Wednesday, January 6, 2016

Just following the Fed's lead

Bloomberg: The market for US Treasury bonds may have been rigged.
The plaintiffs — Cleveland Bakers and Teamsters Pension Fund, represented by law firm Quinn Emmanuel Urquhart & Sullivan — claim that Treasury dealers including Goldman Sachs, JPMorgan, and Morgan Stanley coordinated to manipulate primary market Treasury auctions.
They cite data from Rosa Abrantes-Metz, who has testified in other market-rigging cases and is an adjunct associate professor at New York University.
According to her analysis, 69% of a certain type of Treasury auction — for so-called reissued Treasuries — look suspicious.
Goldman Sachs and Morgan Stanley declined to comment.

Of course it is rigged, there is a monopoly source of n ew debt, the Republican Communist party, in the Senate..    Not only that, we actually pay boneheads at MIT a fee for figuring out how to rig rates.  and listen to Stanley Fischer, he says the Fed and Treasury have rigged rates through al 2016, he has a rate raising schedule/  Then we have the Kanosian crew who claim the right of rate manipulation..

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