Treasury Secretary Mnuchin making a big mistake!

Discussion in 'Wall St. News' started by NY_HOOD, Dec 24, 2018.

  1. for him to announce he is calling major banks and asking them to hold up the markets via the plunge protection team, that tells the public the markets are in big trouble.
    If they manage to hold up the markets, its a temporary band aid and there is something ugly that is starting to play out.
     
    VPhantom, jys78 and cdcaveman like this.
  2. Whenever the government reacts to "get involved"... it's almost always a "big mistake".
     
    Lou Friedman, jys78 and cdcaveman like this.
  3. Not everything but most and telling the public that major banks need to start buying stocks to hold up the stock market is dangerous.
     
    cdcaveman likes this.
  4. Banks aren't the Fed. The banks have no obligation to "support the market". They are not going to risk their capital just because some government asshat begs them to.
     
    apdxyk and Humble Investor like this.
  5. I totally agree with you. However, the fact that Mnuchin actually asked them to do that is troubling.
     
  6. Yes. Shows government (Trump) desperation. But in reality, a 15-20% correction in the market is actually just "noise".
     
  7. manonfire

    manonfire

    The ppt was suppressing vol all throughout Yellen's tenure at any sign of trouble, even at all time highs. The first day of Powell's regime 2/5, was the vol explosion. The President's Working Group has a broad mandate to maintain investor confidence. Operations are carried out by the New York Fed. Powell and Yellen just have differences as to when those measures need to be deployed. But make no mistake they have been deployed continuously for the better part of the last 10 year.
     
    apdxyk and jys78 like this.
  8. I understand what you are saying but this 15-20% happended very quickly and it seems to be accellerating while the fed is unwinding its balance sheet.
     
  9. First thing this plunge protection team need to save is the plunging index futures today after the announcement.

    Index futures seem to agree with you this morning.
     
    comagnum likes this.
  10. I also think the situation with General Mattis isnt helping. He represented some stability in the Trump administration. Even though Pelosi and Schumer can give a shit less about Syria but all of the sudden act like they do, syria will be a mess and a breeding ground for terrorists if we leave.
     
    #10     Dec 24, 2018