I have to admit, at the rate of fall, the bottom was in sight before the end of the day.
What the hell was going on?
I thought about it last night. I wondered if the bankers were flexing their muscles? Specifically I was thinking of Goldman Sachs and their computerized trading, though I know they are not alone with their computerized trading programs.
Then, I heard some rumblings about shutting down the audit the fed bill in the US.
Coincidentally, but, I don't think so.... after the free fall frenzy yesterday here is the latest.
The Federal Reserve won a key battle Thursday when Sen. Bernie Sanders (I., Vt.) agreed to substantially alter his provision to audit the central bank’s operations. But pressure from the audit-the-Fed movement is far from over.
First, the latest action: Sen. Sanders, after intense lobbying by the Obama administration and Fed officials, removed language in his amendment to the financial-regulation overhaul that would’ve opened the Fed’s monetary policy deliberations to audits by the congressional Government Accountability Office. The original Sanders amendment eliminated restrictions — passed by the Senate in May 1978 — that block the GAO from reviewing the Fed’s monetary policy actions, discount window lending, open market operations and transactions with foreign central banks or governments.
Instead, the new Sanders amendment requires a one-time audit of the Fed’s emergency credit facilities and an audit of Fed governance, looking at the selection of regional bank directors and the operation of regional banks’ lending facilities. The measure still requires the Fed to identify publicly borrowers from its emergency lending facilities and other special programs by December 1. But it doesn’t stipulate ongoing disclosure; the Fed is only required to disclose details of loans made through enactment of the financial regulation overhaul.From Bloomberg
Senator Bernard Sanders dropped a proposal to audit the Federal Reserve’s monetary policy that the central bank had said posed a threat to its independence, broadening support for greater central bank disclosure. The Vermont independent narrowed the scope of an amendment to financial-overhaul legislation to “a one-time audit of all loans and other financial assistance,”
Hardee, har, har!! A threat to it's independence, from an audit?
Do you think that stock market drop yesterday helped the Senator and the Senate to 'see the light'?
Back to the ability of the Wall Street banks to manipulate the market through computer trading.
As easy as they can make it go up, they can make it fall down.
Do I think computer trading played a role in yesterday's slide?
Do you breath oxygen?
Interesting article on the Computerized Trading, dominated by Goldman-Sachs.
Read all the way to the end, an interesting 9/11 connection appears.
Computerized Front Running:
Another Goldman-Dominated Fraud