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Force Majeure Markets~ How long can this Alice in Wonderland Market ignore the numbers?
Some Primary Dealer Banks also bought Treasuries with taxpayer money from the Treasury or zero-cost credit from the Fed, reducing the money supply.
Some proprietary trading desks disguised as Commercial Deposit Banks, perhaps Goldman Sachs and JP Morgan, may have even put taxpayer or Fed money in the markets as a High Frequency Trader Algorithm, Plunge Protection Team, or Hedge Funds driving up gold, oil and stock prices for a time.
We say for a time because with interest rates rising as they did, the free money ride may be disappearing for commercial and investment banks, many of which still did not mark toxic assets to market or even foreclose on underwater loans. They may face write-offs for years, something the rallies in financials may forget.
http://www.plungeprotectionteam.com/
Incidentally, the Partners of JP Morgan, representing the Rockefellers, along with European Central Bankers representing the Rothschilds, conceived the private Federal Reserve Bank scheme in utmost secrecy in 1910 on Jekyll Island, a private Georgia club and winter retreat then owned by the world’s wealthiest families.
http://en.wikipedia.org/wiki/Jekyll_Island
The bottom line is that heroic (to some) efforts by the Fed, Government and Treasury to keep markets from doing their thing and bankrupt bad speculators, have distorted markets to prices far above their intrinsic economic value.
We see this with the skewed relationship of securities like interest-paying Treasuries and dividend-paying stocks that are trading with historically low yields despite much higher real interest rates.
When the Fed Treasury Taxpayer music stops, things could get interesting.
