Is the government manipulating the market?

CreditCardChris

If the Fed is willing to print unlimited money to bolster the stock market and prevent it dropping, isn't this manipulation? The entire point of a free market is it's a reflection of the actions of people. People buy and it goes up, people sell and it goes down. But with the government stepping in to absorb the sellers it seems like the government isn't allowing the market to go lower, IE they're not allowing the free market to be free. 

Wikipedia "In economics, a free market is a system in which the prices for goods and services are self-regulated by the open market and by consumers". But this isn't the case anymore? 

So with this in mind, does it mean pretty much that it's impossible to lose money buying something like the S&P500 index fund, because whenever sellers try to sell, the government will just buy it back up?

eskbanker

No, governments are far too busy trying to spread a virus via transmissions from 5G masts....

Thrugelmir

Fed is printing money to maintain social stability. 

CreditCardChris

Thrugelmir said:

Fed is printing money to maintain social stability. 

But this in itself is market manipulation. 

If the market drops, people lose money, if people lose money they panic, if they panic then social stability is weakened. The solution? Buy up the stock market to prevent said chain of events from occurring.

Thrugelmir

CreditCardChris said:

Thrugelmir said:

Fed is printing money to maintain social stability. 

But this in itself is market manipulation. 

If the market drops, people lose money, if people lose money they panic, if they panic then social stability is weakened. The solution? Buy up the stock market to prevent said chain of events from occurring.

The last thing that the majority of US citizens will be doing is investing the hand outs into the stock market. Survival comes first. 

afis1904

Brrrrr

surreysaver

The lowering of the Bank of England base rate is manipulation 

CreditCardChris

Thrugelmir said:

CreditCardChris said:

Thrugelmir said:

Fed is printing money to maintain social stability. 

But this in itself is market manipulation. 

If the market drops, people lose money, if people lose money they panic, if they panic then social stability is weakened. The solution? Buy up the stock market to prevent said chain of events from occurring.

The last thing that the majority of US citizens will be doing is investing the hand outs into the stock market. Survival comes first. 

What does a $1,200 paycheck have to do with it? I'm talking about the government printing trillions of dollars and buying up stocks. Not to make a profit, but to prevent the prices declining.

Prism

CreditCardChris said:

Thrugelmir said:

CreditCardChris said:

Thrugelmir said:

Fed is printing money to maintain social stability. 

But this in itself is market manipulation. 

If the market drops, people lose money, if people lose money they panic, if they panic then social stability is weakened. The solution? Buy up the stock market to prevent said chain of events from occurring.

The last thing that the majority of US citizens will be doing is investing the hand outs into the stock market. Survival comes first. 

What does a $1,200 paycheck have to do with it? I'm talking about the government printing trillions of dollars and buying up stocks. Not to make a profit, but to prevent the prices declining.

Well its a good job they are not allowed to do that then so you don't need to worry. Maybe if they change their policy its worth a discussion but until then...

masonic

Do you believe the financial markets were free of such manipulation in the past? Where where you in 2008, or the early 2000s?

There are no rules precluding Governments being market participants. Perhaps your objection is that they can do so with money created out of thin air? But in reality that's all money is.

Thrugelmir

CreditCardChris said:

Thrugelmir said:

CreditCardChris said:

Thrugelmir said:

Fed is printing money to maintain social stability. 

But this in itself is market manipulation. 

If the market drops, people lose money, if people lose money they panic, if they panic then social stability is weakened. The solution? Buy up the stock market to prevent said chain of events from occurring.

The last thing that the majority of US citizens will be doing is investing the hand outs into the stock market. Survival comes first. 

What does a $1,200 paycheck have to do with it? I'm talking about the government printing trillions of dollars and buying up stocks. Not to make a profit, but to prevent the prices declining.

Which stocks are they buying up?