"According to former congressman
Mr. Robert Bauman-
'Buyer Beware": The Rallies are Rigged
In the past few years there have only been three major long-term rallies. They began on September 17, 2001...July 24, 2002...and October 7, 2002...
On each of these dates a number of curious events occurred...
The markets opened and the indices began plunging recklessly...But by early afternoon it was if the angels had arrived...and the markets were brought back from the brink of collapse...
Each time a large unnamed buyer in the futures market secretly swept in and bought up massive quantities of S&P future contracts - making reckless bets that the S&P would go up - even though it was obvious that it was going to fall. This is a sure way to get rid of a lot money - very quickly. However, because such a large amount of money was wagered on the S&P's rise - it was actually enough to reverse the market's fate.
This simple trick was first suggested by Robert Heller - a Federal Reserve Governor - in 1989 (the year after the creation of the Plunge Protection Team). He argued that it would be an easy way to rig the markets...
The move (so far) has successfully brought the markets back each time...even so much as to completely reverse the market's fate and transform the crisis into a rally...further propping up the already way overvalued indices. The PPT Rallies: Blatant manipulation of the highest order.
On each of these dates the markets were plunging precipitously. Then a huge unnamed buyer secretly came in and bought up large amounts of S&P future contracts...reversing the market's fate and transforming the crisis into a false rally...
One of the rallies began after the September 11 terrorist attacks. The markets managed to show an astounding rise for 3 to 4 months proceeding the attacks. The U.S. media called it a "patriotic rally". The European Press (more accurately) called it a "PPT (Plunge Protection Team) rally". Another rally began on July 24, 2002 amidst the shocking news of the unprecedented corporate accounting scandals - an event that should have sent markets spiraling. The European Press again referred to it as a "PPT rally".
What's more at the Federal Open Market Committee meeting held on Jan 29-30, 2002 the Fed pondered using "unconventional methods" to stimulate the economy. Even more shocking: earlier this year the Financial Times (London) quoted a Fed official who did not want to be named as saying one of the extraordinary measures considered in January was "buying U.S. equities".
Plus a number of curiously understated articles in the popular press have also begun to acknowledge the existence of the Plunge Protection Team - and the dangerous actions its begun to engage in, including the Washington Post , Sydney Morning Herald , the Guardian (London) and the New York Post .
DON'T BELIEVE THE PLUNGE PROTECTION TEAM EXISTS?
Take a look at these tell-tale reports from the popular press...
On February 23, 1997 the Washington Post published an article
acknowledging the existence of the Plunge Protection Team. This
was the first article ever to feature a story in the mainstream
press on this secret government team.
On April 5th 2000 the New York Post online reported:
"... something happened at around 1.00pm our time yesterday that pulled the stock market back from the edge of the cliff... one
minute the NASDAQ was down 11%... and then it suddenly rallied
several hundred points in the matter of an hour". Once again -
someone started buying large amounts of stock index future
contracts through Goldman Sachs and Merrill Lynch - though
neither brokerage firm (the article admitted) would comment on
who made these purchases. The article later admitted the
existence of the Plunge Protection Team.
On October 13, 2000 The Sydney Morning Herald in an article
entitled "Angels from on high drag markets to safer ground" sited
a classic case of "divine intervention". It was Wednesday October
11th... the Dow Jones Industrial Average plunged 435 points (4.3%) and the NASDAQ plummeted 187 points (5.8%) in the first 10 minutes of trading. Then as the article stated "the angels
arrived". The market rebounded miraculously. The DOW only ended 1.7% down for the day and the NASDAQ was down just 1.32%. The next day the markets rallied. The thing is, nobody knew why.
Traders were stunned at the turnaround. What was clear is that
the reversal was engineered in the futures market. It took a lot
of heavy buying by the major Wall Street Houses to bring the
market back that day - but no one would reveal the source of the
buyers.
The Guardian reported on Sunday September 16th, 2001 - 5 days
after the September 11 terrorist attacks - "... that a secretive
committee... dubbed 'the plunge protection team'... is ready to
coordinate intervention by the Federal Reserve on an
unprecedented scale. The Fed supported by the banks, will buy
equities from mutual funds and other institutional sellers... "
A New York Post writer had a telephone conversation with a very
worried Fed official on September 17, 2001 - the day the stock
markets reopened after the terrorist attacks. They discussed how
the Fed could easily intervene in the market by purchasing stock
index future contracts - as it's an inexpensive and apparently
foolproof way of rigging the market without leaving a trace.
An article in the Financial Times on Feb 21, 2002 about Japan's
Stock Buying Body and the Plunge Protection Team commented that it was... "Arguable the PPT's motions helped quell the tides in September." They later said that "... government backed equity markets, as Japan has recently become aware, do not work... Plunge protecting the world's markets may be a hazardous pursuit".