"When you say AG is driving this market is he in the market buying stocks? What is he buying/doing to support this rally? Can he put pressure on the big trading houses to buy?"
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Bandito....
Yes, I believe AG does buy individual stocks and futures, but generally limits himself to a relatively small group of important tech leaders and key index stocks.
He also is supporting the rally through support buying during selloffs and by aggressively expanding the money supply, adding huge amounts of liquidity into the system. Since the demand for new loans is basically stagnant, much of that money is finding its way into various markets rather than into the general economy, and that is exactly what he wants. There are other, more general ways he influences the markets such as through "jawboning" (telling the street and the public what he wants them to believe to get confidence up), massaging government reports, managing the $USD (in conjunction with the Treasury Dept) and probably Gold, giving psychological support by virtue of policy statements and Fed white papers (like the "Greenspan put" and the Bernanke statements) and of course by setting overall extremely loose monetary policy.
Finally, yes, he can and does put pressure (and give inducements) to the major trading firms to buy the markets.
Just my opinions, though.
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