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  • March 17, 2008 at 12:33 PM #12144
    XBoxBoy
    Participant

    So I keep seeing comments on various boards claiming that the Plunge Protection Team is actively trying to manipulate the markets. Now, according to Wikipedia, the PPT is indeed real, although officially named The Working Group on Financial Markets. But I wonder if any one around here has real knowledge about the following.

    1) Has the PPT team actually engaged in buying or selling in the markets in recent times? (Or ever)

    2) If the PPT does engage in buying or selling in the markets, are they required to report it? If so, when and where do they report it, and how quickly after acting do they have to report it.

    Any insight into this would be appreciated,

    XBoxBoy

    March 17, 2008 at 1:00 PM #171752
    Anonymous
    Guest

    The Fed’s recent activities are blatant examples of the PPT in action.

    March 17, 2008 at 1:00 PM #172189
    Anonymous
    Guest

    The Fed’s recent activities are blatant examples of the PPT in action.

    March 17, 2008 at 1:00 PM #172111
    Anonymous
    Guest

    The Fed’s recent activities are blatant examples of the PPT in action.

    March 17, 2008 at 1:00 PM #172085
    Anonymous
    Guest

    The Fed’s recent activities are blatant examples of the PPT in action.

    March 17, 2008 at 1:00 PM #172088
    Anonymous
    Guest

    The Fed’s recent activities are blatant examples of the PPT in action.

    March 17, 2008 at 1:14 PM #172116
    Daniel
    Participant

    The answers are 1)No, and 2)Not Applicable. There are many urban legends about the PPT, just like about 9/11, Kennedy, and moon landing conspiracy theories.

    What the WGFM actually does is precisely what we witnessed this week-end: arrange an emergency buyout of BSC, to prevent it from formally declaring bankruptcy and throwing the entire financial system into counterparty chaos. Do you know what happens if you have a brokerage account at BSC and BSC goes under? Your account gets frozen until the SIPC sorts things out. Not funny. Do you know what happens, if, in addition to that, you were trading on margin? Your collateral can be seized by BSC creditors. Even less funny.

    So the WGFM (which is basically another way of saying the Fed and the Treasury chiefs) arranged for JPM to take over BSC to prevent monumental chaos. That’s precisely what they were supposed to do. And, BTW, this is not really a BSC bailout, as BSC shareholders get nothing (OK, 2 bucks). What really happened last night was to arrange for an extraordinarily fast bankruptcy and liquidation of BSC, presented as a “merger”. All the government approvals were granted in just a few hours, JPM started guaranteeing BSC trades as of this morning, JPM management took on supervisory role as of this morning… That was not a bailout, that was orderly liquidation.

    March 17, 2008 at 1:14 PM #172194
    Daniel
    Participant

    The answers are 1)No, and 2)Not Applicable. There are many urban legends about the PPT, just like about 9/11, Kennedy, and moon landing conspiracy theories.

    What the WGFM actually does is precisely what we witnessed this week-end: arrange an emergency buyout of BSC, to prevent it from formally declaring bankruptcy and throwing the entire financial system into counterparty chaos. Do you know what happens if you have a brokerage account at BSC and BSC goes under? Your account gets frozen until the SIPC sorts things out. Not funny. Do you know what happens, if, in addition to that, you were trading on margin? Your collateral can be seized by BSC creditors. Even less funny.

    So the WGFM (which is basically another way of saying the Fed and the Treasury chiefs) arranged for JPM to take over BSC to prevent monumental chaos. That’s precisely what they were supposed to do. And, BTW, this is not really a BSC bailout, as BSC shareholders get nothing (OK, 2 bucks). What really happened last night was to arrange for an extraordinarily fast bankruptcy and liquidation of BSC, presented as a “merger”. All the government approvals were granted in just a few hours, JPM started guaranteeing BSC trades as of this morning, JPM management took on supervisory role as of this morning… That was not a bailout, that was orderly liquidation.

    March 17, 2008 at 1:14 PM #172095
    Daniel
    Participant

    The answers are 1)No, and 2)Not Applicable. There are many urban legends about the PPT, just like about 9/11, Kennedy, and moon landing conspiracy theories.

    What the WGFM actually does is precisely what we witnessed this week-end: arrange an emergency buyout of BSC, to prevent it from formally declaring bankruptcy and throwing the entire financial system into counterparty chaos. Do you know what happens if you have a brokerage account at BSC and BSC goes under? Your account gets frozen until the SIPC sorts things out. Not funny. Do you know what happens, if, in addition to that, you were trading on margin? Your collateral can be seized by BSC creditors. Even less funny.

    So the WGFM (which is basically another way of saying the Fed and the Treasury chiefs) arranged for JPM to take over BSC to prevent monumental chaos. That’s precisely what they were supposed to do. And, BTW, this is not really a BSC bailout, as BSC shareholders get nothing (OK, 2 bucks). What really happened last night was to arrange for an extraordinarily fast bankruptcy and liquidation of BSC, presented as a “merger”. All the government approvals were granted in just a few hours, JPM started guaranteeing BSC trades as of this morning, JPM management took on supervisory role as of this morning… That was not a bailout, that was orderly liquidation.

    March 17, 2008 at 1:14 PM #172090
    Daniel
    Participant

    The answers are 1)No, and 2)Not Applicable. There are many urban legends about the PPT, just like about 9/11, Kennedy, and moon landing conspiracy theories.

    What the WGFM actually does is precisely what we witnessed this week-end: arrange an emergency buyout of BSC, to prevent it from formally declaring bankruptcy and throwing the entire financial system into counterparty chaos. Do you know what happens if you have a brokerage account at BSC and BSC goes under? Your account gets frozen until the SIPC sorts things out. Not funny. Do you know what happens, if, in addition to that, you were trading on margin? Your collateral can be seized by BSC creditors. Even less funny.

    So the WGFM (which is basically another way of saying the Fed and the Treasury chiefs) arranged for JPM to take over BSC to prevent monumental chaos. That’s precisely what they were supposed to do. And, BTW, this is not really a BSC bailout, as BSC shareholders get nothing (OK, 2 bucks). What really happened last night was to arrange for an extraordinarily fast bankruptcy and liquidation of BSC, presented as a “merger”. All the government approvals were granted in just a few hours, JPM started guaranteeing BSC trades as of this morning, JPM management took on supervisory role as of this morning… That was not a bailout, that was orderly liquidation.

    March 17, 2008 at 1:14 PM #171757
    Daniel
    Participant

    The answers are 1)No, and 2)Not Applicable. There are many urban legends about the PPT, just like about 9/11, Kennedy, and moon landing conspiracy theories.

    What the WGFM actually does is precisely what we witnessed this week-end: arrange an emergency buyout of BSC, to prevent it from formally declaring bankruptcy and throwing the entire financial system into counterparty chaos. Do you know what happens if you have a brokerage account at BSC and BSC goes under? Your account gets frozen until the SIPC sorts things out. Not funny. Do you know what happens, if, in addition to that, you were trading on margin? Your collateral can be seized by BSC creditors. Even less funny.

    So the WGFM (which is basically another way of saying the Fed and the Treasury chiefs) arranged for JPM to take over BSC to prevent monumental chaos. That’s precisely what they were supposed to do. And, BTW, this is not really a BSC bailout, as BSC shareholders get nothing (OK, 2 bucks). What really happened last night was to arrange for an extraordinarily fast bankruptcy and liquidation of BSC, presented as a “merger”. All the government approvals were granted in just a few hours, JPM started guaranteeing BSC trades as of this morning, JPM management took on supervisory role as of this morning… That was not a bailout, that was orderly liquidation.

    March 17, 2008 at 1:17 PM #172100
    Daniel
    Participant

    “The Fed’s recent activities are blatant examples of the PPT in action.”

    Absolutely. Whether we agree with those actions or not, that’s another story. But this IS it. What we just saw. Not buying stocks to support the market, this idea is plain silly.

    March 17, 2008 at 1:17 PM #172106
    Daniel
    Participant

    “The Fed’s recent activities are blatant examples of the PPT in action.”

    Absolutely. Whether we agree with those actions or not, that’s another story. But this IS it. What we just saw. Not buying stocks to support the market, this idea is plain silly.

    March 17, 2008 at 1:17 PM #172126
    Daniel
    Participant

    “The Fed’s recent activities are blatant examples of the PPT in action.”

    Absolutely. Whether we agree with those actions or not, that’s another story. But this IS it. What we just saw. Not buying stocks to support the market, this idea is plain silly.

    March 17, 2008 at 1:17 PM #172205
    Daniel
    Participant

    “The Fed’s recent activities are blatant examples of the PPT in action.”

    Absolutely. Whether we agree with those actions or not, that’s another story. But this IS it. What we just saw. Not buying stocks to support the market, this idea is plain silly.

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