Editor's Note: Someone had to ask the question, and this article in the Huffington Post asks and discusses this mind boggling and frightening issue.
Conspiracy? Is Goldman Sachs Running the Plunge Protection Team?
by Eben Esterhuizen in The Huffington Post
Is the current stock market rebound based on fundamentals, or are more sinister forces at work? Tyler Durden, one of the best financial bloggers around, have found some circumstantial evidence that suggests the mysterious Plunge Protection Team (PPT) has recently been boosting the stock market. And some might say Goldman Sachs is running the show . . .
. . .
"A very interesting data point, also provided by the NYSE, implicates none other than administration darling Goldman Sachs in yet another potentially troubling development," writes Durden. "Key to note here is that Goldman's program trading principal to agency+customer facilitation ratio is a staggering 5x, which is multiples higher than both the second most active program trader and the average ratio of the NYSE, both at or below 1x."
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The TARP money which GS received and which they will at some point return (they say they want to return it quickly) might have been used throughout March to ramp up the market.
ReplyDelete$10bn,say, in programmed trades would have been a lot of fire-power. Simply my opinion.
The market falls from 14,000 to 6500
ReplyDeletecan't say that the PPT did a stellar job , though others may believe so
The fdic has given Goldman sachs 22 billion of backed loans. Since when can a bank buy stock like they are without breaking fdic leverage rules?
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