Government Intervention in Stock Market

Government Intervention in Stock Market is Detailed by New Report, GATA Says

MANCHESTER, Conn.--(BUSINESS WIRE)--Sept. 6, 2005--A major Canadian financial management firm that a year ago published a compilation of evidence of central bank manipulation of the gold price has just done the same in regard to the U.S. stock market and has reached a similar conclusion.

The new report is titled "Move Over, Adam Smith: The Visible Hand of Uncle Sam," and has been published by Sprott Asset Management of Toronto. It was written by the firm's president, John P. Embry, and his assistant, Andrew Hepburn, and concludes that the U.S. government has intervened to support the stock market so many times that "what apparently started as a stopgap measure may have morphed into a serious moral hazard situation, with market manipulation an endemic feature of the U.S. stock market."

The new report relies largely on reports of news organizations and the essays and research papers of economics academics that, as might be expected, have not been well-publicized in the United States. But some of these reports have been circulated by the Gold Anti-Trust Action Committee over the years.

"There can be no doubt that the firms responsible for implementing government interventions enjoy an enviable position unavailable to other investors. Whether they have been indemnified against potential losses or simply made privy to non-public government policy, the major Wall Street firms evidently responsible for preventing plunges no longer must compete on anywhere near a level playing field. It is most unfair that the immensely powerful have been further ensconced in their perched positions and thus effectively insulated from the competitive market forces ostensibly present in our society.

"In addition to creating a privileged class, the manipulation also has little democratic legitimacy in the sense that the citizenry has not given its consent. This has tangible ramifications. By not informing the public, successive U.S. administrations have employed a dangerous policy response that is subject to the worst possible abuse. In this regard, the line between national necessity and political expediency has no doubt been perilously blurred.

This is infuriating! Not only will this undermine confidence in the market, if true, it opens the door a little wider for potentially sinister purposes behind the backs of the public. Does anyone get the sense that government accountability in America is a myth???


[edit on 7-9-2005 by loam]

must be the secret government technology that will truely sway global market compadibility, they are fixing for a forex revolution!

I eluded to something similar in this post a few days ago, in the wake of the hurricane, ...

www.abovetopsecret.com...

I guess it has immediatly proven itself very good for the bottom line of the markets regardless of the 100's of billions it will cost the taxpayers and the economy, either that or market manipulation is a feature fact for protection of investor mental stability.




(and for me at least, my thread has confusingly been moved to the general PTS Economics catagory where I still view it as a very conspiratorial issue

, but no worries

.)