
Originally Posted by
Melonie
^^^ essentially, the 'primary dealer' financial houses are able to manipulate the stock and bond markets to at least the same degree that ENRON was able to manipulate the western grid electricity market. There are two key differences though. #1 they have done so under the 'blind eye' of the SEC and with the tacit approval of the US Fed, and will continue to do so as long as their objective results in a levitation the US stock market and depressing the price of gold. #2 if they get overextended on their manipulations they have a de-facto guarantee from the US Fed and US Treasury that a limitless pool of US taxpayer dollars will be deployed to continue the levitation of US stock markets to stave off their losses (or at least allow for an orderly retreat). There's even a #3 in that mainstream financial media continues to report a 'rose colored glasses' view of the major financial houses, whereas mainstream financial media went into attack mode re ENRON. And actually there is a big #4 as well ... ENRON's off balance sheet obscuring of bad debts was considered to be illegal and was vigorously prosecuted, whereas big financial houses obscuring of bad debts is not only considered to be legal, but the US Fed just helped the financial houses to organize a Structured Investment Vehicle SuperFund for the express purpose of perpetuating the off balance sheet status of the big financial houses' toxic mortgage / subprime CDO's !!!
Unfortunately, with today's nearly 50% ownership of US stocks and bonds in the hands of foreign investors and anonymous hedge funds, there is IMHO a very real possibility that investor money could be suddenly drained from the US stock and bond markets in a manner so abrupt that the Fed couldn't print new electronic dollars fast enough to stave off the resulting market decline.
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