Market Maniupation?

I have wanted to write about this for a long time. The market seems to move in an illogical way.

There has been so many negative news, especially last two days. If someone told you the headlines, you would have guessed market would have tanked. But yesterday, in the morning, they were up. At the end of the day, they were down a little.

Here is an article on CNN Money http://money.cnn.com/2008/02/19/markets/morningbuzz/?postversion=2008021910. This articles was written yesterday - even before todays bad news.

I doubt, as Brian Stine says in the article, that the doom and gloom is baked into stocks.

Mr. Practicle on Minyanville seems to have a better explanation.

I don't know if it's the fed or the PPT, but there is definitely some manipulation going on. This is a topic we have discussed before. But it seems to be more and more blatant attempts to prop up the markets.

Here are just a few headlines from last two days.

• Consumer prices rise more than forecast
• Port Authority of New York Bond-Auction rate falls to 8% (From 20%)
• KKR Financial delays Repayments
• Credit Suisse writes off another $2.5 Billion
• New Single-family homes at 17-year low
• Corporate Bond Default Risk Soars to Record on Speculation Over CDO Losses
• Alliance & Leicester Plummets to Record Low After Abandoning Profit Target
• Standard Chartered Drops Plan to Refinance $7.15 Billion Whistlejacket SIV
• Not to mention all the mono insurer headlines

Your Tax dollar in action.

No sooner do I Post this, and wham! The Stock market takes off again. As in Minyanville article, it's easy to see that there are people out there willing to pay extra money.