• BullionStar
    05/30/2016 - 21:24
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"Have The Federal Reserve Or Prime Brokers Ever Tried To Manipulate The Stock Market?"

Tyler Durden's picture

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Fri, 09/25/2009 - 12:25 | 79642 ghostfaceinvestah
ghostfaceinvestah's picture

I have these proceedings playing in the background at work.  EVERY American should be listening to this.  The committee seems to be learning.  The issue of this problem going back to the bailout of LTCM has even come out (of course it is before that, but at least they are not blaming it on the failure of Lehman).  They are talking about Hayek, Mises, etc.

Fri, 09/25/2009 - 12:30 | 79650 Gilgamesh
Gilgamesh's picture

Huh, is there some kind of hearings going on today?  All I can see in the news is Iran and G20.  I'm sure if there were important hearings going on, it would be all over the corporate media...  Surely just a coincidence, the timing of news today - and the market selling off.

Fri, 09/25/2009 - 12:35 | 79654 koaj
koaj's picture

i wonder if cnbc is live streaming this thing also or are they running a special Kneale/Kudlow Power Lunch?

Fri, 09/25/2009 - 12:38 | 79657 ghostfaceinvestah
ghostfaceinvestah's picture

You wouldn't know there was a hearing based on the 12 people in the room, but there is some good stuff being said.

I think the direct correlation is between the selloff and the slowdown in MBS money printing.


$25B last week, again.  With 6 months to go now, instead of 3 months, buying should slow down to $12B a week.  Is that enough in and of itself to starve the equity markets of much-needed liquidity?  Sad comment on the state of the market if that is the case.  And scary to think what will happen with UST buying stops, and then MBS buying stops in March.

S&P 500 @ 500 ahead?

Sat, 09/26/2009 - 11:05 | 80385 Anonymous
Anonymous's picture

"You wouldn't know there was a hearing based on the 12 people in the room."

And that speaks volumes about Congress' desire to understand the problem and change things, doesn't it? Most of them are worthless when it comes to representing anything other than those who pad their pockets for the next campaign or who will offer them a job after they leave office.

Sat, 09/26/2009 - 12:58 | 80423 Anonymous
Anonymous's picture

So sad ...
The entire markets directory, www.newyorkfed.org/markets, has totally vanished a day later, Saturday. One hopes future auditors will not be vexed or misled by large numbers of 'vanished' ledger entries.

Fri, 09/25/2009 - 12:48 | 79680 AndItsGone
AndItsGone's picture

 Austrian economics going toe-to-toe with the kleptocracy in an open session of Congress. The proton torpedoes are coursing through the veins of the Death Star.

Fri, 09/25/2009 - 15:14 | 79863 h4rdware
h4rdware's picture

There was another good clip later on - the testimony of Tom Woods of the Mises institute. It didn't make its way onto youtube unfortunately but it was definitely worth watching if anyone can unearth it. The testimony itself can be found on mises.org but the section extended beyond it.

Fri, 09/25/2009 - 23:45 | 80258 Fish Gone Bad
Fish Gone Bad's picture

If anyone wants to send Grayson their ideas or questions, here is his page where you can send input: http://action.firedoglake.com/page/s/1207hearing


As usual, let as many people know as possible.  If you have teenagers, have them post a myspace bulletin and ask others to repost it.  After some time goes by, have them delete the posting, and then re-post it.  Doing this trick about 10 times over a day can really get a message out.

Fri, 09/25/2009 - 12:26 | 79643 skeptic_ill
skeptic_ill's picture

Alan Grayson: Mr. Alvarez, would you like to take a moment to change your undergarments?

Scott Alvarez: No thank you Mr. Grayson, I'm wearing Oops I Pooped My Pants

Fri, 09/25/2009 - 14:45 | 79831 Argos
Argos's picture

Not a very strong performance for the head lawyer.  He reminds me of Barney Fife.

Fri, 09/25/2009 - 15:15 | 79864 MsCreant
MsCreant's picture

Remember, the Head Lawyer is the one with the knee pads.

Fri, 09/25/2009 - 16:01 | 79908 Anonymous
Anonymous's picture

No. That's my ex-wife.

Fri, 09/25/2009 - 12:29 | 79646 Altan311
Altan311's picture

Absolutely mind blowing stuff, Grayson seriously dropping some hammer blows, and will someone please get Alvarez a body language coach? I keep thinking of that scene from ants when the foot comes down...

Fri, 09/25/2009 - 13:05 | 79709 Anonymous
Anonymous's picture

Seems like the sheepeople are finding sufficient entertainment in another episode of The Dog and Pony Show.

Fri, 09/25/2009 - 15:17 | 79865 MsCreant
MsCreant's picture

Possibly a fair observation. What are we not attending to then? Direct us simpletons.

Fri, 09/25/2009 - 13:48 | 79759 Cow
Cow's picture

He's got the same body language coach as Timmay Geithner

Sat, 09/26/2009 - 13:52 | 80450 Anonymous
Anonymous's picture

I have visions of Tim Roth on Lie to Me just chewing him apart......how many "tells" did that asshole have.....?!!!

Fri, 09/25/2009 - 12:29 | 79649 Art Vandelay
Art Vandelay's picture

Every time I watch these hearings, I keep hoping that a few of these other putzes would simply shut their traps and cede their time to Grayson.  Imagine what he could do with 20 or 30 minutes, instead of just 5.

Fri, 09/25/2009 - 12:35 | 79652 Anonymous
Anonymous's picture

I totally agree. He is one of the very few relevant interviewers in congress.

Fri, 09/25/2009 - 13:08 | 79714 gmrpeabody
gmrpeabody's picture


Fri, 09/25/2009 - 13:49 | 79762 Cow
Cow's picture

Agreed.  What is more important than that line of questioning?  Let him finish.

Fri, 09/25/2009 - 23:39 | 80255 Missing_Link
Missing_Link's picture

Yep.  Why can't the Republicans ask these kinds of questions?  Makes me ashamed of my party.

Fri, 09/25/2009 - 12:31 | 79651 andrew123
andrew123's picture

Frankly, I thought Grayson sounded like a simpleton.  Instead of asking broad questions like "has the Fed ever manipulated the stock market" and then saying "I think you know what I mean", he should have asked very specific questions:  Has the fed ever directly or indirectly bought us equities or us equity index futures?  Has the fed ever loaned money against equities or equity futures?  Has the fed ever made guarantees to any other party regarding its purchaaes of equities or equity futures, etc."  Any pronoucnement of interst rate or manitary policies could have an indirect effect on equities, so I think Grayson's question was far too broad.  I appreciate the work he is doing, but I though he came across too simplistic.  On another matter, who was the unprepared idiot that asked Alverez all the basic points about the Fed (white guy, black hair)?  He was sitting behind a a plack that said Wilson, but the only Wilson that is on the committe, doesn't look like the guy on the web, and his office said he was not in attendence.

Fri, 09/25/2009 - 12:39 | 79662 earnyermoney
earnyermoney's picture

I believe the camera angle is providing an optical illusion. It is really apparent for members sitting on the outter edges of the dias. Most likely, Wilson sits adjacent to the person of interest.

Fri, 09/25/2009 - 12:41 | 79667 ghostfaceinvestah
ghostfaceinvestah's picture

I had the same initial reaction, but you have to remember that part of this is theatre.  Grayson knows this clip will be posted on YouTube and replayed. It has to be kept simple for the people to understand.

I don't trust Grayson as much as say Ron Paul, but whatever it takes, breaking down the Fed is going to take a lot of doing.  The last guy who did it (Andrew Jackson) had to fire several of his cabinet to get it done.

Fri, 09/25/2009 - 13:11 | 79722 Altan311
Altan311's picture

Don't forget the assasination attempts by supposed Rothschild agents. Jackson was a horrible racist man who drank too much and abused minority groups for sure, but when they aked him on his deathbed what he was most proud of he said simply "I killed the bank"

fuck yeah

Fri, 09/25/2009 - 14:48 | 79836 Anonymous
Anonymous's picture

..and then what?

The Biddles and their henchmen simply tanked the economy in the 1837 Panic turning van Buren admenstruation into a debacle.

Not saying Jackson shouldn't have done what he did but their was a very heavy price to pay. For decades.

Fri, 09/25/2009 - 19:17 | 80107 Anonymous
Anonymous's picture

...which is why we must make sure that it does not happen the same way again this time...

we loved sir grayson's schtick today but we agree that in the future, the questions should be more specific & pointed. broad strokes may reach a broader audience, but tighter inquiries make it that much more difficult to slip away.

for we bet a silver dollar that whoever the FED brings in next time will be much more slick than mr. alvarez, esq. was today.

Sat, 09/26/2009 - 03:33 | 80321 Anonymous
Anonymous's picture

U fell for it. AJ probably didn't drink TOO much and prob wasn't that much a racist.

Just like JFK who tried to dismantle the FED. The propagand
machine made him out to be a drinking, womanizer.

He could barely walk due to chronic back pain,

RIP JFK... Liberty fell with him. Now look at the mess.

Fri, 09/25/2009 - 13:22 | 79734 pigpen
pigpen's picture

Dylan and Ron Paul skewer the FED on MSNBC yesterday.

"We should never be fearful of the truth"


Fri, 09/25/2009 - 12:41 | 79668 I need more cowbell
I need more cowbell's picture

Perhaps a simpleton to you, but in the land of village idiots and corrupt bought-offs, Congress, he sounds like Atilla the hun to me.

Fri, 09/25/2009 - 13:27 | 79736 Village Idiot
Village Idiot's picture

I concur.

Fri, 09/25/2009 - 12:46 | 79676 Anonymous
Anonymous's picture

your point is well taken....he leaves open
the barn door so that the flies and cows can

grayson is merely grandstanding....he gives
the impression of asking tough questions when
all he is doing is winking....

grayson: mr hitler, has the nazi party ever
burned jews to get their gold teeth?

hitler: we have never burned a jew for their
gold fillings..

Fri, 09/25/2009 - 12:59 | 79695 RagnarDanneskjold
RagnarDanneskjold's picture

Glad to see others saw that. A competent lawyer will never step into an open ended question. I didn't even know what Grayson meant, at first it sounded like he meant direct intervention and then he seemed to back off. When the lawyer started talking about interest rates, Grayson didn't differentiate. Well played by the lawyer. It made Grayson appear ignorant, which is the Fed's goal.

If it's political red meat for the simpletons, Grayson should realize that there are non-simpletons out there. 

Fri, 09/25/2009 - 19:25 | 80109 Anonymous
Anonymous's picture

personally we think alan was just a little too overexited and a bit too underprepared, but we're not holding our breath either. however, there is a way to discover for sure...

perhaps ZH should do a poll:
Top 10 Questions to ask the FED

send the results to sir grayson, see if he bites. at the least, we'll know which way he really leans as soon as he opens his mouth next time.

Fri, 09/25/2009 - 19:54 | 80133 Anonymous
Anonymous's picture

on balance, I think he hurt his own cause, acting all cutesy and basically coming across as the ignorant party

Fri, 09/25/2009 - 12:35 | 79653 ghostfaceinvestah
ghostfaceinvestah's picture


$25BBBBB again this week.

Next week (starting yesterday) is when purchases are supposed to slow.  Do you think we will actually see a slowdown?

Note the disbursement between purchases of Fannie/Freddie paper versus Ginnies.  Ginnies have nearly the market share of Fannie/Freddie, but have full faith and credit backing.

What will happen to the market for Fannie/Freddie's if the Fed stops buying.

How much is this bailout of Fannie/Freddie really costing us, and why has there been no move to reform them?

Why are they not just rolled into the FHA?

Fri, 09/25/2009 - 12:42 | 79671 mbielik24
mbielik24's picture

If I'm notmistaken, they would have to raise the debt ceiling (a few trillion) to take FNMA, FHLMC on their books.

Sat, 09/26/2009 - 00:30 | 80271 Anonymous
Anonymous's picture

the fed is not subject to debt ceilings.

Fri, 09/25/2009 - 13:02 | 79705 SDRII
SDRII's picture

ghost trying to piece together the implicationt hat mbs buying frees up cash for PDs to buy the longer dated treasury auctions rince wash repeat. that said any thoughts on the repo implciations of flooding the market with collateral to the MM? Liked the comment the PDs don;t have the balance sheet for such a move?

Fri, 09/25/2009 - 12:35 | 79655 Anonymous
Anonymous's picture

I've got to send a thank you note to Mr Grayson.

Fri, 09/25/2009 - 12:38 | 79659 JohnKing
JohnKing's picture

Maximize employment, stabilize prices..make our buddies rich. Psycho-bankers!

Fri, 09/25/2009 - 12:38 | 79660 Bolweevil
Bolweevil's picture

"Save the unfortunate rhetorical flourishes for us (congress), that's what we get paid for."

Barney Frank

Fri, 09/25/2009 - 13:08 | 79717 Rusty_Shackleford
Rusty_Shackleford's picture

I know.


What a f-ing douchebag.


Fri, 09/25/2009 - 13:41 | 79752 Anonymous
Anonymous's picture

We have a second, and the motion brought to the table is : Barney is a douchebag...

Fri, 09/25/2009 - 15:26 | 79879 MsCreant
MsCreant's picture

Massengill disposable douche. Re-elections you know.

Fri, 09/25/2009 - 20:52 | 80170 Hephasteus
Hephasteus's picture

I'm going to go with dual purpose douche bag colostemy bag.

Fri, 09/25/2009 - 12:39 | 79661 chindit13
chindit13's picture

While that was a good exchange, I wish Grayson had been more pointed and just asked, "Has the Fed engaged directly or through a proxy in any buying of equities or futures in the last year?"

Another interesting moment was when Watt demonstrated why democracy, as wonderful as it is, is fraught with danger in that it might lead to the inmates running the asylum.

Of course in the end we all know that everyone in the Fed is honorable and beyond reproach, and that we should just mind our own goddamn friggin business and let these honorable people handle trillions of dollars with a small select group of firms without any transaction open to the full light of day.  Taxation without illumination.


Fri, 09/25/2009 - 12:39 | 79663 Anonymous
Anonymous's picture

In the late 19th century,and before the demise of the Ottoman empire,corruption was rampant between the governing elite. Does that mean people were sleeping?of course not. There were many reform movements that were constantly pointing out to that and trying to correct it. Except that all their trials were in vain.So after it was at the edges of Vienna,the Austrian capital in the 1600's,there are currently three countries between Turkey an Austria. I watch with facination all those testimonies about trillions of dollars that nobody knows(or claim that they don't)where it went,and yet it seems that nobody is capable of doing anything about it.

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