This is not the first time the Fed has come under such suspicion. In 2013 Time Magazine's Dan Kadlec wrote the following about the unprecedented number of central banks that were moving into stock purchases:
"The U.S. Federal Reserve does not appear to have joined in the stock-buying trend. The Fed is not permitted to make direct stock purchases. But there is nothing to prevent it from funding a Special Purpose Vehicle that buys a broad basket of stocks through indexes or Exchange Traded Funds. In the past year, Wall Streeters have speculated the Fed would buy stocks as part of its quantitative-easing programs to stimulate the economy."More suspicions were raised on May 23 of last year when long-tenured New York Post financial writer, John Crudele, suggested that the heavy purchases of stocks by the Swiss central bank could be "as an agent of US financial authorities who fear that a big decline in stock prices would be against America's national interest?"
According to the latest official annual report of the Swiss central bank, it held $140 billion in stocks as of December 31, 2016, a 30 percent increase over 2015. We also reported on August 25 of last year that the Swiss central bank had a very large appetite for big U.S. tech stocks. We wrote:
"Since June 30 of last year, Switzerland's central bank, the Swiss National Bank, has increased its stock holdings of five U.S. social media/tech stocks from $5.3 billion to $9.38 billion, an increase of 77 percent in 12 months. The stocks are Apple, Alphabet (parent to Google), Microsoft, Amazon and Facebook. The stock information comes from a 13F filing the Swiss National Bank made this month with the U.S. Securities and Exchange Commission (SEC), a quarterly form required of institutional investment managers who manage $100 million or more."Apple and Microsoft are two of the component stocks of the Dow Jones Industrial Average, a popular index used to gauge market strength. Apple, Alphabet, Microsoft, Amazon and Facebook are all components of the Nasdaq 100 index, another closely watched indicator of stock market strength.
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Comment: City of London think tank predicts "imminent" US stock market crash of up to 50%