Trump Plans to Convene Plunge Protection Team (PPT)

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by Mish Shedlock, The Maven:

In lieu of firing Powell, President Trump has a new idea: Convene the PPT

President Trump now advocates intervening in the markets if he does not like the direction of the stock market. This is seriously crazy, but please consider Top Trump official calls bankers, will convene ‘Plunge Protection Team’

U.S. President Donald Trump’s Treasury secretary called top U.S. bankers on Sunday amid an ongoing rout on Wall Street and made plans to convene a group of officials known as the “Plunge Protection Team.”

“Today I convened individual calls with the CEOs of the nation’s six largest banks,” Treasury Secretary Steven Mnuchin said on Twitter shortly before financial markets were due to open in Asia.

The Treasury said in a statement that Mnuchin talked with the chief executives of Bank of America (BAC.N), Citi (C.N), Goldman Sachs (GS.N), JP Morgan Chase (JPM.N), Morgan Stanley (MS.N) and Wells Fargo (WFC.N).

“The CEOs confirmed that they have ample liquidity available for lending,” the Treasury said.

The Treasury said Mnuchin will convene a call on Monday with the president’s Working Group on Financial Markets, which includes Washington’s main stewards of the U.S. financial system and is sometimes referred to as the “Plunge Protection Team.”

The group, which was also convened in 2009 during the latter stage of the financial crisis, includes officials from the Federal Reserve as well as the Securities and Exchange Commission.

Seriously Crazy

This administration is seriously crazy.

Might I point out there are already breakers if the market falls too far, too fast. Also note that Yapping No Longer Works.

The PPT isn’t going to stop the decline unless it buys the entire market.

Dear Secretary Mnuchin, I have a question, if the stock market is undervalued and investors will rotate from bonds to stocks as you stated, why do we need a PPT?

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