Plunge Protection Team (PPT) Real?

[nugundam]

Hi,

Just did a google search on them (just found out about it last fri., never knew such a thing even existed) and was wondering how many traders out there actually believe they are responsible for manipulating the markets or is this just another conspiracy theory. Is their any hard evidence that points to the fact that they are really behind the scenes these past few weeks? (how come you never hear CNBC talk about it) Maybe comments from some of the more experienced traders out there could give their opinion. The reason I asked is because the wiki states "This theory claims that the Working Group is a scheme to manipulate U.S. stock markets in the event of a market crash by using government funds to buy stocks, or other instruments such as stock index futures." Sounds very plausible and perfectly explains the wild swings we've been having these past few trading sessions.

As a trader, do you actually base your strategy in anticipation that these fellas will more likely than not come and save the day? Is it possible some hedge funds rely on them or is this only a concern for the small time trader?

Finally, assuming they are for real in that they have been intervening in the past couple of weeks how long do you think they can hold the markets up like this? I suppose theoretically, since they are using governement funds they can do it forever is it not?

Just wanted to get some feedback on the thoughts on the matter as sometimes I feel the price action movement lately seems like a mickey mouse operation in the sense that its very erratic and not orderly (also amazed to see how sentiment can change in a split second like last friday)

 

[Tracy McGreedy]

look at the US dollar.

Quote from nugundam:

Hi,

"This theory claims that the Working Group is a scheme to manipulate U.S. stock markets in the event of a market crash by using government funds to buy stocks, or other instruments such as stock index futures." Sounds very plausible and perfectly explains the wild swings we've been having these past few trading sessions.

 

[nutmeg]

"This theory claims that the Working Group is a scheme to manipulate U.S. stock markets in the event of a market crash by using government funds to buy stocks, or other instruments such as stock index futures."
_________________

I don't think they use govt funds per se, the govt eases margin requirements for banks, etc hence liquidity.

 

[ammo]

If the fed is a private agency and there primary goal is to work and profit with large banks (most owned or affiliated partially with big trading houses) than wouldn't it be in there best interest to keep the business up and running rather than go out of business? If you were going under and found a way not to, would you take it?

 

[nutmeg]

Quote from ammo:

If the fed is a private agency and there primary goal is to work and profit with large banks (most owned or affiliated partially with big trading houses) than wouldn't it be in there best interest to keep the business up and running rather than go out of business? If you were going under and found a way not to, would you take it?

Interesting question which I do not know the answer to but my guess would be, this is the point where gov't and business part ways and the subject becomes a matter of investor confidence and psychology in what the gov't lets fail or rescues.

 

[ammo]

Quote from nutmeg:

Interesting question which I do not know the answer to but my guess would be, this is the point where gov't and business part ways and the subject becomes a matter of investor confidence and psychology in what the gov't lets fail or rescues.

i think the govt and corporations are joined at the hip and we will survive this crisis as we have all others and business will go on as usual, it's just a little more selling of the soul(washington's and fed's and ultimately America)

 

[hughb]

If you want to call the WGFM the PPT, sure. It was more bueracracy created by the Reagan admin after the 87 crash. Each member has an assigned job to do in the event of a chaotic event, but it's never been disclosed what it is they will do, except in the case of the President who can order the exchanges and banks closed.

For the most part, the PPT is an imaginary cabal that keeps wiping out the equity of crashistas who can not admit that they were wrong. It's a great tool for avoiding responsibility for bad trading.

 

[ammo]

Quote from hughb:

If you want to call the WGFM the PPT, sure. It was more bueracracy created by the Reagan admin after the 87 crash. Each member has an assigned job to do in the event of a chaotic event, but it's never been disclosed what it is they will do, except in the case of the President who can order the exchanges and banks closed.

For the most part, the PPT is an imaginary cabal that keeps wiping out the equity of crashistas who can not admit that they were wrong. It's a great tool for avoiding responsibility for bad trading.

it seems to be very useful in its ability to change disasters into small setbacks

 

[The Kin]

Quote from hughb:

If you want to call the WGFM the PPT, sure. It was more bueracracy created by the Reagan admin after the 87 crash. Each member has an assigned job to do in the event of a chaotic event, but it's never been disclosed what it is they will do, except in the case of the President who can order the exchanges and banks closed.

For the most part, the PPT is an imaginary cabal that keeps wiping out the equity of crashistas who can not admit that they were wrong. It's a great tool for avoiding responsibility for bad trading.

Let's be honest here. Many people who made great trades still say there is a PPT. Hillary Clinton even mentioned it in one of the democratic debates back in January.

It's not an excuse for bad trading, althought some bad traders will use it from time to time.

Here the PPT has to defend themselves against Congress. It does exist. It's pretty obvious that GS is their proxy.