SoT Market Update: Federal Reserve Intervention In Full Force

The Fed is in full market intervention mode right now.  It is desperate to keep the S&P 500 above 2,000 and gold below $1300.  Despite the intensified threats to hike interest rates at the June FOMC meeting, the stock market continues to spike up and gold is being pushed down.  It’s blatant manipulation.  Interestingly, research shows  – LINK – that Fed interest rate hike cycles are bullish for gold.

Futhermore, the non-seasonally adjusted, non-manipulated economic data continues to Untitledshow the economy has slipped into an “unofficial recession.”  Certainly a rate hike accelerate the problem reflected in this graph (click to enlarge) to the right, which shows the year over year rate of change in the number of delinquencies for commercial and industrial banks.

In other words, we can expect the rate business bankruptcies and liquidations to accelerate going forward.  I guess if Yellen wants to get tagged with that legacy then the Fed should go ahead an push up rates another 25 basis points in June.

4 thoughts on “SoT Market Update: Federal Reserve Intervention In Full Force

  1. Hedge fund took out loan for private jet amid bribery inquiry

    Under its debt covenants, Och-Ziff is under pressure to retain the $42bn investors have put into its funds.
    According to its financial statements, the hedge fund’s total fee-paying assets under management must not fall below $22bn for two successive quarters or it will be judged to be in default against its five-year unsecured revolving credit facility.<————

    http://www.ft.com/cms/s/0/70e9b236-1d0d-11e6-b286-cddde55ca122.html#ixzz49CSs3i8M

    Wonder what higher rates would do to others AUM in same situation?POOF

  2. A song about the Fed illegally buying SP 500 stocks to ramp them up to approximately “unchanged” (still churning and churning around 2050, over and over for the past year) after 3:30 PM EST today:

  3. Dave, I wouldn’t be surprised at all if the FED raised rates in June. If you consider the 10 Year T No (^TNX) since Dec’15 you’ll notice that the yield has fallen since Yellen allegedly has added + .25 to the Fed Funds rate. So how is that possible? Telling the world: “Hey, the US economy is in great shape, we raised the interest rates to cool down the ecenomy”, on the other hand yields of the 10yr treasury magically falling since last Dec.. Obviously somebody is buying those papers. So why should that not be possible a second time? The only thing these criminals at the central banks are interested in right now is to keep their credibility. Which requires them to stick to their words. They know a black swan is coming. When it hits they then will tell the sheeples: “Look, we have done a great job, we saved the economy in 2008, brought it back to normal condition and were on our track of brining interest rates to normal level. Everything was on path to normal. It is not our fault that these ISIS terror attacks……….caused this financial mess/melt down”. Seriously, does anybody think even for a fraction of a second that these banksters will let allow the people to blame them for the coming desaster? No slightest doubt in my mind, they will provide us a culprit. Putin, ISIS……you name it. Until then they will keep fooling us like they did recent years.

  4. One of the best SOT’s Dave. This show drilled down to the heart of the problems for little guys’. .Gov has to maintain the illusion of healthy supply…I’ve had this feeling that in order to maintain physical commodity supplies they have too create this meme that, look see we’re going to get you better prices, don’t walk off that farm, don’t walk away from that mine…notice how prices drifted upwards on a broad range of commodities for a while including oil!! and the over capacity is just insane…the worlds pPPT’s are just destroying completely pricing in all markets…I believe that it has always been about maintaining the illusion that State pensions can be met…when they know its’ over..

    I’ve been screaming for a couple of years now, if you are a producer of anything (on borrowed money)..and your continuing to BUY the prices will go up meme…you are the smuck that is keeping the biggest gov ponzie in history going..and yes you are still going to lose the farm/ mine….WALK AWAY….buy silver and after it collapses pick your property backk up for pennies”’Just My Opinion….

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