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To: heraclitus who wrote (84483)	2/13/2000 9:57:00 PM
From: jttmab	Respond to of 86076

GFY long or short? Pretty obvious isn't it?....you'd have to be long. jttmab

To: heraclitus who wrote (84483)	2/14/2000 7:52:00 AM
From: Terry Whitman	Respond to of 86076

Crash Protection Team Update- Where Are We Now? (02/13/2000 PM) Commentary: The Summers' Games I have written about the CPT (Crash Protection Team) often in the past, but it has been awhile. The CPT is officially called the Working Group on Financial Markets. Normally, I would not be bringing it up again unless I thought we were in a situation where I thought the CPT would intervene in the markets again. Well, I do not anticipate their interference anytime too soon, but a recent New York Post article "How Summers Rocked the Market by John Crudele, brought the discussion into the forefront again. While Mr. Crudele's article dealt more specifically with Lawrence Summers' failed attempt to single-handedly disregard the Federal Reserve's rate increase last week, by mucking around with Bond rates. Obviously, this was market manipulation. But that's not what I wanted to discuss... rather, it's the fact that Lawrence Summers was successful in distancing himself away from the very participants that he and the rest of the CPT will need to intervene into the Stock Markets when the moment arrives. When Robert Rubin was in charge of the Treasury, he ran a tightly integrated CPT family. When the time arrived for the CPT to spring into action, market wheels started to turn simultaneously, a concert of individual yet effective tasks of manipulation of the markets. For example, in October, 1997, the stock market had suffered a disasterous day with the DJIA down over 500 points and the market shut down before the end of the session. The following morning, the DJIA was falling again. Precisely around 10:20 am several events took place... the S&P futures contract jumped in a very agressive rally that moved over 30 points in a matter of a few minutes. Back then, the S&P was the "big" contract which means each contract on the bid-side gained over $15,000 in one blast that steamrolled through all of the stops. For just an instant, the DJIA and S&P 500 Cash indexes had not started moving... but that instant was stampeded over by stunned, but anxious arbitrageurs that wanted to capture as much of that "gift" that was presented to them... in other words, the "arbs" bought stocks and sold futures which automatically powered the major averages higher. If that was not enough, more than a dozen household-name companies announced massive stock-buyback programs -- IBM was a notable participant since they announced a $10 billion buyback even though they were already in progress with an existing $4 billion buyback program. Ok, the reason I bring up this example is simply that "someone" had to do the dirtywork on the floor of the futures and stock exchanges to make this come together. Allegedly, this was Goldman-Sachs. Robert Rubin was a former Chairman for Goldman-Sachs prior to accepting the position for Secretary of the U.S. Treasury. Lawrence Summers never really had the same alliance with Goldman-Sachs like Rubin had. Now that Summers has alienated himself away from Goldman and the other big Wall Street firms that helped Rubin before him. Summers' fiasco with manipulating bond rates cost Goldman-Sachs and other major brokerages huge sums of money. As Mr. Crudele had quoted, "the losses are in the billions". That's not a very effective way to win friends and influence people! So now you can see the real crux of the biscuit... when the time comes (and there will certainly be a "next time") when the CPT needs to intervene to halt a major stock market collapse, the "henchmen" needed to execute the dirtywork may not be there to assist in the same way they did under Rubin's control. Under Rubin, these guys were more than willing to help out... after all, Rubin had presented them with the most perfect form of "insider trading" that could be ever devised. Who wouldn't help out knowing that they would significantly profit from a staged manipulation effort. And, authorized by the CPT (which include: NYSE, AMEX, NASDAQ, SEC, CFTC, Federal Reserve, Treasury Department, and the President) -- no one was going to get fingered for participating. The "next time" will likely be a disaster for all "insiders" if Summers cannot patch things up in time to re-build Rubin's CPT machine. courtesy of Steven Williams at Cycle Pro geocities.com PPT background- washingtonpost.com