Buying Pressure In Banks: A Coordinated Action By Central Banks Of The G-20?

The equity market Bulls tried to carry on yesterday’s aggressive corrective move to the upside by booming the banks in overseas markets again today. While little enthusiasm is apparent for stocks in most sectors, clearly there is buying pressure in the banks of China, India, UK, France, Greece, Ireland, among others.

While I don’t know the reason and I have not read anybody else make reference to this fact, I interpret the data as being a coordinated action by central banks of the G-20 to try to hold up the share prices of these companies until they are to get additional funding. In other words, the Interventionists are screwing with the capital markets again.

We are used to the intervention at this point, but it would be appropriate, I think, to be properly informed in advance of central bank action so that all of us can plan accordingly, rather than just Goldman Sachs (NYSE:GS), JP Morgan (NYSE:JPM) and the agents of these central banks. What is happening today, with central banks telling the public the markets are transparent and fair to all, is nonsense and only serves to undermine the public’s confidence in the capital market.

Intervention in the extreme as we saw in 4Q1999 and 3Q2006 always ends badly.

Like wind and water, there is a flow to capital markets, always seeking to find a natural balance. For some reason, the Interventionists have always believed they are more powerful than the forces of nature, and clearly they are not. I recommend they try to ground themselves by understanding the principles of feng shui.

http://en.wikipedia.org/wiki/Feng_shui

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