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Does the Federal Reserve manipulate the stock market?

Does the Federal Reserve manipulate the stock market?

http://www.youtube.com/watch?v=mXmNpdYpfnk

 



Study Says World’s Stocks Controlled by Select Few

Study Says World’s Stocks Controlled by Select Few

Inside Science News
August 29, 2009

A recent analysis of the 2007 financial markets of 48 countries has revealed that the world’s finances are in the hands of just a few mutual funds, banks, and corporations. This is the first clear picture of the global concentration of financial power, and point out the worldwide financial system’s vulnerability as it stood on the brink of the current economic crisis.

A pair of physicists at the Swiss Federal Institute of Technology in Zurich did a physics-based analysis of the world economy as it looked in early 2007. Stefano Battiston and James Glattfelder extracted the information from the tangled yarn that links 24,877 stocks and 106,141 shareholding entities in 48 countries, revealing what they called the “backbone” of each country’s financial market. These backbones represented the owners of 80 percent of a country’s market capital, yet consisted of remarkably few shareholders.

“You start off with these huge national networks that are really big, quite dense,” Glattfelder said. “From that you’re able to … unveil the important structure in this original big network. You then realize most of the network isn’t at all important.”

The most pared-down backbones exist in Anglo-Saxon countries, including the U.S., Australia, and the U.K. Paradoxically; these same countries are considered by economists to have the most widely-held stocks in the world, with ownership of companies tending to be spread out among many investors. But while each American company may link to many owners, Glattfelder and Battiston’s analysis found that the owners varied little from stock to stock, meaning that comparatively few hands are holding the reins of the entire market.

“If you would look at this locally, it’s always distributed,” Glattfelder said. “If you then look at who is at the end of these links, you find that it’s the same guys, [which] is not something you’d expect from the local view.”

Matthew Jackson, an economist from Stanford University in Calif. who studies social and economic networks, said that Glattfelder and Battiston’s approach could be used to answer more pointed questions about corporate control and how companies interact.

“It’s clear, looking at financial contagion and recent crises, that understanding interrelations between companies and holdings is very important in the future,” he said. “Certainly people have some understanding of how large some of these financial institutions in the world are, there’s some feeling of how intertwined they are, but there’s a big difference between having an impression and actually having … more explicit numbers to put behind it.”

Based on their analysis, Glattfelder and Battiston identified the ten investment entities who are “big fish” in the most countries. The biggest fish was the Capital Group Companies, with major stakes in 36 of the 48 countries studied. In identifying these major players, the physicists accounted for secondary ownership — owning stock in companies who then owned stock in another company — in an attempt to quantify the potential control a given agent might have in a market.

The results raise questions of where and when a company could choose to exert this influence, but Glattfelder and Battiston are reluctant to speculate.

“In this kind of science, complex systems, you’re not aiming at making predictions [like] … where the tennis ball will be at given place in given time,” Battiston said. “What you’re trying to estimate is … the potential influence that [an investor] has.”

Glattfelder added that the internationalism of these powerful companies makes it difficult to gauge their economic influence. “[With] new company structures which are so big and spanning the globe, it’s hard to see what they’re up to and what they’re doing,” he said. Large, sparse networks dominated by a few major companies could also be more vulnerable, he said. “In network speak, if those nodes fail, that has a big effect on the network.”

Trader: Market is manipulated and volumes ‘fictitious’

Gold prices are manipulated

 



Trader: Market is manipulated and volumes ‘fictitious’

Trader: Market is manipulated and volumes ‘fictitious’

http://www.youtube.com/watch?v=V4cRYI2x60Q

Gold prices are manipulated


Physical Gold Remains Over +1,000 an Ounce

Physical Gold Remains Over +1,000 an Ounce
Gold buffalo 1oz coins are trading between 300 to 400 over spot price on ebay.

Market Oracle
October 24, 2008

It appears that there is a common refrain going around the investment community. It goes something like this:

“Gold should be doing better, and, since it isn’t, I am not going to buy it”

Investors who believe this are making the mistake of thinking COMEX gold is the same as real physical gold. It is not.

COMEX gold is a form of debt. It involves one party promising to produce gold (money) to another at a future date. Like all forms of debt, a COMEX futures contract is only as good as the counterparty behind the contract. Right now, because of low margin requirements, sellers of gold futures only have enough gold to cover 10% of outstanding contracts stored in COMEX warehouses. Considering that the biggest sellers of gold futures contract are insolvent financial institutions, it is obvious that COMEX gold has enormous counterparty risks . If even a quarter of outstanding contracts asked for physical delivery, it would be enough to guarantee a default. Since a financial collapse would actually creates the risk total default (insolvent banks can’t produce the gold or cash), COMEX gold fails miserably as a safe haven . This is why COMEX gold prices are falling, while physical gold is disappearing from the market place

Because of scarcity, physical gold is selling at an enormous premium to gold spot price (which is set by COMEX). How big a premium? Well, on eBay 2008 gold buffalo are trading between 300 to 400 over spot price. That is a 50% premium. The enormous premiums being paid in the physical market means that a large number of December gold contract holders are likely to request delivery. A volume, whether it causes defaults or not, is likely to change the marketplace perception of gold and cause a rush of into a physical gold plagued by shortages. Gold will skyrocket over 2000 in a matter of days.

I am not the only person who believes COMEX gold futures are on the verge of collapse. I urge you to watch this video (skip to 11 minute mark) and read the extract below to see what others are saying about paper gold:

Why Gold Is Down When It Should Be Up
http://noworldsystem.com/2008/10/26..-is-down-when-it-should-be-up/

Demand For Gold Soars
http://www.telegraph.co.uk/financ..-gold-soars-has-price-tumbles.html

Fitch says gold price will hold up reasonably well over 12-18 months
http://www.mineweb.net/mineweb/vie..=Detail

 



Oil is $63 a Barrel, Lindsey Williams Predicted $50

Lindsey Williams Predicted Oil Will Be $50 a Barrel
Insider of the Global Elite was told: “Price of crude oil is going down to $50 a barrel. . . gas will be $2 to $2.50 a gallon” (1st video @ 7:11). “The entire Arab world will be bankrupt” (2nd video @ 7:34) “. . . you are going to shout and dance on the street at $2 a gallon and mark my words within 3-4 weeks time you are going to shutter in your boots because the dollar is going to go to zero, they’ll have an excuse to bring in the North American Union, they will be able to issue a new currency . . .” (3rd video)

 

Lindsey Williams on Alex Jones Show, October 26, 2008

 

Oil falls to $63, OPEC plans on cutting supply of oil

AP
October 26, 2008

Oil prices fell to 17-month lows at $63 a barrel Monday in Asia as investors weighed Friday’s OPEC output cut against growing evidence of a severe global economic slowdown that would undermine crude demand.

Light, sweet crude for December delivery fell 32 cents to $63.83 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore.

Investors brushed off a 1.5 million barrel-a-day cut announced by the Organization of Petroleum Exporting Countries on Friday, focusing instead on falling crude demand as economies across the globe reel from the impact of a credit crisis.

On Friday, oil fell $3.69 to settle at $64.15. Prices have plunged 57 percent from a record $147.27 on July 11.

“The mood is fairly negative reflecting worry about the international economic outlook,” said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney. “If there is further weak economic data in the U.S. or Europe, prices could come under more downward pressure.”

Iran’s OPEC governor Mohammad Ali Khatibi said Sunday a reduction in production “will be considered” at the group’s next meeting in Algiers in December — a meeting that might even be held early if necessary.

“I thought the OPEC cut was a fairly decisive act, but concerns of recession in the major economies remain dominant,” Moore said. “OPEC’s cut does take a step toward tightening the market.”

Read Full Article Here

Largest Drop Ever In Gas Prices
http://www.reuter..dName=domesticNews&rpc=22&sp=true

Oil Can Fall to $50-$60 if Credit Stays Tight
http://www.cnbc.com/id/27160853

Oil down 50pc from July high
http://www.telegraph.co.uk/finance/finance..-July-high.html

 



Why Gold Is Down When It Should Be Up

Why Gold Is Down When It Should Be Up

Alex_Wallenwein
The Market Oracle
October 13, 2008

Why is gold dropping right now when anyone in their sane mind would expect it to rise? The simple answer to this question is, “because Comex-gold isn’t gold” – and because it deceptively pretends to be ‘the’ price-setter for real gold.

Gold is gold, paper is paper, and “Comex gold” is nothing but paper masquerading as gold while simultaneously pretending to be the price-setting medium for actual gold in the world. Now, finally, Comex-gold is in the process of being unmasked.

The real supply and demand determinants for Comex gold are not actual gold investors but fund managers . Fund managers are inextricably intertwined with the world of contract-based credit instruments. They use bet on Comex gold contracts to hedge their other (currently horrendously losing) bets with something they all, in their in-bred belief in paper markets, believe will ‘go up’ in value while everything else is going down.

However, these very same fund managers and their paper-bound investment psychology are the exclusive reason why Comex gold is dropping in these times when everyone (including fund managers) expects gold to rise. As already stated, though, and as they now finally realize to their own dismay, Comex-gold just isn’t gold – and that causes even further selling.
Two Losing Bets, Compounded

Fund managers’ other bets are losing money fast, now, so they need to raise cash to keep up the overall value of their respective funds, so they can earn their management bonuses and avoid getting booted for lack of relative performance. Guess what they cash in on? The very same Comex paper-gold they mistakenly bought as a ‘hedge’, of course.

Meanwhile, real investors in real gold are enjoying their shopping spree – except that the spree turned into a treasure hunt as the shelves and display cases of gold dealers look more and more like the supermarket shelves in the old Soviet Union – bare.

This is the only ‘bare-market’ in real gold the world will see for a long, long time to come.

With this split, this disconnect, between Comex illusion and gold reality, one thing or the other will have to give, and it won’t be physical gold that gives.

The system built up around the reputation of Comex-gold as being a price-setting mechanism for real gold plays right into the hands of the financial establishment. The establishment depends for its (now increasingly meager) existence on the illusion that gold “isn’t living up to its promise” as a real inflation and disaster hedge. The implication, of course, is that investors might as well stay in the computer blip and paper world.

As the Comex gold price illusion drops, many retail investors are still persuaded to keep their money circulating in the paper world, and that ultimately feeds the system. Of course, by now that ‘feeding’ mechanism looks more like life-support, but try and unhook someone who is on life-support. The results are dramatic, inevitable, immediate – and final.

Yet, even on life-support, the system is deteriorating at a catastrophic pace. It would be hilarious to watch if it wasn’t for the fact that we are all depending on this phony system for our real-life support. Without credit freely circulating through the commercial paper universe, for example, grocery stores won’t have food on their shelves, there won’t be gas a the gas station, and your bank will be shut. Cash doesn’t transfer very well without the bank settlement process.

That’s the problem.

Read Full Article Here

 

COMEX Gold Drops $681 on October 24, 2008

 



Gold Runs Out In Germany

Gold Runs Out In Germany

Allan Hall
London Evening Standard
October 12, 2008

Risk-averse Germans are turning to gold in troubled times – but there’s none left.

German gold dealers say demand has skyrocketed this past week to 10 times normal so no more orders can be taken for the foreseeable future.

“The demand exceeds our capacities by a great deal,” said Heiko Ganss, head of precious metal company Pro Aurum.

“The requests cannot be satisfied right now,” a dealer from the Düsseldorf WGZ Bank confirmed.

“Demand for gold as a conservative investment has risen dramatically,” said stephan Henkel. “right now the demand is about 10 times as high as in normal times.”

Gold deliveries now take between four and six weeks.

The US mint said on Monday it had exhausted some of its supply of bullion coins and was struggling to meet demand for gold, silver and platinum.

South Africa’s Rand Refinery, producer of the world’s most popular gold bullion coin, the Krugerrand, temporarily ran out of the coins in August.

 

Londoners Queue-Up on Sidewalk to Buy Gold in Rush for Money Haven

Bloomberg
October 9, 2008

Londoners stood in line outside the largest gold coin and bar retailer in the city’s West End shopping district, clogging the lobby and trading among themselves as they sought a safe haven for their money.

“People want something tangible, something they can hold on to, something the banks can’t give them,” said Chris Burrow, the owner of ATS Bullion, the gold dealer in the Strand that traces its roots back to the 17th century. “There’s no time to breathe. We’re rushed off our feet. Staff are exhausted.”

As U.K. stocks tumbled to a five-year low, paced by financial-services companies, gold advanced. Since Lehman Brothers Holdings Inc.’s Sept. 15 filing for bankruptcy protection, exacerbating the worldwide credit crisis, gold for immediate delivery has jumped 19 percent.

“Investors are rushing to safe havens and physical gold seems to be the favorite one,” said Frederic Panizzutti, a senior vice president at MKS Finance, one of Switzerland’s four bullion refiners.

British government action to prop up the banking industry has failed to reassure investors. The U.K. on Oct. 8 promised 50 billion pounds ($86 billion) of capital to banks, the same day the Bank of England cut its benchmark interest rate by half a percentage point. Last month, the government brokered a takeover of HBOS Plc, Britain’s largest mortgage lender, and seized control of Bradford & Bingley’s mortgage division.

Read Full Article Here

 

Austria Witnesses New Gold Rush

BBC
October 12, 2008

The financial crisis is prompting people to look for safer forms of investment than stocks and shares.

The interest in gold coins is so great that many of the world’s major mints are struggling to keep up with demand, including the Austrian Mint, which produces the Vienna Philharmonic – one of the best-selling bullion coins worldwide.

Sales of Vienna Philharmonic gold coins have gone up by more than 230% since last year.

Kerry Tattersall, the director of marketing at the mint, says production has gone into overdrive.

“We are running at present something like three shifts on all of the machines, on the presses, producing both gold and the silver bullion coins.

Read Full Article Here

 

Central banks all but stop lending gold

Javier Blas
Financial Times
October 8, 2008

Central banks have all but stopped lending gold to commercial and investment banks and other participants in the precious metals market, in a move that on Tuesday sent the cost of borrowing bullion for one-month to more than twenty times its usual level.

The one-month gold lease rate rocketed to 2.649 per cent, its highest level since May 2001 and significantly above its five-year average of 0.12 per cent, according to data from the London Bullion Market Association.

Gold lease rates for two, three, and six months and for a year also jumped to levels not seen in the last seven years.

Traders said the jump reflects the fact that central banks — mostly European — have almost completely stopped lending gold in the last few days and are not rolling forward old leases after maturity. This is because of fears that some borrowers might not repay their bullion loans if they are engulfed by the financial crisis.

“A number of central banks have been cutting back on their gold lending,” said Tom Kendall, a precious metals strategist at Mitsubishi in London.

John Reade, a commodities strategist at UBS, added that there had been a lot of talk about some central banks being unwilling to lend their gold because of a redoubled focus on the risk of borrowers not returning it.

Read Full Article Here

Bullion Shortage and Spot Prices Tell Two Different Gold Stories
http://seekingalpha.com/article/99680-..ces-tell-two-different-gold-stories

Blatant Banker Manipulation Of Gold Prices
http://www.prisonplanet.com/blatant-banker-manipulation-of-gold-prices.html

No Mass Mania for Gold Yet – Less than 1% of Public in Western World Have Invested in Gold
http://news.goldseek.com/GoldSeek/1224161100.php

Spot Gold Price Is Now Meaningless
http://www.istockanalyst.com/article/viewarticle%2Barticleid_2713209.html

Gold expected to rally above $1000 in Q1 2009
http://network.nationalpost.com/np/b..o-rally-above-1000-in-q1-2009.aspx

What the Pros Say: All that Glitters is Gold
http://www.cnbc.com/id/27095525

Kiener: Gold Prices To Double On Paper Market Default
http://www.prisonplanet.com/kiener-..o-double-on-paper-market-default.html