Central Bank balance sheets expanding again, same time as stocks went back up

[devil21]

CBs are back to buying via QE and even the FRB's already-ridiculously-slow-roll-off slowed a bit. The stock market bounce is purely coincidence, I'm sure, while the BOJ, ECB, PBOC and probably the FRB and others start buying again. They seem terrified to pull the curtain back and let the market show that it's all been QE fakery since 2008/09.

https://www.zerohedge.com/news/2019-...ks-are-surging



The manipulation is well coordinated. A CB and/or PPT starts buying during the day and at the same time some headline is rolled out across the DJ Newswire to trigger the algos to jump aboard and buy and hide the CB manipulation. The headlines are false cover stories. This afternoon was a perfect example. Markets hung around no gain all day then spiked straight up on a DJ Newswire headline about lifting tariffs on China. It's a BS headline to cover backdoor CB/PPT buying. Sometimes they cart out Kudlow or Mnuchin or some other jawbone to create the Newswire headline, since they are also the same people that know exactly when the PPT is activated.

[Zippyjuan]

The Fed does not own any stocks. They are prohibited by law from doing so. They have been reducing their balance sheet since October 2017.

[devil21]

The Fed does not own any stocks. They are prohibited by law from doing so. They have been reducing their balance sheet since October 2017.

https://www.investopedia.com/terms/p...ction-team.asp

DEFINITION of Plunge Protection Team - PPT

The "Plunge Protection Team" (PPT) is a colloquial name given to the Working Group on Financial Markets. The PPT was originally created to provide financial and economic recommendations in the wake of turbulent market times. Members of the team are the Secretary of the Treasury, the Chairman of the Board of Governors of the Federal Reserve, the Chairman of the Securities and Exchange Commission and the Chairman of the Commodity Futures Trading Commission.

[Zippyjuan]

https://www.investopedia.com/terms/p...ction-team.asp

Read that again. Carefully. Does not say they can or do buy stocks. The PPT is an advisory board. They don't run out and by $billions in stocks every time the market goes down.

DEFINITION of Plunge Protection Team - PPT

The "Plunge Protection Team" (PPT) is a colloquial name given to the Working Group on Financial Markets. The PPT was originally created to provide financial and economic recommendations in the wake of turbulent market times. Members of the team are the Secretary of the Treasury, the Chairman of the Board of Governors of the Federal Reserve, the Chairman of the Securities and Exchange Commission and the Chairman of the Commodity Futures Trading Commission.

You left some other things off too.

BREAKING DOWN Plunge Protection Team - PPT

The name PPT was coined by The Washington Post in 1997. Although the team had a viable purpose when initially created, conspiracy theorists suspected that the team was created to shore up, or even manipulate, the markets. Some suspected that the team could executing trades on several exchanges and manipulate the markets when they were heading downward. The team was believed to collaborate only with big banks such as Goldman Sachs and Morgan Stanley, to report only to the President, and to keep no records of trades.

In 1989, the then President, Ronald Reagan, created the President’s Working Group on Financial Markets after two stressful events, the stock market crash in 1987 and the near-crash in 1989. The group acted as an advisory group on the markets for the president and regulators

https://www.cnbc.com/2016/09/30/shou...t-experts.html

Should the Fed start buying stocks? Not according to these market experts

While the Federal Reserve appears to be floating the idea of buying equities in the future, two market experts told CNBC on Friday that they have concerns about such a plan.

Russ Koesterich, head of asset allocation for BlackRock's Global Allocation Team, said the Fed is clearly trying to convince investors it is not out of bullets.

"I get that because there's concern about what will happen when we do get another recession with rates where they are," he said in an interview with "Closing Bell."

"The problem is if the Fed starts to buy stocks, what is the mechanism by which that's going to help the real economy?"

On Thursday, Fed Chair Janet Yellen told bankers in Kansas City that the central bank might have the ability to help the U.S. economy in a future downturn if it could buy stocks and corporate bonds.

"It could be useful to be able to intervene directly in assets where the prices have a more direct link to spending decisions," she said.

Right now, the Fed is barred by law from buying corporate assets.

[devil21]

Read that again. Carefully. Does not say they can or do buy stocks. The PPT is an advisory board. They don't run out and by $billions in stocks every time the market goes down.

Who, exactly then, are they advising and on what, exactly, are they advising?

You left some other things off too.

Of course, crazy conspiracy theory. Riiiiight. Is the ESF a conspiracy theory too? You know, that giant slush fund that's expressly for the purpose of buying and selling securities under the direction of the PPT, which includes the FED. You'll have to try that nonsense on someone that doesn't understand that the Fed and Treasury are currently the same entity, only separated on paper.

https://www.cnbc.com/2016/09/30/shou...t-experts.html

Laws! Like they care one iota about laws, especially when Open Market Operations are not audited and not subject to public disclosure. And even if they did follow such a law, a quick call to another central bank to do the buying instead (ahem, balance sheets expanding again) isn't a separation except on paper.

[Zippyjuan]

Who, exactly then, are they advising and on what, exactly, are they advising?



Of course, crazy conspiracy theory. Riiiiight. Is the ESF a conspiracy theory too? You know, that giant slush fund that's expressly for the purpose of buying and selling securities under the direction of the PPT, which includes the FED. You'll have to try that nonsense on someone that doesn't understand that the Fed and Treasury are currently the same entity, only separated on paper.



Laws! Like they care one iota about laws, especially when Open Market Operations are not audited and not subject to public disclosure. And even if they did follow such a law, a quick call to another central bank to do the buying instead (ahem, balance sheets expanding again) isn't a separation except on paper.

Again, please read your own link more carefully. All of what you are criticizing is from your own source.

The group acted as an advisory group on the markets for the president and regulators

[devil21]

Again, please read your own link more carefully. All of what you are criticizing is from your own source.

So it's the President and regulators buying securities through the ESF? If not, then what exactly are they advising the President on?

[Zippyjuan]

Read that again. Carefully. Does not say they can or do buy stocks. The PPT is an advisory board. They don't run out and by $billions in stocks every time the market goes down.

So it's the President and regulators buying securities through the ESF? If not, then what exactly are they advising the President on?

Sigh. The Plunge Protection Team. (The ESF does't buy securities either but may engage in currency swaps with countries to balance exchange rates). I guess you have some troubles with reading. But I don't hold that against you.

The President can buy stocks for his own personal investments but does not buy them for they country or anybody else. Regulators can likewise make personal stock purchases but do not buy stocks for the government or to try to manipulate the market.


https://www.investopedia.com/terms/e...zationfund.asp

Exchange Stabilization Fund (ESF)

What is the Exchange Stabilization Fund (ESF)

The Exchange Stabilization Fund (ESF) is a U.S. Department of Treasury emergency reserve fund which includes holding of U.S. dollar (USD), other foreign currencies, and special drawing rights (SDR) funds. These funds allow the Treasury to intervene in the foreign exchange (FX) marketplace to promote stability in both foreign and domestic currencies.

Under direct authorization by the Secretary of the Treasury, the use of ESF can buy or sell foreign currency and help with financing foreign governments. Interventions in the FX market began in 1934 and 1935. Since that time, the Exchange Stabilization Fund assisted in many loans to governments and central banks.

More details on what they can do: https://www.treasury.gov/resource-ce.../finances.aspx

[devil21]

(Assuming for a moment the laughable notion that these people and the funds they control only do what is authorized by law)

So, the question then becomes, how does a Plunge Protection Team protect against plunges if all they do is engage in currency swaps and advise people that don't and can't actually do anything about a plunge? What's the point of even having it then? Why would Trump "activate" such a group right before Dow shot up 1000 points and has risen ever since if they aren't actually engaging in any action?

[Zippyjuan]

So, the question then becomes, how does a Plunge Protection Team protect against plunges if all they do is engage in currency swaps and advise people that don't and can't actually do anything about a plunge? What's the point of even having it then?

Are you being serious- or are just easily confused?

[devil21]

Are you being serious- or are just easily confused?

I added a bit to my post but yes I am being serious. You're saying that the PPT has no power to actually do anything so why does it exist?

[Zippyjuan]

I added a bit to my post but yes I am being serious. You're saying that the PPT has no power to actually do anything so why does it exist?

They have only met a few times in their history. No- they don't have any actual powers. Their actual name is "The President's Working Group on Financial Markets".

https://www.reuters.com/article/us-u...-idUSKCN1ON0WG

The Working Group dates to March 1988 when Washington was still trying to figure out what was behind the “Black Monday” stock market crash of October 1987. Then-President Ronald Reagan created the group to find ways to keep financial markets operating smoothly. The group also met in 2008 during a profound financial crisis and issued recommendations for overhauling banking regulations and rules on mortgage lending. The group, however, does not always meet during a crisis. In 1999, the group issued a report asking Congress to change laws on derivatives markets.

[devil21]

So what do they "Work" on, then?

Any way, this has been a fun exercise but one only had to see how Trump told everyone that the PPT was being activated and then the markets went straight up, while CB balance sheets expanded again at the same time, which indicates buying of assets. Such a fake and manipulated "market".

(And LOL@people that work within city blocks of each other have only met a few times in history....)

[Zippyjuan]

So what do they "Work" on, then?

Any way, this has been a fun exercise but one only had to see how Trump told everyone that the PPT was being activated and then the markets went straight up, while CB balance sheets expanded again at the same time, which indicates buying of assets. Such a fake and manipulated "market".

(And LOL@people that work within city blocks of each other have only met a few times in history....)

How much did central bank balance sheets increase that week? How much do Central Banks hold in US stocks? Japan's central bank does buy Japanese stocks but not American stocks. The Fed does not buy any stocks (not allowed to do so by law). The Fed has been reducing their balance sheet. It would take $billions to force the US stock market up 1000 points (5%) in one day if it really wanted to go down. It would be extremely hard to hide that volume of transactions.

[devil21]

How much did central bank balance sheets increase that week? How much do Central Banks hold in US stocks? Japan's central bank does buy Japanese stocks but not American stocks. The Fed does not buy any stocks (not allowed to do so by law). The Fed has been reducing their balance sheet. It would take $billions to force the US stock market up 1000 points (5%) in one day if it really wanted to go down. It would be extremely hard to hide that volume of transactions.

Luckily, the SEC has been non-operational so no investigation or reporting possible. Oh wait, the SEC is part of the PPT too. All bases covered.

[enhanced_deficit]

I dunno, while PPTs might be real, markets are not like polls and probably not as easy to manipulate for politicians or Wall Street insiders with small bags of money.
Also, don't think fake electronic money is allowed to move markets for political or other agendas.

Un-Related

Liberty U. Senior Official Accepted Bag of Money for Helping Trump in Online Polls, Report Says

By Lindsay Ellis January 17, 2019
President Trump’s former top lawyer paid Liberty University’s chief information officer to manipulate online polls in an effort to raise Trump’s profile before his successful presidential campaign, The Wall Street Journal reported on Thursday.