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jillian
01-25-2008, 05:00 PM
link that someone posted today about the PPT. I wanted to read it again and share it with my husband. But now I can't bring the site up....is it working for you? :confused:

http://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=A1YourView&xml=/money/2008/01/07/ccview107.xml

InLoveWithRon
01-25-2008, 05:13 PM
Works fine for me.. I copied the article for you, with people comments below it


Bush convenes Plunge Protection Team

By Ambrose Evans-Pritchard, International Business Editor
Last Updated: 1:18am GMT 11/01/2008

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Bears beware. The New Deal of 2008 is in the works. The US Treasury is about to shower households with rebate cheques to head off a full-blown slump, and save the Bush presidency.

On Friday, Mr Bush convened the so-called Plunge Protection Team for its first known meeting in the Oval Office. The black arts unit - officially the President's Working Group on Financial Markets - was created after the 1987 crash.


It appears to have powers to support the markets in a crisis with a host of instruments, mostly by through buying futures contracts on the stock indexes (DOW, S&P 500, NASDAQ and Russell) and key credit levers. And it has the means to fry "short" traders in the hottest of oils.

US Treasury Secretary Hank Paulson
Hank Paulson has faced an economic slowdown since leaving Wall Street

The team is led by Treasury chief Hank Paulson, ex-Goldman Sachs, a man with a nose for market psychology, and includes Fed chairman Ben Bernanke and the key exchange regulators.

Judging by a well-briefed report in the Washington Post, a mood of deep alarm has taken hold in the upper echelons of the administration. "What everyone's looking at is what is the fastest way to get money out there," said a Bush aide.

Emergency measures are now clearly on the agenda, apparently consisting of a mix of tax cuts for businesses and bungs for consumers. Fiscal action all too appropriate, regrettably.

We face a version of Keynes's "extreme liquidity preference" in the 1930s - banks are hoarding money, and the main credit arteries of the financial system remain blocked after five months.
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"In terms of any stimulus package, we're considering all options," said Mr Bush. This should be interesting to watch. The president is not one for half measures. He has already shown in Iraq and on biofuels that he will pursue policies a l'outrance once he gets the bit between his teeth.

The only question is what the president can manage to push through a Democrat Congress.

The Plunge Protection Team - long kept secret - was last mobilised to calm the markets after 9/11. It then went into hibernation during the long boom.

Mr Paulson reactivated it last year, asking the staff to examine "systemic risk posed by hedge funds and derivatives, and the government's ability to respond to a financial crisis", he said.

It seems he failed to spot the immediate threat from mortgage securities and the implosion of the commercial paper market. But never mind.

The White House certainly has grounds for alarm. The global picture is darkening by the day. The Baltic Dry Index has been falling hard for seven weeks, signalling a downturn in bulk shipments. Singapore's economy contracted 3.2pc in the final quarter of last year, led by a slump in electronics and semiconductors.

The Tokyo bourse kicked off with the worst New Year slide in more than half a century as the Seven Samurai exporters buckled. The Topix is down 24pc from its peak. If Japan and Singapore are stalling, it is a fair bet that China's efforts to tighten credit are starting to bite. Asia is not going to rescue us. On the contrary.

Keep an eye on Japan, still the world's top creditor by far, with $3 trillion in net foreign assets. The Bank of Japan has been the biggest single source of liquidity for the global asset boom over the last five years. An army of investors - Japanese insurers and pension funds, housewives and hedge funds borrowing at near zero rates in Tokyo - have sprayed money across the Antipodes, South Africa, Brazil, Turkey, Iceland, Latvia, the US commercial paper market and the City of London.

The Japanese are now bringing the money home, as they always do when the cycle turns. The yen has risen 13pc against the dollar and 12pc against sterling since the summer. We are witnessing the long-feared unwind of the "carry trade", valued by BNP Paribas in all its forms at $1.4 trillion.

The US data is now relentlessly grim. Unemployment jumped from 4.7pc to 5pc - or 7.7m - in December, the biggest one-month rise since the dotcom bust and clear evidence that the housing crunch has spread to the real economy.

"At this point the debate is not about a soft land or hard landing; it is about how hard the hard landing will be," said Nouriel Roubini, professor of economics at New York University.

"Financial losses and defaults are spreading from sub-prime to near-prime and prime mortgages, to commercial real estate loans, to auto loans, credit cards and student loans, and sharply rising default rates on corporate bonds. A severe systemic financial crisis cannot be ruled out. This will be a much worse recession than the mild ones in 1990-91 and 2001," he said.

Sovereign wealth funds stand ready to rescue banks, as they have already rescued Citigroup and UBS. But as Moody's pointed out this week, the estimated $2,500bn in lost wealth from the US house price crash is more than the entire net worth of all the sovereign wealth funds in the world.

Add fresh losses as the property bubbles pop in Britain, Ireland, Australia, Spain, Greece, The Netherlands, Scandinavia and Eastern Europe, as they surely must unless central banks opt for inflation (which would annihilate bonds instead, with equal damage), and you can discount $1,500bn in further attrition.

Not even a Bush New Deal can hold back the post-bubble tide that is drawing in across the globe. What it can do is buy time. Fortunately for America - and the world - the US budget deficit is a healthy 1.2pc of GDP ($163bn). Washington has the wherewithal to fund a fiscal blitz.

Britain has no such luxury. Our deficit is 3pc of GDP at the top of the cycle. Gordon Brown has shut the Keynesian door.

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U S. Treasury - Office of Domestic Finance
Comments

You know whats funny about folks asking whether or not the PPT's actions are illegal or not? Well it's the fact that the FED breaks the laws of nature constantly, and never gets questioned. When the media talks about liquidity injections, or infusions from the FED. Your average Joe gets some wild and fancy image of some fort knox looking facility that is nothing but an entire warehouse stacked to the brim with billions of dollars. The reality is that the fed just lends banks more money, by typing a few numbers into a keyboard somewhere. There are no armored cars, no armed guards, just some pudgy guy phoning a few banks somewhere and wall street gets to feel good another day. How is that not illegal? And for those who think core inflation is still 2%, time to get some real info. Oh, but wait American Idol is on! I gotta go!

Posted by Jake on January 15, 2008 10:49 PM
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The radical Neoconservative Republican crowd screwed up the economy… big time.

What average American, the Bush Administration, Fed and Wall Street can’t see coming is the American Economy, which purchases over 30% of all goods manufactured in the world, has been “debased.”

The Bush Administration has cooked the books concerning GDP, employment, inflation and other numbers released monthly by the US Bureau of Labor Statistics.

The manipulation of energy prices and refineries by big oil has sucked trillions of dollars out of American Consumers’ pockets and the World Economy.

Thirty-seven years of support by Republicans of Supply-side Economics, radical Think Tanks and PR Campaigns to convince Americans that Unions were bad brought membership down to 11% of all Americans. Wages and benefits went down with the Unions.

Under both Regan and the Bush’s Neoconservative Republican leaderships, who’s creed was “Greed and Supply-side Economics’ ”, the administrations legislated tax breaks for corporations and the Elitist top1% of Americans at the expense of the other 99%. Couple this with catalyst such as the collapse of the mortgage banking industry & housing prices, a liquidity crisis and pending student loan catastrophe. Then add in years of Union busting, NAFTA, CAFTA, Vietnamese, Central America and other Trade agreements, hundreds of thousands of H1-B & L-1 work visas, years of outsourcing jobs to 3rd world countries and open borders all which help eliminate the higher paying jobs, pensions and benefits for a majority of Americans.

The huge amount of spendable income/benefits these high paying jobs formerly supplied America and the World Economy has disappeared… gone forever. Resulting in a gigantic transfer of wealth from average Americans to the world’s Elitist top 1% and coffers of Corporate America.

The staged Iraq war has maimed and killed thousands of American Soldiers along with tens of thousands of innocent Iraqis’ while sucking billions of dollars of tax money out of the American economy that could have been used for social projects and paying down the national debt. America fights this war for Israel alone without their aid or troop support. Lobbyists, AIPAC and Radical Zionists within the Neoconservative Bush administration blindly led America into this war while helping channel billions of US tax dollars to Israel, Armament companies, big oil, military contractors, corporate friends and “misplaced billions”. This helped place Americans and America on the road to bankruptcy as the country with the largest national debt, and growing, in the history of the world.

Republicans and the radical Neoconservative Bush Administration have created the perfect “Financial Storm.”

As Hitler did during World War II, this administration utilizes “Authoritarian Rule” and the “big lie theory”… the bigger the lie the more likely people will believe it.

The American Economy was debased while our political system went from Democracy to Corporatism and as HBO’s lead character in John From Cincinnati once said… “The end is near”.


Posted by G. on January 13, 2008 12:03 AM
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How can the Plunge Protection Team's actions be legal? It is against the law to act in concert with others to try to rig stock markets. Why should they be allowed to use public money to do just that? I hope people shorting the market who get hurt start a class action against the American government. Who the hell do they think they are?
Posted by Mike Wilson on January 11, 2008 9:00 AM
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I would like to congratulte the Amercian commnetators here for seeing what the rest of the world sees. Some of the Americans will shout down other commentators without looking inwards declaring their patriatism as first and foremost. However, it is those that see where their country is going that are the true patriots. They obviously love their country, don't like to see what is happening to it and therfore question their government. It is you Americans that will save your country, not the "I'M AMERICAN AND I'M RIGHT" fools.

Well done.
Posted by david (Madrid) on January 11, 2008 7:24 AM
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Like homing pigeons, the credit excesses of this millenium (and before) are coming home to roost.
The credit pyramid is crumbling, and the Kondratieff Winter is upon us!
Posted by Colin Oliver-Redgate on January 11, 2008 7:06 AM

jillian
01-25-2008, 05:17 PM
Yes!!!

thank you very much!!! :)

InLoveWithRon
01-28-2008, 02:55 PM
no problem ;)

everyone needs to see this