The more I think about the whole concept of the so called Plunge Protection Team the more I realize just how stupid people are. Just so I understand this correctly, the Easter Bunny / Fed, has given an open wallet to select brokers and banks to BUY the market at will. Do I understand this right ? Now, Exactly how would that work from a logistical point of view ? The Fed shows up with a truck load of cash each morning to the members firms. This whole PPT thing is nothing more then an elaborate hoax designed to hide the FACT the Bush administration is in big doo doo and has F'd up big time.
Everyone knows the PPT exists and intervens in the market. What do you think the Sunday rate cut was? The only thing in question is the extent of the PPT. Correct me if I'm wrong, but please provide proof that there is no PPT.
Seriously. It is not like a large IB would be about to go bankrupt and the fed would pay 29 billlion for there assets. (I personally don't believe in the PPT, but the fed has been doing some crazy shit that they don't seem authorized to do in my book.)
Dude, Everytime Paulson and Bernanke meet to discuss the markets it's a meeting of the PPT. Everytime they act, it's government intervention. Again as someone said, $29 billion loan to JPM for BSC is another example of PPT intervention. Opening up the discount window to investment banks is PPT intervention. The question at hand is if the PPT intervens in the markets during big down days. (i.e. Do they buy stock index futures?) No one really knows.
all good and valid points. So....given the above facts/actualities is it not conceivable that they would also intervene in a plunging makret as a circuit breaker? Not so much for a bailout to big banks but to avoid panic. Also ask yourself who you really think runs this country from the top down. Is it Juan the dishwasher and 1000 of his buddies in his union or is it the Rockefellers, Buffet's and other rich mofos???