Greenspan Fingerprint Found on London Bombs
[ http://wagnews.blogspot.com/2005/07/greenspan-fingerprint-found-on-london.html ]
Alan Greenspan may have some explaining to do.
Because the fingerprints of Greenspan's Federal Reserve are all over financial transactions just ahead of the London bombings.
The Fed has previously supported financial markets by increasing liquidity to boost the stock market -as happened after 9/11.
But an analysis of stock
transactions by financial M.B.A. "cunningrealist," shows that even
though the attacks in London took place on Thursday, 7th July, the Fed
had already hugely increased liquidity 48 hours before that --just in
time for that liquidity to filter into the market.
Here is his chart of
"securities lending" -one way the Fed creates liquidity. It shows a
huge spike on June 30th. This is extraordinary activity.
Then the Fed almost
doubled "temporary liquidity" to $40 billion, driving this mechanism to
a multi-year high on Tuesday, July 5th -and it kept liquidity elevated
on Wednesday and the day of the bombings:
Over recent months, the
Fed has pumped extraordinary liquidity into the markets. The Fed
doesn't take this sort of action for no reason, particularly when the
price of oil is already at an all-time high. But whatever their reason,
it worked.
There was little global
financial downside as a result of the London attacks. The stock market
saw heavy buying right at the opening bell on Thursday and has shot
straight up since then.
Commenting on this, financial journalist, Eric Sidall wrote:
"The capital markets are
working so efficiently that when Greenspan called his British and
European counterparts regarding whether the three central banks should
intervene, the decision was to let the markets function since no
liquidity problem existed." [Tip: DU]
Duh. No liquidity problem
existed -because the Fed had pumped the market by $35 billion in extra
money during the days before the bombs. Now that's what I call
efficient markets!
Or, was it just a coincidence that financial markets were pumped up in advance of a major geopolitical event?
Source article: Following the Money
See Also??: Who shorted British pound?
Adapted from the CunningRealist
posted by Fintan, BreakForNews.com
at 3:02 AM
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