augieboo's PPT Archive

[Joe Stocks]

PPT- Mauldin is wrong. From SI.
To:mishedlo who wrote (233737)
From: UnBelievable Saturday, Apr 5, 2003 4:22 PM
View Replies (1) / Respond to of 233759

He Is Either Misinformed or Misinforming
The feat of misdirection that Mr. Mauldin has either fallen victim to, or is attempting to victimize his readers with, is the assumption that the PPT is hidden and secret. Such is not the case. It is hidden in the best hiding place of all, right out in full view.

He need only look as far as the Federal Reserve Bank of New York's Trading Desk, and then "follow the money".

As to arbitrage and program trading being why it couldn't work that exactly how it works. When the futures are bid up over fair value it causes the program trading firms to buy the market and sell the futures. This is exactly how and why the market goes up when the futures are bid up.

As to costing billions what does he think is done with the billions of dollars that the Fed creates each day through RP's.

The Trading Desk At The NY Fund Is the enabler and co-conspirator with the banksters (primary dealers) whose traders it is that place the trades which move the futures.

The traders who move the futures in ways consistent with the objectives of the Federal Reserve (particularly the FOMC) are employed by banks and securities firms recognized by the Federal Reserve Bank Of NY (FRBNY) as primary dealers.

The primary dealers are the organizations through which the Fed injects liquidity into the system when it engages in open market operations. Open market operations are one of the three ways in which the Federal Reserve implements monetary policy; the other two are determining the discount rate and determining reserve requirements. http://www.federalreserve.gov/FOMC/

Open market operations, which are conducted on behalf of the Fed by the trading desk of the FRBNY, involve adding or reducing reserves into the system by trading in government securities. “Most often, the transactions the Trading Desk engages in are short-term repurchase agreements (RPs), which are used in situations that call for temporary additions to bank reserves. With RPs, the Desk buys securities from the dealers, who agree to repurchase them by a specified date at a specified price. When the RPs mature, the added reserves are automatically drained. http://www.newyorkfed.org/pihome/fedpoint/fed32.html

RPs give the primary dealers cash that they use to influence the functioning of the markets. “At the New York Fed's Trading Desk, the staff starts each workday by gathering information about the market's activities from a number of sources. The Fed's traders discuss with the primary dealers how the day might unfold in the securities market and how the dealers' task of financing their securities positions is progressing.” (same as prior link).

So basically each day the trading desk coordinates the collusion between the major banks and securities brokerages (collectively “Banksters”) concerning the direction of the stock market.

Currently the primary dealers are:

ABN AMRO Incorporated
BNP Paribas Securities Corp.
Banc of America Securities LLC
Banc One Capital Markets, Inc.
Barclays Capital Inc.
Bear, Stearns & Co., Inc.
CIBC World Markets Corp.
Credit Suisse First Boston Corporation
Daiwa Securities America Inc.
Deutsche Bank Securities Inc.
Dresdner Kleinwort Wasserstein Securities LLC.
Goldman, Sachs & Co.
Greenwich Capital Markets, Inc.
HSBC Securities (USA) Inc.
J. P. Morgan Securities, Inc.
Lehman Brothers Inc.
Merrill Lynch Government Securities Inc.
Mizuho Securities USA Inc.
Morgan Stanley & Co. Incorporated
Nomura Securities International, Inc.
Salomon Smith Barney Inc.
UBS Warburg LLC.

http://www.ny.frb.org/pihome/news/opnmktops/2002/an020401.html

Traders employed by these organizations then intervene (ramp) the markets using this cash in a manner intended to ensure that the market functions with the Feds objectives.

The actual “heavy lifting” is done when the program trading firms react to the fact that the futures are trading in excess of fair value by buying the market and selling the futures.

But keep in mind that the Fed determines its objectives based on the input it has received from these firms concerning the condition of the markets and the types of interventions which are needed to keep them functioning “smoothly”.

Peter Fisher, Under Secretary Of The Treasury For Domestic Finance – is the person who as “liaison” between the Treasury Department and the FRBNY especially with regard to its open market operations. Prior to being appointed to this postion by George W. he was the Executive Vice President of the Federal Reserve Bank of New York where he serves as the manager of the System Open Market Account for the Federal Open Market Committee. http://www.treas.gov/press/releases/po369.htm

If he has any questions I'm sure Peter can answer them.

As to the $100,000 reward he should keep it. Maybe he can use it to get himself one of those edjumacatons.