Replies to post #77955 on Zeev's Turnips Patch-No Politics (ZEEV)

[Dances-W-waves]

Maybe its our SS money their investing........DOH!!!

[Joe Stocks]

>>>Thing is, if it actually is profitable, there is no reason for them to ever stop, as Mlsoft is waiting for them to do.<<<

One of the main reasons it works so well is that it is an orchestrated effort by the Fed where everyone wins (the players that is- not us little guys). The PPT main goal is to avoid panic. I think that they feel that they have had some level of success even when the the market goes down in orderly fashion. If you read some of the white papers after 1987 you will see that there was great concern about another 1987 type crash. Much was written on how to avoid it. It wasn't so much about the markets going down but more on how they went down. Of cousre now they also have to be concerned about the world economy. I'm sure the thinking is, "if we can only keep this together until the next recovery".

The reason they may stop is that they could get to a point where their intervention may become counter productive. Once the Fed as the "conductor" drops out, the others are left to their own devices. This would mean more risk to them. That may give them pause or reasons to curtail their operations. Like Mlsoft, I think their must be some limit to how much the Fed can continue to intervene. We just don't know where that limit is.

Joe

[mlsoft]

Public Heel....

When used as originally intended, the PPT/Fed interventions should end up profitable in almost all cases. That is because they normally go into the market only at times when the market is tanking and very oversold and thus are able to spook a large enough rally to induce serious short covering - in that type of market the short position should always be large. As the short covering takes over from the intervention and some mo-mo boys jump in, there is plenty of time for the firms that did the intervention to ease out of their inventory at a nice profit.

What they are now doing is not likely to be bringing much, if any, profits and is probably losing well more than it is making, especially on days like today. Unlike before, they are now jamming even into overbought markets with fewer shorts which means that the minute they let up with their buying the stocks begin sliding right back down and if they were to try to unload their inventory the pace of the selloff would more than negate their earlier buying. I suspect that inventories are beginning to get pretty large in some issues, and today brought on some pain for them.

Just gotta keep those printing presses running though - talk about deep pockets.

mlsoft