Although I'm not sure this is what Adam Smith meant by the "invisible hand". From Zero Hedge: "A 'Mystery' Buyer is Propping Up the Markets." The article notes that after large sell offs of the S&P stocks in early August and early September, "someone" stepped in buying up stocks right and left and was able to quickly erase losses in the value of the S&P.
Again, this is blatant manipulation. No REAL buyer with deep pockets does this stuff. This was someone who was CLEARLY intent on propping up the stock market at all costs.
Who is doing this?
It has to be the Fed… or the Fed courtesy of a proxy.
No other investor has bottomless pockets and PANIC BUYS stocks like this. Again, this is not some investor who’s trying to make money… this is someone who wants stocks higher no matter what.
Again, this has to be the Fed. In fact, I believe that at some point in the next few months, the Fed will openly admit to buying stocks with a new QE program.
Obviously this is not the first time something like this has happened: the federal government and the Federal Reserve intervened in the 2007-2008 financial crisis and probably has been doing so on a regular basis since. But the timing of this suggests that there is a political motivation: to keep people from seeing their 401k's from crashing before the election.
Yup, the Fed.
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