CNBC tries to discredit market action by PPT

[nkhoi]

Quote from MKTrader:

Nope. Not officially, anyway:

http://en.wikipedia.org/wiki/Executive_Order_12631

try to look for the word 'sell' in that article now count how many 'buy' in there.

 

[Mecro]

Quote from short&naked:

Correct. That's when the P/E went to crazy levels that weren't even seen in 1929 (see chart). Since the 1990s the market has been manipulated like never before. It's also partially due to lots of credit being given out (which in itself could be deemed a manipulation).

As can be seen in the chart, it was only in the 90s that the P/E stayed above 20 (oversold) for a sustained amount of time (i.e. years). Every time before, when it hit a P/E of 20, the market corrected the oversold condition (in 1929 and in 1987).

I don't know why I thought it was 1990s that it was established, the signing of the order was 1988. I'm either confusing it with something or thinking of some follow up document in 1991.

The P/Es have nothing to do with PPT. They went out of whack during the 80s bull market and the real cause was US going off the gold standard hence unhinging money supply completely.

PPT's purpose is not to prevent every plunge, it is to manipulate the market on behalf of the true big boys. They do like to squeeze the shorts of the retail players.

 

[Landis82]

Quote from Mecro:

You're a moron.

It was formed back in the early 1990s. It's been admitted to as well. The documents are there to prove it exists.

Please feel free to provide a link to the "documents" that proves that the PPT exists.

Thank You.

 

[Clubber Lang]

Quote from Landis82:

Please feel free to provide a link to the "documents" that proves that the PPT exists.

Thank You.

Read the thread.

 

[short&naked]

Quote from Mecro:

I don't know why I thought it was 1990s that it was established, the signing of the order was 1988. I'm either confusing it with something or thinking of some follow up document in 1991.

The P/Es have nothing to do with PPT. They went out of whack during the 80s bull market and the real cause was US going off the gold standard hence unhinging money supply completely.

PPT's purpose is not to prevent every plunge, it is to manipulate the market on behalf of the true big boys. They do like to squeeze the shorts of the retail players.

Perhaps, but that happened in '71 and the P/E didn't explode until the 90s, so there must be another cause.

 

[Mecro]

Quote from short&naked:

Perhaps, but that happened in '71 and the P/E didn't explode until the 90s, so there must be another cause.

Money supply started ramping up in the 1980s. Reaganomics (aka give money to corporates) and junk bonds were big drivers. That was really the beginning of the Financial industry becoming the backbone of the economy.