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Archive for the ‘Financial Markets’ Category

PPTThe PPT was hard at work today. “So what,” you may say. Or, “What on earth are you talking about?”

As for “what are you talking about,” I mean by the PPT The President’s Working Group on Financial Markets, better known as the Plunge Protection Team (PPT).. Regarding the “so what,” the PPT is the government’s market rigging machine. They’re so good at it that according to one former PPT insider, “there is no price discovery anymore by the market…governments impose prices on the market.”

Today’s action in the US stock market was a perfect example of this. As you can see from the chart below, at one point in the day the Dow Jones Industrial Average (DJIA) was down about 140 points, a significant drop. And this on heels of several rounds of bad US economic news, the ongoing collapse of one of Canada’s largest mortgage lenders, major problems with China’s credit market, the weekends big election in France which has the potential to break up the European Union, and, oh yeah, the threat of war breaking out in North Korea, Syria, Iran, the South China Sea and Eastern Europe.


But a funny thing happened on the way to a market crash. Out of nowhere, someone started panic buying stocks. Up, up, up went the market until the DJIA closed the day just 6 points down from where it began.

There’s an old saying among stock traders, “Don’t try to catch a falling knife.” That’s a way of saying, don’t by a stock while it’s on the way down. Just let it drop until it finds a price floor.

The market was tanking today, and had very good reason to tank, but the powers that be wouldn’t let the Dow – or as Andy Hoffman likes to call it, the Dow Jones Propaganda Average – fall.

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