Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

".... the Fed buys no stocks and no bonds other than T-bills. If it did, it is required by law to disclose promptly such actions, just like it publishes promptly its trades in Treasury bills."
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KyrosL...

You are incorrect. First, your statement that the Fed does not buy other than T-Bills is not only historically incorrect, but Greenspan (and Bernanke) has promised that if necessary they will do so again to prevent deflation. A number of years ago, buying longer bonds was Fed policy, according to AG's own recent testimony.

My personal opinion is that you are equally incorrect about the Fed buying equities, and I am completely convinced that using direct or indirect means, they have bought both equities and futures many times in the past, especially in the aftermath of the LTCM, 09/11 and more recently at the July and October bottoms. I am equally convinced that they have been directly or indirectly intervening in the equities markets on a regular basis since the lows of early March to drive the markets ever higher.

One may disagree on how often and how much the Fed/PPT has intervened in the equities markets, but to deny that they do not do so at all is very naive, in my opinion.

mlsoft