Voodoo Economics - definition:
https://www.investopedia.com/terms/v/voodooeconomics.asp
*Creation of the Federal Reserve
Great book that covers the "Federal" Reserve: Creature from Jekyll Island by G. Edward Griffin
*The Working Group on Financial Markets AKA the "Plunge Protection Team"
Created by Executive Order 12631 in 1988 by Reagan
https://www.investopedia.com/terms/p/plunge-protection-team.asp
https://home.treasury.gov/news/press-releases/sm1086
https://www.archives.gov/federal-register/codification/executive-order/12631.html
*Exchange Stabilization Fund
"Emergency Reserve Fund of the US Treasury Department"
https://www.investopedia.com/terms/e/exchangestabilizationfund.asp
https://home.treasury.gov/policy-issues/international/exchange-stabilization-fund
*High Frequency Algorthimic Trading
Uses computer program with a defined set of rules or triggers to buy & sell securities at an extremely fast pace
In theory, can produce profits at speed & frequency that are impossible for human traders/investors
Defined set of instructions based on timing, price, quantity, any mathematical model.
Can even "scan" headlines for certain words and be triggered based on what's being reported on a given day or time
https://www.investopedia.com/articles/investing/091615/world-high-frequency-algorithmic-trading.asp
https://www.investopedia.com/articles/active-trading/101014/basics-algorithmic-trading-concepts-and-examples.asp
*Flash Crash
There have been a couple of these in history, but the main one I'm familiar with was the "Crash of 2:45" which happened on May 6th in 2010 - TRILLION dollar stock market crash (before recovering ALMOST entirely before the closing bell that day)
https://www.investopedia.com/terms/f/flash-crash.asp
*Trading Desk at the Federal Reserve (for "short-term objectives for open market operations")
https://www.federalreserve.gov/monetarypolicy/bst_openmarketops.htm
Side note on gold stocks & Warren Buffet re-allocating his portfolio to include 20.9 million shares of Barrick Gold, while reducing his positions in banking & financial stocks:
(He has mocked gold as an investment for years... as a reminder, I do not believe in gold or precious metals as an investment, but as a tool for wealth/purchasing power preservation as the USD becomes more debased)
Barrick's shares rose 7.4% after hours (that's pretty significant)
Articles: https://www.marketwatch.com/story/buffetts-berkshire-buys-gold-miner-barrick-slashes-wells-fargo-and-jpmorgan-stakes-amid-coronavirus-2020-08-14
https://www.bloomberg.com/news/articles/2020-08-14/buffett-s-gold-averse-berkshire-jumps-into-a-big-bullion-miner
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