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"Plunge Protection Team" - (PPT)

JoeD
edited May 2019 in Off-Topic
I had never heard about "PPT" until today.

Some call it a conspiracy theory.

This group is headed by the Secretary of the Treasury; other members include the Chairman of the Board of Governors of the Federal Reserve, the Chairman of the Securities and Exchange Commission and the Chairman of the Commodity Futures Trading Commission (or the aides or officials they designate to represent them).


The "Plunge Protection Team" (PPT) is a colloquial name given to the Working Group on Financial Markets by The Wall Street Journal. The Plunge Protection Team's official mission is to advise the U.S. president during times of economic and stock market turbulence. Critics fear the Plunge Protection Team doesn't just advise, but actively intervenes to prop up stock prices—colluding with banks to rig the market, in effect.

Well, I've always wondered if there was somebody behind the scenes, pulling the levers. And maybe...just maybe...there really is! But in this age of computer trading, I'm not so sure the bots (algos) don't own the market.

Comments

  • Old_Skeet
    Hi @JoeD,

    FWIW ...

    I have known of the Plunge Protection Team, for sometime, that was started by executive order under President Ronald Reagan. I personally believe that it has engaged in the capital markets from time to time as the government felt warranted. After all, when Bear Sterns blew up, leading us into the Great Recession, there was no doubt in my mind that the Plunge Protection Team was called upon to take action to bring order to the capital markets. As I recall, a good number of financial institutions were forced to merge, by the government, during this period of time.
  • TedTed
    edited May 2019
    @MFO Members: Old_Skeet, 1/2016
    Regards,
    Ted
    https://www.mutualfundobserver.com/discuss/discussion/comment/73758/#Comment_73758
  • JoeD
    Well, they may have to dust off their capes if this trend continues. Such little mention of this "team", like some kind of secret org.
  • Old_JoeOld_Joe
    edited May 2019
    "The Plunge Protection Team's official mission is to advise the U.S. president "

    Yeah, good luck on that one. As if the person currently usurping and bastardizing the title of "president" would listen to anything other than Fox.
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