The article also contains a quote from a FRE flack that adumbrates more problems down the road: “It is important to note that our understanding with Treasury is that any agreement to purchase equity can only occur with the mutual agreement of both parties.” Great: give us a line of low-cost UST credit, but remember our executives are compensated in stock options.

Contrary to what? Certainly not to his pals Bernanke or Paulson. Just as he did after the BSC fiasco, PK tells us we must hope that this intervention works. Since PK’s voice is about as far left as the DC and Wall Street crowds will hear, it looks like there will be no dissent from the Treasury/Fed plan.

Thanks, I should have been more clear. There is a rich (and pretty open) history of currency and interest rate intervention. It’s the notion that there might be officially orchestrated or worse funded games-playing in equities which is troubling and more than a bit of a stretch. Since when is the level of equity markets (as opposed to rules about how they operate) a matter of public policy?

The Bank of England wasn’t quite so successful.

This clip is from an excellent BBC documentary called “The Mayfair Set” by Adam Curtis. It shows live footage of trading floors during the crash of the pound and great commentary by George Soros (”we had a very strong sense that we were on to the kill”)

Yves, I know you’re a big Adam Curtis fan. IMO this is possibly his best work. It is focused on the financial world: securitization, Milken, market fundamentalism, etc.. If you haven’t already seen it, you must watch the whole series.

the black monday footage starts at 7:00

http://video.google.com/videoplay?docid=5728529590304344977&hl=en

You may wish to look further into the Exchange Stabilization Fund – ESF.

http://www.treas.gov/offices/international-affairs/esf/

Yes, it has the stated charter that “The ESF can be used to purchase or sell foreign currencies, to hold U.S. foreign exchange and Special Drawing Rights (SDR) assets, and to provide financing to foreign governments.”

However, under Robert Rubin the Treasury become more aggressive and preemptive in the definition of its prescribed activities, including the occasional dip in the equity markets, specifically but not limited to the SP futures.

Speaking as an American, honestly, that’s probably a rational decision. It’s best for you and also best for us, forcing us towards some form of austerity and mild idiocy reduction.

Please give us 15 years, and we’ll be happy to rejoin you and your world.

I will make this REALLY SIMPLE for you.

As a Non-American can I expect any time soon that you will pay me what you owe me.

I’ll take that as a NO.

Bye Bye AMERICA

Calculated risk reporting that the Fed is backing the FHLB debt as well..is there any news to this extent.

What would it take?

Ask yourself how many players in the markets have the kind of firepower needed to basically seal a concrete floor under the S&P when the action is very clearly downtrending FAST.

And most importantly, cui bono? (who profits)