Bear In Mind

So you don’t think that the Plunge Protection Team exists?

Perhaps you think that this is the half-baked notion of some crazy conspiracy theorists?

Then you need to read this.

A report by Sprott Asset Management quotes George Stephanopoulos (top advisor to President Clinton) as saying the following on ABC’s “Good Morning America” on September 17, 2001:

Well, what I just want to talk about for a few minutes is the various efforts that are going on in public and behind the scenes by the Fed and other government officials to guard against a free-fall in the markets. You reported just a while ago that the Fed has lowered the overnight interest rates, will put about $80 billion into the market. In addition, the SEC, the Securities and Exchange Commission, has relaxed the rules for companies on whether or not they can buy back their stock in case they start to fall.

And dozens of companies, including big companies like Intel and Cisco have announced that they would buy back their stock if necessary. Third, there will be some trading curbs in effect today. If the market drops by about 1,100 points, they will probably suspend trading for a while. And perhaps most important, there’s been – the Fed in 1989 created what is called a plunge protection team, which is the Federal Reserve, big major banks, representatives of the New York Stock Exchange and the other exchanges, and there – they have been meeting informally so far, and they have kind of an informal agreement among major banks to come in and start to buy stock if there appears to be a problem.

Source: Transcript of ABC News “Good Morning America”. “Newscast: SEC relaxing rules to help stock exchanges; Banks agreeing to help if market gets in trouble.” September 17, 2001.

Please note that Mr. Stephanopoulos served in the Clinton administration as the senior
advisor to the president for policy and strategy. He was a key strategist in both Clinton presidential campaigns and was involved in the development of virtually all major policy initiatives during President Clinton’s first term in office.

If you still think that the Plunge Protection Team does not exist, then you must also think that Mr. Stephanopoulos is lying about this. One conclusion goes with the other—this cannot be avoided.

If you wish to learn more about the evidence supporting the conclusion that the Plunge Protection Team does indeed exist, I strongly recommend reading this 41-page report compiled by Sprott Asset Management. It is the most well-researched document that you will find on the Internet about this topic.