Stock Market Rigging Is No Longer a ‘Conspiracy Theory’

FILES-US-FINANCE-ECONOMY-NYSEBy John Crudele. The stock market is rigged.

When I started making that claim years ago — and provided solid evidence — people scoffed. Some called it a conspiracy theory, tinfoil hats and that sort of stuff. Most people just ignored me . . .

With stock prices rushing far ahead of economic reality over the last six or so years, more experts in the financial markets are coming to the same conclusion — even if they don’t fully understand how it’s being rigged or the consequences.

Ed Yardeni, a longtime Wall Street guru who isn’t one of the clowns of the bunch, said flat out last week that the market was being propped up. “These markets are all rigged, and I don’t say that critically. I just say that factually,” he asserted on CNBC.

Yardeni’s claim is the most basic one: that the Federal Reserve won’t do anything that will upset Wall Street and, in fact, is doing all it can to help the stock market. (Read more from “Stock Market Rigging Is No Longer a ‘Conspiracy Theory'” HERE)

__________________________________________________________

Fed Market Gurus Prep Rate Hike amid Last-Minute Anxieties

By Jonathan Spicer. The New York Federal Reserve officials tasked with prying interest rates off the floor have been meeting with bankers and traders to plot how best to do it, amid deep uncertainty over how much control they will really have over short-term lending markets.

With the U.S. central bank expected to raise rates later this year, Simon Potter and his team of market technicians have the tricky job of implementing higher rates using some new and lightly tested tools as well as some that may not work as well as in the past. They’ll be operating under intense global scrutiny that’s centered on the prospects for the world’s biggest economy.

Even while testing new methods meant to sweep up trillions of dollars of reserves from financial markets, Potter’s team is preparing for volatility and to make on-the-fly adjustments when the time comes, according to interviews with Fed officials and market participants.

The trouble is that the federal funds market, the intra-bank trading pool traditionally used by the Fed to meet its policy goals, has shrunk to about a quarter of its pre-crisis size after more than six years of unprecedented monetary stimulus.

“There is a lot more uncertainty in the mechanical features of the outlook than people admit to,” said Joseph Abate, a money-market strategist at Barclays Capital. (Read more from this story HERE)

Follow Joe Miller on Twitter HERE and Facebook HERE.