Goldman Sachs May Explain PPT’s Vanishing Act: Caroline Baum
Where are they? What’s keeping them? Stock markets across the globe are getting hammered, and there’s no sign of the Plunge Protection Team.
Sure, there were some sightings of the bond vigilantes in places like Greece over the past month. But a worldwide equity meltdown is a job for real men, for the PPT.
Otherwise known as the President’s Working Group on Financial Markets, the PPT was established after the 1987 stock- market crash to ensure the financial markets have adequate liquidity to function. Members include the U.S. Treasury secretary, the chairman of the Federal Reserve, the chairman of the Securities and Exchange Commission and the chairman of the Commodity Futures Trading Commission.
Somehow this group morphed into a government/private-sector cabal -- Goldman Sachs always figures prominently -- that secretly intervenes to prop up the stock market.
You know those gut-wrenching dives in the Standard and Poor’s 500 Index that are miraculously erased and turn into gains by the end of the day? The PPT.
So where are they when we need them?
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