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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (23093)	4/5/2000 8:31:00 AM
From: Terry Whitman	Read Replies (1) \| Respond to of 42523

This guy is a major PPT watcher. He calls it the CPT (Crash Protection Team)- > Where Are We Now? (04/04/2000 PM): Today should have been a learning day for individual investors. As it turned out, they received a lesson alright -- but not that overexuberance leads to the risk of loss, rather that overexuberance is rewarded and protected. In the past two trading days, we have been exposed to two (2) separate examples of what appears to be deliberate intervention by the Crash Protection Team (CPT). >Monday (4/3/00), they were ready right from the opening tick of trading at NYSE because of the electronic off-session trading where Microsoft (MSFT) was being sold agressively following the DOJ antitrust news. As a DJIA stock, Microsoft would have single-handedly dropped the DJIA by -90 points. The intervention campaign was too successful -- Tuesday (4/4/00) saw many of the rallied stocks from Monday come under early selling pressure. But that did not deter the CPT from continuing to apply the pressure. Once the Nasdaq started to slide into an accelerated fall, the DJIA quickly followed along. At one point, the DJIA and Nasdaq were down over 500 points each -- clearly, these were record down point levels. The CPT may have stepped in once again. This time they were successful in nearly wiping out the entire loss. Individual investors that only looked at the closing statistics were probably unaware of the mid-day carnage. Had the market closed near the lows of the day, Wednesday would have been an automatic disaster -- brokers would have been forced into making margin calls which would have been very unpopular with investors. In addition, investor redemptions in Mutual Funds would have likely overwhelmed the on-hand cash levels of most funds. But as it turns out, brokers did not have to make very many margin calls, and Mutual Funds did not get swamped with redemption requests. The market was saved from disaster once again. > geocities.com

To: Ilaine who wrote (23093)	4/5/2000 9:56:00 AM
From: Mike M2	Respond to of 42523

CB, i'm flakey-g- but I do believe the PPT is alive and well - yesterdays recovery was their work IMO. Federal Reserve Gov. Robert Heller suggested the notion of interention via the futures market in the op. ed. section of WSJ in Oct 11? 1989. The 87 crash recovery was an orchestrated recovery. As you mention the moral hazard issue is the big problem with such action . The longer the bubble is perpetuated the greater the imblances become ensuring a prolonged and painful adjustment period ( bust). mike ho ho ho