Saturday, August 21, 2010

U.S. Government Propping Up The Stock Markets?

Hmmm...  Now here's a conspiracy theory!  (The old one about the remaining investment banks on Wall Street being used by their client (and benefactor) the U.S. Government to suppress the price of gold is at least six months old.)  But the strange behaviour of the equity markets lately - every time they're headed south they "recover" after four or five days - got me thinking that perhaps the Feds are also manipulating them.  Far-fetched, you say?  I think not.  Of course, the overt way to do it would be with the wording of various government board statements and reports, which are routinely scrutinized in detail by analysts and the financial media.  But there are also covert means, extremely sophisticated and virtually opaque to detection (certainly to your humble scribe, although I've read about them).  And with the extremely low volume (basically only professional traders are in the markets these days), it wouldn't be that hard for the Feds to surreptitiously step in.  Of course, it could also be aliens doing the manipulation.