Fed is caught rigging the stock market

• At least one mainstream media writer is waking up to the fact that the power elite manipulate the stock market.

Under the direction of Fed Chairman Alan Greenspan and Treasury Secretary Rubert Rubin, a multibillion dollar "slush fund" is used to manipulate the stock market. That international exclusive appeared in this populist newspaper earlier this year.

Now comes New York Post columnist John Crudele who points out that The Wall Street Journal has actually let the manipulation cat out of the bag. But apparently the Journal doesn't know what it has done. Says Crudele:

"The Federal Reserve is just dying to admit that it has been doing brilliant -- but alas, questionable -- things to keep the stock market bubble inflated. A Wall Street Journal article on Nov. 16 is the closest the Fed has ever come to making this admission, although the newspaper apparently didn't know what it was on to."

The Post columnist referred to a Journal story about the bailout of the "hedge fund,' Long Term capital Management, and "how the Fed stepped in to save the day."

Typical of Journal stories, the fealy interesting material is buried deep down where people have already lost interest Crudele says the story "gets interesting in the seventh paragraph."

WHO DOES WHAT?

A man by the name of Peter Fisher, the No. 2 man at the New York Fed, runs the Fed's trading operation, explains Crudele. It seems that Fisher is the Fed's eyes and ears on the inner working of stock, bond and currency markets and is given "a wide degree of latitude about deciding when certain events post broader risks," the Journal article says.

As explained by Crudele, Fisher begins work at 5 am by checking the status of overseas markets and ends at 11 pm the same way. "In between...Fisher SWAPS [emphasis Post] intelligence and rumors with traders and dealers from his office in the Fed's 10th floor executive suite that overlooks the trading floor he runs ..."

Say Crudele:

"As I pointed out in a previous column, the market has done dome strange things in the wee hours of the morning, especially between 5 am and 7 am, which ultimately affect how equities do in the New York market."

The Post columnist makes a salient point: he's not against the government rigging the market, but he says that the fact should be made public and not remain the exclusive knowledge of insiders.

Prophetically he previously wrote that "someone at the Fed or the Treasury ought to figure out how to rig the market and start doing it." and back in October of 1989, the Journal ran a piece quoting then-Fed Governor Robert Heller stating that it was the government's responsibility to rig the market in times of emergency.

Japan rigged its stock market for years, until the bubble burst recently and the economy of the country collapsed, the columnist points out. And if people know the market is rigged, they might want to invest even more. But, "Washington should be responsible enough to alert the investing public" about its maneuvering, says Crudele.

SWAPS WHAT?

"What exactly does Fisher give to these traders and dealers he talks to a 5 ... in the morning?" asks the Post columnist. "Swaps, which is the word the Journal reporter cam away with, implies a give-and-take. What is Fisher, the second highest person in the New York Fed's hierarchy, giving to traders?"

Crudele then asks the question The SPOTLIGHT has already answered, to wit: "Is Fisher giving away what Wall Street calls inside information?"

The columnist points out that with the Fed already having power over money, "It would be a big expansion of the Fed's powers to suddenly have authority over stocks."

Crudele wanted to talk with Fisher. He told the Fed he wanted to discuss the No. 2's interest in the stock market "and the swapping of information." No such luck.

The Fed wouldn't allow it. A Fed spokesman said something on the order of, "I think the spotlight on him right now is a little too bright."

Says Crudele: "You're damned right it is too bright -- it almost caught him doing his trick with the market."