Sunday, March 21, 2010

The Plunge Protection Team at work again

I've blogged about the President's Working Group on Financial Marks a few times in the past. It was created by President Reagan with Executive Order 12631 as a means to short-circuit a financial market meltdown, in response to the 1987 stock market crash.

The President's Working Group was dubbed the Plunge Protection Team (PPT) by Washington Post writer Brett Fromson in this 1997 article.

This recent article concludes the PPT has been working overtime to prop up the equities market since March of 2009.

The significance isn't that the PPT exists--it's decreed in the Executive Order, after all. The fact that it's an article that has surfaced on Yahoo Finance means the PPT is no longer a figment of the imagination of conspiracy theorists, but is now being exposed to mainstream financial pundits. I will leave it up to readers to form their own judgments on the implications on financial market rallies and the overall economy. Even the phrase "jobless economic recovery" is an oxymoron.

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