Without delving into severe paranoia yet, did we just see the big footprint of the plunge protection team late in the afternoon trading in Wall Street today? Did they unleash the Cayman Islands “catch the falling knife” war-chest scheme to soak up most of the plunge? For the sake of silly discussion if PPT exists and if the printing presses were real in the stock markets, is this good or bad?
For the sake of silly discussion if PPT exists and if the printing presses were real in the stock markets, is this good or bad?
I guess it depends on how you define good and bad.
Markets are based largely on emotional inertia, so a judicious use of artificial liquidity can prevent a 1929-type scenario. Or at least postpone it a bit, I would think. Kind of like pumping the brakes a few times before crashing into a brick wall.
Something thats interesting to note, during the 1929 crash, the downward plunge was stopped by some big players coming in and buying some blue-chip type stock over the asking price. So there is a historical precedent for a workable PPT-type model.
For the sake of silly discussion if PPT exists and if the printing presses were real in the stock markets, is this good or bad?
I guess it depends on how you define good and bad.
Markets are based largely on emotional inertia, so a judicious use of artificial liquidity can prevent a 1929-type scenario. Or at least postpone it a bit, I would think. Kind of like pumping the brakes a few times before crashing into a brick wall.
Something thats interesting to note, during the 1929 crash, the downward plunge was stopped by some big players coming in and buying some blue-chip type stock over the asking price. So there is a historical precedent for a workable PPT-type model.
For the sake of silly discussion if PPT exists and if the printing presses were real in the stock markets, is this good or bad?
I guess it depends on how you define good and bad.
Markets are based largely on emotional inertia, so a judicious use of artificial liquidity can prevent a 1929-type scenario. Or at least postpone it a bit, I would think. Kind of like pumping the brakes a few times before crashing into a brick wall.
Something thats interesting to note, during the 1929 crash, the downward plunge was stopped by some big players coming in and buying some blue-chip type stock over the asking price. So there is a historical precedent for a workable PPT-type model.
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