Reply #32: There comes a time when one ceases to be a conspiracy theorist and becomes a conspiracy analyst.

[ozymandius]

Although for many years its existence was denied and those who spoke of it were often labeled conspiracy nuts, now many in the business press speak openly about it and its alleged actions to finagle the Savings and Loan bailout, orchestrate the rescue of Citibank, ameliorate the disasters with the tech bubble, and salvage the stock market during the subprime August 16th meltdown. But what with the fixing of the Bear Sterns deal in spring 2008, the Plunge Protection team was clearly operating more obviously. Earlier this year the press reported President Bush convened in the Oval Office a meeting of the President’s Working Group on Financial Markets -- what Ambrose Evans-Pritchard International Business editor of the UK Telegram calls the “black arts unit.”

Why would its operations need to be hush hush? According to Phillips again,

Frequent intervention in nonemergency situations would only prompt unwelcome investigative reportage. Drawn-out credit-market problems could also increase that likelihood.

…Proof of federal orchestration could it be established, might lead to some very messy lawsuits.

...

Recognizing the huge risks to the US economy, President Bush called for a special meeting of his economic advisors on July 27th, to discuss the stock market, which had plunged as much as 456 points the previous day.

However, the PPT wouldn’t stand idle and allow the panic swirling around the Wall Street power brokers to turn into a crisis. "The market understands that the Fed will act in due time, if and when evidence accumulates that action would be appropriate,” said St. Louis Fed chief William Poole on July 31st.

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Imagine the tumult if the actions of the PPT were laid bare such that specific stocks and funds were supported while others were allowed to fail. In terms of funds - think retirement funds, pension plans, etc.