It really isn’t crazy at all….in the bond markets, they telegraphed the plan to buy MBS’s months before it actually was announced as Fed policy, by telling the big banks to gear up for the refi’s, etc…all you have to do in the bond markets is listen to Bill Gross at Pimco–he loaded up on MBS right before the announced purchase. Pimco is sorta the Goldman Sachs of bond managers, knowing what the Fed is about to do– in my view, because it tells the Fed what to do.

In fact, Gross Bill just said the Fed will have to buy more than $300 billion in Treasuries for its QE strategy. You can virtually bank (no pun intended) on it that they will:

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a9BymKxDE0_o

Now if we could figure out who is behind the stock markets. GS, perhaps?

It’s a highly educated/sophisticated group and they’ll stir the pot if they feel completely shafted.

Does it mean inheritance taxes will go through the roof or will they be proactive over the next decade(s) to also protect their kids/heirs?

Maybe the big O was giving off a big hint to all of us when he implicitly endorsed buying the market literally a day or two before the March 9 lows because he knew what was coming? Just a thought…sounds crazy, I know, but does it really when one thinks about what’s transpired since then?

Closed out a few SPY puts this morning that I opened Friday when the S&P hit 870. Got even more than I thought I would at the opening.

We are stuck right now, not enough news to move anything one direction or another. A lot of gaming the system seems to be going on, or attempts to game the gamer. I feel that its going to take a big percentage gap move 5% or more to break out of this.

Supposedly, the market is mainly moved by the big houses. (they should all be in the big house). My guess that the pattern is the result of some trading strategy by some of the big boys.

There’s something quite strange lately about the stock markets: Down every morning for an hour or two that looks like might turn into a rout, then the fall reverses course to make it back to even, or fairly close, by the close.

Am I seeing a pattern where there is none? Or is the Fed also printing dollars to juice the stock markets? Or is it “encouraging” (like it “encouraged” Ken Lewis to not tell his shareholders about Merrill’s stinky assets) entities it now more or less has ownership stakes in, to buy on the dips?

I never really ascribed to the PPT, but this seems more nefarious, like the PPT has become the volatility reduction team. Are things really as benign as the market seems to be indicating?

Putting my tin-foil hat aside, you can never underestimate the willingness of government to take any measures it can to maintain its grip on power, so suspicion and skepticism are always warranted, and especially now since the Feds have basically nationalized about half of the American economy.

It occured to me that the question may have been a supplied by some brokerage house. It would have taken a bit of work to come up with the % figures claimed in the question.

I remember last year someone on CNBC interviewed David Einhorn. It was a normal morning show interview, but the interviewer was primed like a DA for cross examination and you just knew some of the questions were supplied by Lehmann or whomever he had recently unmasked as insolvent.