Stock Markets Manipulated

some people may have heard of the PPT plunge protection team who supposedly bails out the markets when they are in trouble

this group is whispered about and some traders think it is legit other's say no the (the paper trail) would be found and then some analysists that apparently think out side the box say hey wait maybe it is something else

ever since the 1987 black monday when the dow lost over 500 points or in that day over 20 %. and then later recovered due to some federal intervention it seems the term PLUNGE PROTECTION WAS COINED, and then it was interpreted that anytime there is a fall in the market and then we bounce back that the PPT was there

now skeptics argue over functions of what the PPT are really reasponsible for

www.safehaven.com...

"The thrust of the article is official's efforts to avert a liquidity crisis, which is exactly what the Fed did when it flooded the banking system with reserves following the 508-point plunge in the Dow Jones Industrial Average on Oct. 19, 1987. How an effort to ensure adequate access to credit to prevent a domino effect in the event of market meltdown morphed into a cabal to prop up the stock market is anybody's guess.

the above seems like a retort to those who see the market act "irrationally" rise and fall and point the finger at the same group of officials who acted in 87

some have insights

www.securitytraders.com...

james m quillian says

So, is the Plunge Protection Team fact or fiction? In order to justify further investigation it doesn't have to qualify as either. In the stock market suspicions count..

The chances are actually very good that clandestine efforts have been underway to elevate stock prices. But, the idea of a Plunge Protection Team is a decoy that keeps the public’s thoughts mis-focused. The original Plunge Protection Team, although counterproductive, had a few noble intentions.

Democracy leaves leaders few options if they want to remain in office. One way to avoid bad economic numbers would be to find a method that would cause financial assets to steadily increase in value.

How might an Asset Enhancement Initiative work? The Federal Reserve would create money by buying securities in its open market operations. The recipient of the Federal Reserve’s business would silently understand that its new deposits would be used to support stock prices. The Securities and Exchange Commission might conveniently ignore market manipulation when the result was a higher price.

some signs or symptoms of such an asset enhancement initiative

Using sound economic criteria to make decisions becomes futile. When assets increase in price because of a government edict consumer spending is likely to increase as well, creating a fragile economic expansion. Continued economic growth is then dependent on financial assets increasing in value year after year. Inevitably the government’s ability to cause increases in value would weaken to the point of being ineffective. A financial disaster would be the eventual result.

the winners and losers

Stock market cycles are terrific instruments for transferring money from those who earned it to others with ambiguous identities. Asking where the money went after it is lost in the stock market is like asking, where did my lap go when I stood up?

The beneficiaries of an Asset Enhancement Initiative would be parties who have held the assets from the beginning.

www.securitytraders.com...

quillian again

In Economic Theory Economic models assume that human motivations are beyond reproach. In government there is a choice of doing what is best for the economy or doing what simply looks best to voters. In a democracy, what gets done is what looks best to the voters.

very intresting analysis

also i find it interesting in the later link how he talks about "smart people" and how they often make big mistakes with money investments, until they learn to see there weakness's in reasoning and FOLLOW a better set of investment rules.

now this guy does not have the most upbeat attitude but he is a respected analyst

"the trend is your friend except in the end when it bends" -ED Sekoyta

[edit on 6-3-2007 by cpdaman]