Redbrow
01-24-08, 09:37 AM
The PPT (Plunge Protection Team ) was a theory of many traders in the early 90s, until Clinton people admitted it existed. The Bush team has not hidden the fact that the PPT is used and will be used. This topic has even appeared in the dumbed down sheeple news of the mega media for some years. This gold dealer has a nice chart showing the PPT in action,
http://news.goldseek.com/RickAckerman/1201071660.php
but I have been watching this kind of PPT action since about 1997 when the net began to get some great market tools. I knew a guy who was really something of an expert at market waves and charting and he ran a great site too. But the wacky PPT threw all his calculations to the winds and he like many other market charters began to complain that none of the markets were operating correctly. I tried to tell him about the PPT, back then, but he would not listen or believe it. Finally he got so worked up - after failing to predict anything for several years, that he just quit. But others quit too. So since at least Clinton's last years in office I realized that the market - especially the DJIA was little more than a Potemkin bill board - a propaganda tool for the masses, and you will see many networks and media sources saying things like: "All eyes are on Wall Street!", even just last Monday. The news should read: "Please: all eyes on Wall Street!"
Because the REAL MONEY is not made in stock markets. Not at least since the end of the 90s. Derivatives were invented to insure bonds and stock markets way back before the 90s, but in this last decade that market became the true power house all in its own right. How so you say? Well last December - a month ago or so - it was reported that the value of all the world's major stock markets added together had a total worth of 66 trillion bucks. Sounds big huh? Yep, so "Please, all eyes on Wall Street!" But, at the same time in December it was reported that the Derivatives market had reached a value of $685 trillion dollars. More than 10 times the total wealth of the world's largest stock markets put together.
Now - realize this, back in June of 2007 - before the financial banking fiasco - the Derivatives market was at $415 trillion. By mid July it was at $450 trillion, and sometime around October it was at $517 trillion, but by mid December it was reported at $685 trillion. Now some of this was due to the decline of the dollar - but not much - the dollar has not fallen that much as to explain the growth of derivatives. That means between the first part of June 2007 and December 2007 (6 months) this market grew by $270 trillion (or put another way - it grew 4 times the total book value of all the largest world's stock markets - not their profits, but their total complete value) in just half a year! The major-sheeple media outlets did not tell their viewers, "All eyes on the derivatives market!" But what major financial reporters in the big boy's news have said, is that derivatives are like money printing presses for the big banks. And in fact many of the financial banking instruments that went belly up last year were derivatives. And while this fiasco was growing last summer, while I watched crowds of the $10,000 Suits, running around in a panic - the major news outlets for the Sheeple didn't have much to say about it, until it spilled onto Wall Street, and they asked each other during their news cast, "What's up with stocks?" as if their editors knew nothing about the fact that the derivatives market is many orders larger than stock markets and could with its little finger raise or drop it thousands of points.
And the news for those in the know last mid December 2007 was that there came a week when $450 trillion worth of the derivatives market simply froze up. Something it had never done in its history, sort of like a man's heart just stopping to pump. And big bankers in Europe were quoted as saying that if this was not fixed soon a storm would engulf the world soon in 2008. Why? Well here is how it goes, as was reported back in the Fall of 2007 $450 trillion was more than about 12 to 14 times the world's total yearly gross output of income and profits. But you know the world could not really afford to just not eat or drive or keep warm for 12 to 14 years, now could it. So if even 50% of this market was to go down it would take the world more than 14 years to pay back - it would take decades. And how big was this block of none trading and frozen market of derivatives? It was almost 7 times the total book value of the total worth of all the world's largest stock markets all put together! (But remember you little fuzzy sheep, "All eyes on Wall Street! Keep 'em there where the Bush PPT can manipulate the market with unending printed paper.")
After about 10 days of total freeze of $450 trillion worth of this derivatives market, Helicopter Bob Bernanke, the Fed master of money, got together with the masters of the ECB and banks all over Europe to try to add a tiny bit of oil to this huge frozen monster market. Now in the LITTLE TINY PEOPLE NEWS, (that's for us $800 Suits) this get together of the central bank honchos was billed as something else - and in the US on NBC the talking head invited a paid expert on TV and asked him, "Why would Europe do all this for the American Home owner?" And the expert (wincing and trying not to burst out laughing) went along with this bit of Potemkin banter. Yes, why would the European banks inject billions to bail out the US home owner? Of course even the financial news you get on Yahoo wasn't that stupid to lie like that. Most internet news and financial papers stated it was about helping the LIBOR - the index European banks use when loaning to one another. But alas for those who keep up with things like the iTraxx Crossover Index knew that what really got Ben reving up his chopper that weak and got all the European's biggest bankers in a pile, was not the LIBOR at all, it was the fact that $450 trillion of derivatives ceased to move or trade.
Now compare the massive amounts injected by Ben Bernanke and his European buddies.....$40 billion here, $35 billion there, and up to $80 billion there, all while dropping rates in the USA as if there was a recession, which of course per the Sheeple news we did not have. Now all this funny money thrown out of Ben's chopper and the European banks has almost totaled, but not quite, $1 trillion dollars! WoWWEE. And during that same time the Derivatives market added $270 trillion! Hmmm, almost 1 as compared to 270??? Why didn't your evening stupid TV news mention this to you??? You see how truly powerless Ben and the ECB are. All there money injections amount to is like tiny drops of oil going into this huge engine to help make its parts move a bit smoother.
As some may know when this fiasco began near the end of last June, with Bear Stearns and its CDO problem, many financial experts were not even sure how CDO worked. Asian and European investors seemed not to know since they bought so many. But the word was out: these CDOs had never been traded in an open market. Banks assigned to them the value they THOUGHT they should have instead of allowing a real market determine their worth. Then the banks used these bogus instruments to use as their foundation of worth. Having done this, the banks went on to laon out more billions based on the CDOs. So when Bear Stearns was forced to trade these paper assets in the real market, when two of its funds went belly up, it was with a held breath that people watched to see what would happen. And the news came back - the CDOs traded first at 85% of their stated value. Then quickly they fell to 15%, and then something rarely seen in markets - the CDOs were dangling out over a black hole! NO OFFERS WERE COMING IN! Zero value! Bear Stearns quickly took the remaining CDOs (the remaining 66%) off the market - end of sale. Friday was upon us - and all the world bankers were trying to spin this bad news away to the real financial news outlets (as for the sheeple news....not a word. All eyes on Wall Street!)
but I knew that the ship of the world's banking system had just had a little accidentee, where huge and major engine parts came flying out of the hull of the ship!
Then came Monday next...and something strange was happening. All the real financial reporters were reporting that all the big bankers keeping their lips zipped and were refusing to comment a single word. I thought....not even spin? And then I knew that the Powers That Be had just gotten kicked in their collective groin. It was a big OOPS moment.
It was like running up to the officers on the ship's bridge and asking why huge parts of the ship's engine had just burst out and landed in the sea. And the Officers just stand there with their lips shut tight.
And then through JULY the slide began (though sheeple news and even major financial reporters try to say it was August. But it was in July that I saw the $10,000 Suit crowd running around trying to sell everything they could before their funds went belly up. And by August even big bankers were using the "D" word (Depression Baby!) Why? Because CDOs and their ilk were what all the leading banks, especially in the USA, used for their banking worth foundation! And the Bear Stearns fiasco proved that in truth these instruments were as good as a plugged nickel. Some spin experts would later say 200 billion was at risk. Others would admit to nearly a trillion, but those who knew, knew that if all the banks had to sell quickly the bad debt was in the many trillions. Just kiss your fricken job good bye, you house good bye, your wife good bye, your life good bye.
And while all this was UNWINDING in July, Wall Street (that TINY LITTLE POTEMKIN BILL BOARDS FOR SHEEPLE) kept going up and up. And the talking heads on TV said not a word about the $10,000 Suits who were running around in a panic. It was about that time I finally understood what Wall Street was - a tiny little side show used to sooth or worry sheeple. And I have been charting and watching stocks since I was in High School in 1971. So for me it was a hard thing to realize - old ideas are hard to give up.
In the 30s the depression had begun with small businesses and people, then Wall Street in 1929, and last it hit the banks. But this time....it was all reverse, for the Potemkin markets were still standing while the Financial Banking empires were shaking and falling. And what are banks to the world economy? Well yank out your whole blood system from your body and you have some an idea.
Thus in mid to late December as the $450 trillion segment of the $685 trillion derivatives market froze up, I realized that day that not only had the engine room gone Kah-bluuee! But now the officers were admitting that this ship had a nuclear reactor and it was heating up toward a major detonation. But in the major media...the LITTLE TINY PEOPLE NEWS...not a word.
Did we dodge the bullet.....perhaps...for a very short time. Cause when the CDOs went belly up they took down a large host of other paper instruments by September of 2007, such as ABCPs, SIVs, and many others. Not only that but as this unwinding keeps going and IT IS (for in this kind of markets, pay backs are a b) banks and investors found that to pay back their bad debts in their funds, they had to sell even GOOD ASSETS. When the bill comes they had to sell what they had or go under. Of course by late July this effect caused even Wall Street to begin to fall and of course this upset some sheeple. SO the TV news trotted out excuses, but it was not until Fall that they began to outline to their fuzzy watchers just what might be up....not really. The sheep are always left in the dark.
And banks began to refuse to loan to one another, because 1. they needed the cash for themselves for their own debts, and 2. they no longer trusted one another since they knew all banks traded the same worthless crap CDOs and so forth.
A funny effect of this was seen in early January in the USA. Even though Ben Bernanke had lowered interest rates quite a bit, banks in the US continued to offer their CD customers high rates of interest for money loaned to the bank. How was this possible? Usually when rates go down, CDs are offered at lower earnings rates. But what happened was this: the US banks are desperate for cash! They need it really badly because of their own bad debt. And so they were willing to offer higher interest rates on CDs to customers willing to loan to the bank (after all the banks are getting much from each other these days).
And then the world wide stock melt down...and Ben's unheard of before large drop of interest rates last Monday. But if you think the fun is over....hold on. More and more paper instruments are going down and the unwinding of bad bank debt is still going on. The tiny little amounts of cash that the ECB and Ben inject are as nothing to the real market - the derivatives market. Charting this market shows that a huge bubble of insurance debt (this market was created as a form of insurance) was inflating from June 2007 until December 2007. A huge spike was created. The frozen part of this market was all those derivatives created or based on bets made that were connected to the bad housing debt in the USA. The newly created bubble peak derivatives over that were those created to patch up and insure against the frozen part. This mass was freezing up steadily from August through November. There are still no signs that things are changing the other way.
Now those of you who know how this international system works may know that when Tits-up time comes the big bankers like to have some historical bit of trivia to blame everything on...like Arabs, Arabs and the oil embargo caused the 73 stock slump, like Iran and their hostages caused the 80s recession, like Saddam caused the early 90s recession, like 9-11 caused the 2001 down turn. (truth was - I got up early that day on 9-11 to watch the stock market melt down - all real market watchers knew that on 9-11 the market was supposed to tank, per wave charts and so forth. Of course a little pop, pop, pop allowed the markets to shut down for 10 days just in the nick of time.)
So what will be the plausible historical event to blame our upcoming market collapse on?.....hmmmmm.....I wonder....could it be something in the Persian Gulf? :doh:
http://news.goldseek.com/RickAckerman/1201071660.php
but I have been watching this kind of PPT action since about 1997 when the net began to get some great market tools. I knew a guy who was really something of an expert at market waves and charting and he ran a great site too. But the wacky PPT threw all his calculations to the winds and he like many other market charters began to complain that none of the markets were operating correctly. I tried to tell him about the PPT, back then, but he would not listen or believe it. Finally he got so worked up - after failing to predict anything for several years, that he just quit. But others quit too. So since at least Clinton's last years in office I realized that the market - especially the DJIA was little more than a Potemkin bill board - a propaganda tool for the masses, and you will see many networks and media sources saying things like: "All eyes are on Wall Street!", even just last Monday. The news should read: "Please: all eyes on Wall Street!"
Because the REAL MONEY is not made in stock markets. Not at least since the end of the 90s. Derivatives were invented to insure bonds and stock markets way back before the 90s, but in this last decade that market became the true power house all in its own right. How so you say? Well last December - a month ago or so - it was reported that the value of all the world's major stock markets added together had a total worth of 66 trillion bucks. Sounds big huh? Yep, so "Please, all eyes on Wall Street!" But, at the same time in December it was reported that the Derivatives market had reached a value of $685 trillion dollars. More than 10 times the total wealth of the world's largest stock markets put together.
Now - realize this, back in June of 2007 - before the financial banking fiasco - the Derivatives market was at $415 trillion. By mid July it was at $450 trillion, and sometime around October it was at $517 trillion, but by mid December it was reported at $685 trillion. Now some of this was due to the decline of the dollar - but not much - the dollar has not fallen that much as to explain the growth of derivatives. That means between the first part of June 2007 and December 2007 (6 months) this market grew by $270 trillion (or put another way - it grew 4 times the total book value of all the largest world's stock markets - not their profits, but their total complete value) in just half a year! The major-sheeple media outlets did not tell their viewers, "All eyes on the derivatives market!" But what major financial reporters in the big boy's news have said, is that derivatives are like money printing presses for the big banks. And in fact many of the financial banking instruments that went belly up last year were derivatives. And while this fiasco was growing last summer, while I watched crowds of the $10,000 Suits, running around in a panic - the major news outlets for the Sheeple didn't have much to say about it, until it spilled onto Wall Street, and they asked each other during their news cast, "What's up with stocks?" as if their editors knew nothing about the fact that the derivatives market is many orders larger than stock markets and could with its little finger raise or drop it thousands of points.
And the news for those in the know last mid December 2007 was that there came a week when $450 trillion worth of the derivatives market simply froze up. Something it had never done in its history, sort of like a man's heart just stopping to pump. And big bankers in Europe were quoted as saying that if this was not fixed soon a storm would engulf the world soon in 2008. Why? Well here is how it goes, as was reported back in the Fall of 2007 $450 trillion was more than about 12 to 14 times the world's total yearly gross output of income and profits. But you know the world could not really afford to just not eat or drive or keep warm for 12 to 14 years, now could it. So if even 50% of this market was to go down it would take the world more than 14 years to pay back - it would take decades. And how big was this block of none trading and frozen market of derivatives? It was almost 7 times the total book value of the total worth of all the world's largest stock markets all put together! (But remember you little fuzzy sheep, "All eyes on Wall Street! Keep 'em there where the Bush PPT can manipulate the market with unending printed paper.")
After about 10 days of total freeze of $450 trillion worth of this derivatives market, Helicopter Bob Bernanke, the Fed master of money, got together with the masters of the ECB and banks all over Europe to try to add a tiny bit of oil to this huge frozen monster market. Now in the LITTLE TINY PEOPLE NEWS, (that's for us $800 Suits) this get together of the central bank honchos was billed as something else - and in the US on NBC the talking head invited a paid expert on TV and asked him, "Why would Europe do all this for the American Home owner?" And the expert (wincing and trying not to burst out laughing) went along with this bit of Potemkin banter. Yes, why would the European banks inject billions to bail out the US home owner? Of course even the financial news you get on Yahoo wasn't that stupid to lie like that. Most internet news and financial papers stated it was about helping the LIBOR - the index European banks use when loaning to one another. But alas for those who keep up with things like the iTraxx Crossover Index knew that what really got Ben reving up his chopper that weak and got all the European's biggest bankers in a pile, was not the LIBOR at all, it was the fact that $450 trillion of derivatives ceased to move or trade.
Now compare the massive amounts injected by Ben Bernanke and his European buddies.....$40 billion here, $35 billion there, and up to $80 billion there, all while dropping rates in the USA as if there was a recession, which of course per the Sheeple news we did not have. Now all this funny money thrown out of Ben's chopper and the European banks has almost totaled, but not quite, $1 trillion dollars! WoWWEE. And during that same time the Derivatives market added $270 trillion! Hmmm, almost 1 as compared to 270??? Why didn't your evening stupid TV news mention this to you??? You see how truly powerless Ben and the ECB are. All there money injections amount to is like tiny drops of oil going into this huge engine to help make its parts move a bit smoother.
As some may know when this fiasco began near the end of last June, with Bear Stearns and its CDO problem, many financial experts were not even sure how CDO worked. Asian and European investors seemed not to know since they bought so many. But the word was out: these CDOs had never been traded in an open market. Banks assigned to them the value they THOUGHT they should have instead of allowing a real market determine their worth. Then the banks used these bogus instruments to use as their foundation of worth. Having done this, the banks went on to laon out more billions based on the CDOs. So when Bear Stearns was forced to trade these paper assets in the real market, when two of its funds went belly up, it was with a held breath that people watched to see what would happen. And the news came back - the CDOs traded first at 85% of their stated value. Then quickly they fell to 15%, and then something rarely seen in markets - the CDOs were dangling out over a black hole! NO OFFERS WERE COMING IN! Zero value! Bear Stearns quickly took the remaining CDOs (the remaining 66%) off the market - end of sale. Friday was upon us - and all the world bankers were trying to spin this bad news away to the real financial news outlets (as for the sheeple news....not a word. All eyes on Wall Street!)
but I knew that the ship of the world's banking system had just had a little accidentee, where huge and major engine parts came flying out of the hull of the ship!
Then came Monday next...and something strange was happening. All the real financial reporters were reporting that all the big bankers keeping their lips zipped and were refusing to comment a single word. I thought....not even spin? And then I knew that the Powers That Be had just gotten kicked in their collective groin. It was a big OOPS moment.
It was like running up to the officers on the ship's bridge and asking why huge parts of the ship's engine had just burst out and landed in the sea. And the Officers just stand there with their lips shut tight.
And then through JULY the slide began (though sheeple news and even major financial reporters try to say it was August. But it was in July that I saw the $10,000 Suit crowd running around trying to sell everything they could before their funds went belly up. And by August even big bankers were using the "D" word (Depression Baby!) Why? Because CDOs and their ilk were what all the leading banks, especially in the USA, used for their banking worth foundation! And the Bear Stearns fiasco proved that in truth these instruments were as good as a plugged nickel. Some spin experts would later say 200 billion was at risk. Others would admit to nearly a trillion, but those who knew, knew that if all the banks had to sell quickly the bad debt was in the many trillions. Just kiss your fricken job good bye, you house good bye, your wife good bye, your life good bye.
And while all this was UNWINDING in July, Wall Street (that TINY LITTLE POTEMKIN BILL BOARDS FOR SHEEPLE) kept going up and up. And the talking heads on TV said not a word about the $10,000 Suits who were running around in a panic. It was about that time I finally understood what Wall Street was - a tiny little side show used to sooth or worry sheeple. And I have been charting and watching stocks since I was in High School in 1971. So for me it was a hard thing to realize - old ideas are hard to give up.
In the 30s the depression had begun with small businesses and people, then Wall Street in 1929, and last it hit the banks. But this time....it was all reverse, for the Potemkin markets were still standing while the Financial Banking empires were shaking and falling. And what are banks to the world economy? Well yank out your whole blood system from your body and you have some an idea.
Thus in mid to late December as the $450 trillion segment of the $685 trillion derivatives market froze up, I realized that day that not only had the engine room gone Kah-bluuee! But now the officers were admitting that this ship had a nuclear reactor and it was heating up toward a major detonation. But in the major media...the LITTLE TINY PEOPLE NEWS...not a word.
Did we dodge the bullet.....perhaps...for a very short time. Cause when the CDOs went belly up they took down a large host of other paper instruments by September of 2007, such as ABCPs, SIVs, and many others. Not only that but as this unwinding keeps going and IT IS (for in this kind of markets, pay backs are a b) banks and investors found that to pay back their bad debts in their funds, they had to sell even GOOD ASSETS. When the bill comes they had to sell what they had or go under. Of course by late July this effect caused even Wall Street to begin to fall and of course this upset some sheeple. SO the TV news trotted out excuses, but it was not until Fall that they began to outline to their fuzzy watchers just what might be up....not really. The sheep are always left in the dark.
And banks began to refuse to loan to one another, because 1. they needed the cash for themselves for their own debts, and 2. they no longer trusted one another since they knew all banks traded the same worthless crap CDOs and so forth.
A funny effect of this was seen in early January in the USA. Even though Ben Bernanke had lowered interest rates quite a bit, banks in the US continued to offer their CD customers high rates of interest for money loaned to the bank. How was this possible? Usually when rates go down, CDs are offered at lower earnings rates. But what happened was this: the US banks are desperate for cash! They need it really badly because of their own bad debt. And so they were willing to offer higher interest rates on CDs to customers willing to loan to the bank (after all the banks are getting much from each other these days).
And then the world wide stock melt down...and Ben's unheard of before large drop of interest rates last Monday. But if you think the fun is over....hold on. More and more paper instruments are going down and the unwinding of bad bank debt is still going on. The tiny little amounts of cash that the ECB and Ben inject are as nothing to the real market - the derivatives market. Charting this market shows that a huge bubble of insurance debt (this market was created as a form of insurance) was inflating from June 2007 until December 2007. A huge spike was created. The frozen part of this market was all those derivatives created or based on bets made that were connected to the bad housing debt in the USA. The newly created bubble peak derivatives over that were those created to patch up and insure against the frozen part. This mass was freezing up steadily from August through November. There are still no signs that things are changing the other way.
Now those of you who know how this international system works may know that when Tits-up time comes the big bankers like to have some historical bit of trivia to blame everything on...like Arabs, Arabs and the oil embargo caused the 73 stock slump, like Iran and their hostages caused the 80s recession, like Saddam caused the early 90s recession, like 9-11 caused the 2001 down turn. (truth was - I got up early that day on 9-11 to watch the stock market melt down - all real market watchers knew that on 9-11 the market was supposed to tank, per wave charts and so forth. Of course a little pop, pop, pop allowed the markets to shut down for 10 days just in the nick of time.)
So what will be the plausible historical event to blame our upcoming market collapse on?.....hmmmmm.....I wonder....could it be something in the Persian Gulf? :doh: