The ‘Plunge Protection Team’ does exist. Big whoop.
More important…What’s really wrong with that? You can’t blame countries for greed. It just is a cost of wealth.
The real sad truths of the PPT are the following:
There are insiders that get filthy rich off the news and it’s impossible to stop. I guess you could argue about the greater good. I really could care less about that argument. It just is what it is. I try not to think about it.
The second thing wrong about it is our inability to coordinate cooperation like this over weapons, troop movements…basically peace. It’s easy to get all the groups together over money though:
“Since the coordinated actions taken in December 2007, the G-10 central banks have continued to work together closely and to consult regularly on liquidity pressures in funding markets. Pressures in some of these markets have recently increased again. We all continue to work together and will take appropriate steps to address those liquidity pressures. To that end, today the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, and the Swiss National Bank are announcing specific measures…
Man what I would give to be a fly on the wall in recent phone conversations amongst these financial yutz’s. Today is the big reason why short-sellers do not litter the Forbes 500 list. Days like today are the main reason I don’t pull the trigger on momentum shorts like Agriculture Stocks which I opined missing and the main reason I took profits in my financial short position (SKF) into the abyss yesterday (twittered). If you trade the short side it is just hard not to have one foot out the door at all times.
Only three more rate cuts and 40 more points and my kids will be even on Google.
Disclosure – Long Google and Apple