For those of you out there and want to understand why the stock market is up. Who knows about the PLUNGE PROTECTION TEAM ??? Anybody out there know the member list or agencies of the US Govt that assist this market??? We need to understand this group so we can have at least fair warning of it's collapse.

-- JT (dowjones@bcmoney.com), January 23, 1999

Answers

JT,

I know this isn't what you meant by "plunge protection team" but here's a quote from an article about why the stock market is up...

"Wall St.'s Risky Bet That Fed Will Come To Rescue"

http://nt.excite.com/news/r/990123/15/business-stocks

In the rush to build a fire wall around the American economy and rebuild confidence in financial markets, the Fed reduced interest rates three times between September and November by a total of three- quarters of a percentage point.

But the rate chopping lit up the stock market, and the Fed is now worried that it may have created a speculative bubble that is waiting to burst.

"Last fall the concern was about protecting the U.S. financial system," said Meehan. "Now, Greenspan is very chagrined at the unavoidable consequences of the three rate reductions, which caused a raging move (up) in the stock market."

-- Kevin (mixesmusic@worldnet.att.net), January 23, 1999.

JT,

I did just find this. It's an article from the Washington Post dated February 23, 1997 called "Plunge Protection Team"...

http://www.washingtonpost.com/wp-srv/business/daily/feb/26/plunge.htm

-- Kevin (mixesmusic@worldnet.att.net), January 23, 1999.

JT: If you really want to understand the PPT, start lurking or posting at the kitco forum (www.kitcomm.com) - Good Luck - Rob

-- Rob Michaels (sonofdust@net.com), January 23, 1999.

Well the PPT got a new teamate in the form of Slick Willy. Wants to put Social Security in to the market. At least Greenspan had the sense to shoot that one down. If the past six years are any indication Slick may just get his way.

-- Bill (y2khippo@yahoo.com), January 23, 1999.

If this fell in to play and the government purchased enough stock in such companies, is it feasible that it could have the power/equity to affect decisions, etc.?

-- Tim (pixmo@davenport.edu), January 23, 1999.