Plunge Protection Team

Last week, in the article Stacked Deck, I alluded to the fact that the government might be intervening in the market privately as well as publicly. I don't want you to think of me as a conspiracy theorist that wears a tin foil hat. There is a "Plunge Protection Team" that intervenes in markets officially called the President's Working Group on Financial Markets. Don't take my word for it. Here is an excerpt from an article in The Telegraph from January, Bush Convenes Plunge Protection Team

"On Friday, Mr Bush convened the so-called Plunge Protection Team for its first known meeting in the Oval Office. The black arts unit - officially the President's Working Group on Financial Markets - was created after the 1987 crash.

It appears to have powers to support the markets in a crisis with a host of instruments, mostly by through buying futures contracts on the stock indexes (DOW, S&P 500, NASDAQ and Russell) and key credit levers. And it has the means to fry "short" traders in the hottest of oils."

1 comment:

thatsabet said...

Its real