“On a side bar. remember a couple of years ago, when I went on CNBC to talk to them about things that were happening in the markets in the afterhours that didn’t make sense, and looked like an ‘outside force’ was moving them? And they laughed at me, and told me to take my theory to Hollywood, and see if they would make a movie of it! And then a month or so later, a guy came out and proved my theory? Well. I have to believe that the rise of Gold and Silver, the rise of Treasury yields, and Oil, all being reversed on a dime, smells like PPT. it walks like PPT. and it talks like PPT.”
Chuck Butler, Everbank World Markets
‘Instead of flooding the entire economy with liquidity, and thereby increasing the danger of inflation, the Fed could support the stock market directly by buying market averages in the futures market, thereby stabilizing the market as a whole.’
Robert Heller, Federal Reserve Board
“There is no trap so deadly as the trap you set for yourself.’
Raymond Chandler, The Long Goodbye
Today is the 30th anniversary of Black Monday, the crash of 1987. I remember it very well.
As you may not recall, on Tuesday following the crash, with the futures market indicating a significantly lower open, Alan Greenspan and the Fed came in buying SP 500 futures in order to turn the markets around. And it worked. And it continued, with the Fed supporting the equity markets with jawboning, persuasion, and occasionally direct intervention, so that by the end of the year all was well with the markets.
This post was published at Jesses Crossroads Cafe on 19 OCTOBER 2017.
Follow on Twitter
Recent Comments