I got yer plunge protection right here for ya!
Posted on 10/30/2014 1:19:32 AM PDT by dennisw
But times change and so does thinking. In recent weeks, we’ve discovered that the CME Group, the exchange in Chicago, has an incentive program under which foreign central banks could buy stock market derivatives like the S&P contracts at a discount.
It’s not that these foreign banks need a break on the price of their trading. But it does show that there is a back-door way — through foreign emissaries — for the Fed and the US government to prop up stocks like Heller suggested, and — maybe — not get caught.
But let me explain about the unknown forces in the market these days. Call it by a nickname — the Plunge Protection Team. Or call it the President’s Working Group on Financial Markets, the official name given to the group when it was formed by President Ronald Reagan after the market turbulence of 1989.
These forces may be working from a script in the “Doomsday Book,” which the US government recently fought to keep secret when it was brought up last week during the AIG trial in Washington.
Here’s the bottom line: Someone tried to rescue the market last Wednesday. And it’s becoming a regular occurrence.
The details of last Wednesday morning are these: At the same time the Dow was off 350 points, the S&P index was down 43.80 points, That was an enormous decline in just 11 minutes of trading and it was an indication that Wall Street was not having a good day.
Then, someone (or something) started buying S&P futures contracts en masse. Twenty-one minutes later, the S&P index had regained 30 of those lost points and was back at 1,861.
(Excerpt) Read more at nypost.com ...
The stock market is rigged and anyone who has a few smarts knows it.
You have about 1 year (+-) to prepare for the Fed interest rate rise. That is when things will get tough and the major problems will start.
That 17 trillion tab we’ve been amassing will have to be paid back with higher interest rates.
It’ll be about 20 trillion by next year with our bombing of ISIS, added healthcare costs, and maybe an attack or two.
If you haven’t prepared you’d better start now. When the debt comes due, and taxes go up to cover the expense, the rebellion will start.
I certainly believe that the $75 to $85 Billion dollars a month the Fed has been printing up for the last 6 years to buy treasury notes and Mortgage Backed Securities has been like crack to the NYSE. It is going to be interesting to see what happens when they have to go cold turkey.
Well Yellen announced last night that is exactly what she is doing NOW.
There are some Wall Street sphincters pinching a few seat covers, I’d expect.
Not so much fixed; but rather, "key players" have the advantage over the average joe, much like a card counter at the blackjack table. The key players, like card counters, can lose like the rest of us, but the odds of winning are skewed in thier favor.
Doubtful. I wonder how old the author is?
The author has been at the NY Post since the early 1990s. There have been accusations that the Fed works with a certain HF trader to move the SP index up and down when it is warranted. Via SP futures
I don’t doubt there’s manipulation. Only that it started after 1987, if it started under Reagan.
But this is just one more of “the levers of a managed economy”. Read, “I Pencil.”
Plunge Protection Team (PPT) Definition | Investopedia
www.investopedia.com/terms/p/plunge-protection-team.asp
Investopedia
The Plunge Protection Team was created to make financial and economic recommendations to ... The team was created in response to the 1987 market crash.
___________fwiw____________
Exactly.
“I certainly believe that the $75 to $85 Billion dollars a month the Fed has been printing up for the last 6 years to buy treasury notes and Mortgage Backed Securities has been like crack to the NYSE. It is going to be interesting to see what happens when they have to go cold turkey.”
Cold Turkey! Are you predicting a post Thanksgiving demise?
I totally agree with your comment. I’m amazed with the manipulation that has occurred ever since Clinton changed the computation of the Cost of Living Index in 1992 and played all the games with gold futures and the currency stabilization fund.
I did not foresee the ability to keep the balloon inflated by fooling all of the people all of the time. If the senior citizens ever found out that their Social Security benefits would be double what they are today if Slick Willie had not cheated them by changing the benefit increase computation, they would be furious.
I’m mostly retired and I shop nearly every day for the best grocery deals I can get (1 mile away). It doesn’t take a rocket scientist to see that a lot of the basic staples cost a lot more than they used to. I’ve seen milk, hamburger, bacon and other common foods higher than a gallon of gas for quite a while now.
I also see diversions that producers have gone to make the shopper they aren’t paying more (e.g., bacon used to nearly always packaged in 1lb packs - I’m seeing more and more 12 ounce packs with prices that used to be 1lb rates - that goes for same sized bags and boxes, but with less food in them).
Yet, somehow, none of this ever works its way into government’s assessment of how things are going.
>> the CME Group, the exchange in Chicago, has an incentive program under which foreign central banks could buy stock market derivatives like the S&P contracts at a discount.
Now please close the loop and explain exactly how buying *derivatives* “props up” the market.
I’ll wait patiently.
There’s about a quadrillion dollars worth of credit derivatives which are basically a form of insurance against these kinds of losses. When the world economy crashes hard who will pay for them?
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