Managing the markets

Markets have made a tremendous rally the past months.
We’ve had a very long rally and people are getting suspicious, we know insiders like Jim Rogers, George Soros and Warren Buffet are either selling stocks or at least not buying them.

According to this table investors withdrawed around 5 billion from the stock market last week.
If we cumulate all withdrawals from the last 8 weeks it comes to more than 25 billion USD in around two months!!

How come the markets have not declined because of this?

Some say the governments do big market-intervention nowadays, everyone – banks, the government, pension funds – is benefitting in higher market prices. Some say everything is done to achieve this.

Robert Kiyosaki, author of the book Rick Dad, Poor Dad, also thinks the markets are being “manipulated”.



It’s not that the government didn’t do this before… Governments certainly do have experience in intervening on financial markets.

In 1989 already the Robert Heller, by then the governor of the FED, said in an interview in the wall street journal that the FED was very interested in the possibilities of supporting the stock-market by buying futures.

Also from summaries of meeting of the FED in 1994 may be concluded that the FED has experience in intervening in financial markets. Under the heading ‘Central bankers eye unusual steps’ in a article on Reuters (29th of june 2003) Greenspan stated that measures once not acceptable – like the regulations in Financial assets – might become normal.

I think they may have become normal by now…