scoffed at the story, stating: “are DMV employees really making us bankrupt?” Hayes interviewed economist Dean Baker, who called the 60 Minutes story “overblown” and “a hoax.” I couldn’t believe my ears.

In today’s New York Post, it seems that the analyst in that 60 Minutes story is being attacked by the industry:

Whitney draws fire for muni meltdown forecast
Last Updated: 1:20 AM, December 24, 2010
Posted: 11:51 PM, December 23, 2010
The week’s smackdown of Wall Street analyst Meredith Whitney continued unabated yesterday as more naysayers came out to challenge the star analyst’s recent comments that up to 50 to 100 US cities could default on their municipal bonds over the next 18 months.

Matt McCall, president of Penn Financial Group, told Fox Business Network viewers that Whitney unnecessarily “spooked” the muni bond market.

The FBN comments followed mostly critical comments aimed at Whitney across cable business news, business blogs and newspapers. It is rare that comments by an analyst with such a strong record for being ahead of economic trends have received such constant, hostile fire.

In a segment called “The Day of Reckoning,” Whitney told “60 Minutes” viewers last Sunday that the growing financial constraints of Uncle Sam and state governments posed real hardship for the nation’s local governments and municipalities.

The program, which featured a spate of worried local and state politicians, showcased Whitney predicting “sizable defaults” in 2011 that could amount to “hundreds of billions of dollars” in failed municipal debts.

Maybe MSNBC will stop touting Obama’s big “victories” and Nancy Pelosi’s big “victories” and “the most productive Congress ever” and acttually report that we’re in deep, deep financial trouble.

Whitney’s big scares:
* 50-100 cities and towns will likely default next year.
* Estimated debt load of cities & states: $2.8T.
* New Jersey is in a three-way tie for No. 2 on her worst states list.

If you missed Thursday’s Rachel Maddow Show on the MSNBC “news” network, you missed Day Two of “Haley Barbour is a racist,” neatly broken up into segments one and two. Half her show, talking about the civil rights struggle of 45 years ago.

The issues of our time–the lack of jobs, the falling housing market, the bankrupt states, and the printing of money–these are not sexy enough for MSNBC to tell you about as to attacking Republicans.

Maddow had “Nobel prize-winning economist” Paul Krugman on her show the other day, live from the 92nd Street Y. I have never found Krugman especially coherent on anything. Krugman’s answer is that the last stimulus wasn’t big enough, we need a lot more stimulus! Why, if we just had a few thousand more turtle tunnels, everything would be OK!

The Fed is printing money to prop up the stock market. Soon, it will be printing money to prevent municipal bond defaults.

This does not end well.