Charles Schwab Warns "We Are In A Manipulated Market"

Tyler Durden's picture


While the world of mainstream media stock pundits would like investors to believe that there is a wall of money on the sidelines waiting anxiously to go all-in on stocks (bear in mind there's a seller for every buyer and where does the cash on the sidelines go when it is handed over to the seller in return for his stock?), as none other than Charles Schwab notes in this brief Bloomberg TV clip, "investors are less rattled" than most believe, "and have stayed invested" in large part. "There hasn't been a wholesale movement away from stocks," he goes on, busting myths asunder, adding that "investors want to see market-driven conditions, not Fed manipulated ones."

So perhaps - just perhaps - Schwab is right, if the Fed stepped away and let markets be markets once again, maybe real capital would flow once again?

Schwab goes on to discuss how the Fed's policy has hurt the older generation - "it has been a terrible thing"

Beginning at around 50 seconds, Schwab calmly dismisses one of the biggest market myths and raises a few red flags - "we see the market go up or down depending on which Fed member is speaking..."


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Thu, 11/21/2013 - 11:33 | 4177276 prains
prains's picture

Schwab the Deck ! Bitchez!

Thu, 11/21/2013 - 11:38 | 4177308 krispkritter
krispkritter's picture

Schwab's the dick, Sons of Bitches...

When looking at that title the only thing that comes to mind is that old school-age saying 'No shit Sherlock'.

Thu, 11/21/2013 - 11:40 | 4177317 Indian_Goldsmith
Indian_Goldsmith's picture

Hey america, this is what the rest of the world thinks about you

Thu, 11/21/2013 - 11:48 | 4177351 Say What Again
Say What Again's picture

I would not be surprised to see ES, NQ, YM, & RUT all make new highs (or close to it) today.  You had your chance over the last few days, and that's all the dip you get.  The ratio of UP Volume to TOT Volume is over 70% on all of the groups, and the NASDAQ is over 80%.  Somebody is buying up this shit again.

Thanks to the Fed's POMO, this is a stable non-manipulated "market."  All that free money has to go somewhere, and there not placing it in safe assests that yield 0.05%

Thu, 11/21/2013 - 11:49 | 4177371 smlbizman
smlbizman's picture

how funny is it the asian chicks mouth does not sync with the words....bruce lee anyone?

Thu, 11/21/2013 - 12:08 | 4177454 asteroids
asteroids's picture

Low volume ramp. This market is being lifted by fumes.

Thu, 11/21/2013 - 12:23 | 4177514 Say What Again
Say What Again's picture

Its interesting to note that the AD lines are at their highest today since the beginning of October -- but the UP / DOWN volume is almost at zero.  But in a manipulated market, such as this, who knows what that means.

Thu, 11/21/2013 - 13:01 | 4177722 Rubbish
Rubbish's picture

No fixed income for you buddy, you put that cash down on the wheel and see what the house does to it.

Thu, 11/21/2013 - 13:09 | 4177706 El Oregonian
El Oregonian's picture

You mean volatile combustible fumes, She's 'bout ready to blow, cap'n!!!

Thu, 11/21/2013 - 11:57 | 4177410 Son of Captain Nemo
Son of Captain Nemo's picture

Guess we know what that means for the "String of Pearls"....

Bring out the Gimp!

Thu, 11/21/2013 - 11:46 | 4177350 DoChenRollingBearing
DoChenRollingBearing's picture

Recently I sold ETFs VO and VB (indices on small & midcap stocks) as well as a mutual fund holding large cap growth stocks.  I only have tiny holdings left of stocks.

That is a pity, as it shows I have little confidence in US companies & investments.

Gold, fishez.

Thu, 11/21/2013 - 11:38 | 4177311 Pladizow
Pladizow's picture

Yeah, I want a casino that is not rigged!

Thu, 11/21/2013 - 11:40 | 4177318 slaughterer
slaughterer's picture

Talk to Chuck, and get fucked.  

Thu, 11/21/2013 - 13:54 | 4178042 goldandsilverguy
goldandsilverguy's picture

Schwab is just the messager you moron.  Let's "talk to Chuck"!

Thu, 11/21/2013 - 14:47 | 4178281 sgt_doom
sgt_doom's picture

Good Citizen, prains, makes the most appropraite comment:

Schwab the Deck

Because, you see, it was the original Schwab, along with Carnegie (that was Andrew Carnegie), who sold the original submarines to Germany to allow them to sink the Lusitania and other ships, before and during World War I.

Didn't know that, huh?

Fortunately, John Moody (the dood who originally found Moody's) wrote a book, before those events, although published during them, called, The Masters of Capital, where he bragged about it, perhaps too dullwitted to understand the predictable consequences (Moody was laughing about how cleverly Schwab and Carnegie had sold them the subs by way of Canada, since there were laws against it at that time (sort of like those sanctions against Iran which never appear to affect GE or Halliburton,?).

Thu, 11/21/2013 - 11:33 | 4177277 ciscokid
ciscokid's picture

But, but I thought we had a free market.......

Thu, 11/21/2013 - 11:35 | 4177294 max2205
max2205's picture

Your just a bad trader if you let this bother you...

Thu, 11/21/2013 - 11:37 | 4177300 NoDebt
NoDebt's picture

""investors want to see market-driven conditions, not Fed manipulated ones."

No they don't.  Sounds nice in theory, but you wouldn't like the reality.

Thu, 11/21/2013 - 11:43 | 4177338 Hippocratic Oaf
Hippocratic Oaf's picture

Does anyone believe that we should be any higher than DOW 10,000?

From 6500 to 16,000 since '09



Thu, 11/21/2013 - 13:00 | 4177714 Getting Old Sucks
Getting Old Sucks's picture

They have to keep it that way and it has to go higher, forever.  It's the only mirage that's left of the U.S. economy.  Of course we all know it can't go on forever and they know it too, but they have no choice now.  Had they left the market alone in 2008-2009, things would be much better today for everyone except TPTB.  Can't have TPTB go under.  Better to commit national suicide (sarc).

Thu, 11/21/2013 - 13:25 | 4177879 forwardho
forwardho's picture

Stateing the truth as you see it is not sarcasm.

Thu, 11/21/2013 - 13:23 | 4177852 forwardho
forwardho's picture

Too true ND, If you were in casino playing ruelette, would you leave the table if the ball kept hitting "00" over and over?

Of course not, you'd bet the your whole wad over and over and make a fortune. (I have)

The game is rigged, It has to be or everyone is screwed. Until someone or some event breaks the table, investors will take advantage of the oppertunity.

The fundimentals show a dead or at least dying economy. Things of value are not being produced at even 1980 levels.

That is an ugly reality few will admit.


Thu, 11/21/2013 - 11:41 | 4177321 Max Damage
Max Damage's picture

Get him onto the paper goldmarket if he wants to talk about manipulation

Thu, 11/21/2013 - 11:47 | 4177330 Cdad
Cdad's picture

And the baffle with BS meme continues from the members of the criminal syndicate known as Wall Street.  Just a couple days ago, Liz Ann Sonders [of Schwab] got on the airwaves to declare that all of the stock bubble talk needed to end.

And in this case...on the day that DC green lighted Mr. Yellen.

Just how the US dollar is trading where it is quite mystifying.  Just another ramp by folks trying to "break the gold trade."  Trouble isn't a trade.  It doesn't fit on an hourly chart.  Well, I suppose it could, as long as you overlayed it on a hundreds year chart, as well.

Thank you, Ben Bernanke.  Your legacy is...a complete economic wasteland.  

Thu, 11/21/2013 - 11:44 | 4177344 QQQBall
QQQBall's picture

2/3rds are comfortable... 

Thu, 11/21/2013 - 11:46 | 4177349 Son of Captain Nemo
Son of Captain Nemo's picture


Even the "McNews" of do-it-yourself investing is folding his cards.

Thu, 11/21/2013 - 11:48 | 4177361 JustObserving
JustObserving's picture

How long have we known that we are in a manipulated market?  Markets for gold have been manipulated since 1971  The stock market has been manipulated since the crash of 1987 by the PPT which started in January of 1988.  For how many years did we have the Greenspan put and then the Bernanke put?  Since the crash of 2008, market manipulation has increased exponentially  You are a few years late to the party, Mr Charles Schwab.

Thu, 11/21/2013 - 11:55 | 4177400 I Write Code
I Write Code's picture

Yeahbut the moves in reaction to public statements are one thing, the moves in response to occult investments of billions and trillions of dollars, are entirely something else.

I think the modern era started in 1991 when Greenspan lowered interest rates so Saudi Arabia could help us pay for Gulf War I by buying a ton of bonds at 1% interest.  After that it was one excursion after another, with LTCM in 1998, then Gulf War II, until starting around 2008 individual stocks have been manipulated by some magical Bernanke spreadsheet.

I still have no real hint as to the mechanisms involved, is it just money, or do they dictate the major markets and the minor markets follow?  Who does it, to whom, and how often?

Thu, 11/21/2013 - 11:54 | 4177389 Al Huxley
Al Huxley's picture

The important thing is, manipulated or not, that nail-biting 20 point correction in the S&P of the last 3 days (seemed like FOREVER!) is FINALLY over and we can go back to making money in stocks.

Thu, 11/21/2013 - 13:02 | 4177728 Emergency Ward
Emergency Ward's picture

I wondered what that blip on the screen was.....

Thu, 11/21/2013 - 11:57 | 4177401 Mercury
Mercury's picture

"investors are less rattled" than most believe, "and have stayed invested" in large part. "There hasn't been a wholesale movement away from stocks,"

he goes on, busting myths asunder, adding that "investors want to see market-driven conditions, not Fed manipulated ones."


Sorry Mr. Sixpack, can't have it both ways, not at this point.

Thu, 11/21/2013 - 11:57 | 4177407 Running On Bing...
Running On Bingo Fuel's picture

Hey America, lol. Dude doesn't know there's only 105 active ZH members.


Thu, 11/21/2013 - 13:08 | 4177751 forwardho
forwardho's picture

Just curious, What is the criteria of an "active" ZH Member?

Thu, 11/21/2013 - 12:04 | 4177437 yogibear
yogibear's picture

No problem, the Fed has replaced the retail investor on pumping up stocks.

The Fed cannot stop QE.

Thu, 11/21/2013 - 12:07 | 4177448 pragmatic hobo
pragmatic hobo's picture

i always believed the real goal of qe is not to help the economy but to buttress share prices so the public will once again put their nest-eggs out of bond funds and into equity funds ...

Thu, 11/21/2013 - 13:30 | 4177461 Metal Minded
Metal Minded's picture
"We Are In A Manipulated Market"

In related news- As the week and a half long roller coaster ride(starting with a parabolic rise) of the BTC/USD and BTC/CNY currency pairs slows to take a breather, LTC(Litecoin) is starting to catch a bid at exchanges such as BTC-e, Vircurex, Bter, and Cryptsy(to name just a few of the available exchanges), in major pairs LTC/USD, LTC/CNY, and LTC/BTC. Max Keiser initiated coverage of LTC two days ago, calling for an interim of $50(currently ~$8.50). Arbitrage opportunities abound. 24/7 trading. When was the last time you traded on an exchange and didn't feel like you were up against Front Running, HFT, co-located brokerage computers, and POMO?

Thu, 11/21/2013 - 12:21 | 4177502 whatthecurtains
whatthecurtains's picture

Well shit the markets are always being manipulated.  Schwab is just upset because they are no longer doing it.

Thu, 11/21/2013 - 12:22 | 4177507 lunaticfringe
lunaticfringe's picture

We are in a manipulated market??

That some cutting edge stuff. Next thing you know, someone will tell us Obama is a liar.

Thu, 11/21/2013 - 12:24 | 4177519 monad
Thu, 11/21/2013 - 12:52 | 4177666 Tinky
Tinky's picture

I understand that schadenfreude is not a feeling that should generally be embraced, but when this fucker blows...


Thu, 11/21/2013 - 13:07 | 4177747 Colonel Klink
Colonel Klink's picture

I embrace it daily.  Or else all my sacrifice has been in vain.

Where the fuck has Chuck been the past 5 years?  His eyes are just opening now?  I'll avoid his company, thank you very much.

Thu, 11/21/2013 - 13:19 | 4177808 hamstercheese
hamstercheese's picture

Check out the dilution facts of Schwab's stock in 2001.

Thu, 11/21/2013 - 14:07 | 4178095 Buzz Fuzzel
Buzz Fuzzel's picture


Thu, 11/21/2013 - 14:28 | 4178195 El Hosel
El Hosel's picture

Gee Wally,

 How come only the people on the "News" programs are delusional about market and economic conditions?

Thu, 11/21/2013 - 15:11 | 4178440 Nobody For President
Nobody For President's picture

God damn Chuck - NOW you tell me.

Do NOT follow this link or you will be banned from the site!