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Great post but I have a question.

I understand that money gets printed and added to the supply of money but exactly how does the Federal Reserve put money directly into the stock market?

(I’ve heard people talk about the plunge protection team etc...)

Thanks.

Much of the overt part of the Fed investmeents are in the financial markets, rather than directly into the stock market. This has come in the form of Federal Reserve purchases of Treasury debt instruments, something like $600 billion in QE2. QE Infinite is following similar approaches.

What has some people concerned are the activities of the Plunge Protection Team with its direct intervention into the futures markets for stocks. The Fed and Obama Administration have widely announced how they are using the Treasury and the Federal Reserve to prop up the stock market as a means of executing fiscal policies. What is hard to know are the sweetheart deals being made secretly which leverages these Fed asset purchases and TARP asset management to perhaps unlawfully manipulate the stock market and individual stocks despite Federal law.

http://articles.marketwatch.com/2010-09-24/investing/30800018_1_fund-managers-fund-firm-capital-markets

http://articles.marketwatch.com/2010-01-05/commentary/30808959_1_stock-market-trimtabs-investment-research-fed-chairman

http://www.marketwatch.com/story/fund-flows-firm-suggests-government-bought-stocks-2010-01-05

http://www.morgangold.com/news/20121003-fed-using-monetary-policy-to-prop-up-stock-market-as-recession-looms.html

Fed Memo Reveals Action to Prop Up Market
Big Brother has his finger in the stock market pie, regardless of laws and regulations.
By Martin Mann

http://www.libertylobby.org/articles/1997/19971124fed_market_prop.html