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Posted by on Jul 8, 2010 in In The News, Markets, TG Roundup

Is “Plunge Protection Team” a Myth?

When Congressman Alan Grayson asked this question, Bernanke said in a written statement, “No!”

But a lot of market participants believe that the government does in fact intervene in markets in many overt and covert ways, one of which is to buy S&P futures. CNBS guys debunk this. [This via Zero Hedge]

A highly amusing exchange occurred earlier on CNBC when guest Damon Vickers of Nine Points Capital had an unexpected moment of truthiness and turned some heads when he said that “unless the plunge protection team comes in over the next couple of days, the markets are looking very dicey here.” When a disgusted Joe Kernan asks if Vickers was making a joke about the PPT, the response is “absolutely not – it’s common knowledge that the government steps in and does things to step on the gas and buy stock here and there.” To which Byron Wien has a strong retort: “I don’t believe it.” All that and much more in the clip below. In the meantime, the market is sure having a field day with stocks as once again bad news are discarded and the smallest glimmer of positivity serves as a springboard for yet another ramping short covering spree.

2 Comments

  1. P.S. to my previous comments did you observe two things in that video.

    1. This is on CNBC Europe and not in USA. General public in Europe is more familiar with gold than in USA.

    2. The title of the video “Potential Gold Bubble Forming?”, now if you watch the video none of the people in it said that. Why are the editors alluding that gold is in a bubble?

  2. Mohan garu

    Precious Metals market being manipulated is well documented and known fact among the people in the know. It is only coming out of the closet now, for e.g. see the link below where of all media outlets CNBC! is showing it.

    http://www.cnbc.com/id/15840232/?video=1538347357&play=1

    Phenomenal work, actually I would say “Braveheart” of these guys who are confronting the “Goliath”

    http://www.gata.org/