Reinko

Is the $700 Billion Really for Bailing Out the Fed?

This is a highly interesting article, I am only for about one week aware of a possible 'Plunge protection team' that was raised by a local television network named RTL7.

I have a degree in math and statistics and for over 4 years I am studying the US financial complex.

And so often I have observed weird market behavior while the SEC did her own thing that all in all I can say:

PPT for real?

Statistical proof = 100%
Courthouse proof = 0%

__________

In the article it is mentioned that the 700 billion size could be explained by the fact that the US FED is almost at the end of her US Treasuries (builded up since 1913 or so).

After my humble opnion it has more to do with accountancy rule 157 now we are just before the end of the fiscal year.

That also explains why there is so much hurry to shove this through Congress & the likes.

I am not an accountant but rather likely there are vast quantities of assets that are only marked once a year to market value.

So for the time being I only look in amazement at the 700 billion US$ thing; why the size and why the speed?
And PPT theories are rather likely true, but all they do is plunge protection and have not infiltrated the money and Treasuries auctions...

But you never know; sometimes I am wrong too...