Like everyone, I love a good conspiracy theory. Today, I heard a new one to add to my collection.
An economist friend of mine told me today that there were whispers in the land that something fishy’s been going on with the stock market since 1987. Seems that every time conditions are ripe for a stock market crash–like, say, a major telecommunications company suddenly deciding they’re light $4 billion–a mysterious influx of money arrives to prop up the markets at a critical moment. This is the work, the whispers say, of the Plunge Prevention Team; a mysterious secret team of economists inside the Federal Reserve charged with the task of preventing a catastrophic 1929-style stock market death spiral.
But that ain’t all. The PPT also uses disinformation to keep the small investor from pulling all his money–like, say, seeing to it that an incindiary court ruling is announced on the same day as the above-mentioned missing $4 billion.
Now, I said I collected conspiracy theories, not that I believed them. What do the august debunking minds of the board think about this one? Has anybody ever heard this before, or is my economist friend making this up out of whole cloth? Is there any evidence that potential market busters have been averted due to mysterious large influxes of money since the 1987 crash? What are the implications of the existence of such a team? Who would stand to benefit? Who loses? Do I need to get some of whatever my friend has been smoking?
This is the first conspiracy theory I’ve heard where the cabal’s goals seem at least quasi-benevolent. Unless you include Santa Claus.
“Ripe for a stock market crash”…
Q: What news event triggered the 1929 and 1987 crashes, respectively?
A: Nothing particularly newsworthy occurred. They both occurred in October, however and it is thought that market liquidity may dry up in September and October.
I therefore conclude that the PPT has tools far more powerful than news management. They must use mind control satellites
U.S. Government actions (typically in the form of loan gaurantees) have been done openly to keep major corporations afloat. Sometimes it works (i.e. Chrylser) and sometimes it doesn’t (i.e. Conrail). The major airlines may need bailing out now, because of falling passenger traffic post Sept. 11.
Since the Feds can act openly (though often they decide not to), why create magical conspiracy elves?
I guess the Feds won’t have to worry about subsidizing the tinfoil-hat industry. That customer base will never shrink.
Wouldnt it make more sense for this mysterious PPT to try to stop the market overheating in the first place? Eg. reveal a relatively minor scandal in telecoms or IT stock before the bubble grew large?
I’d say this is the weakest part of the theory. “They banned the pledge? Screw my stocks and retirement plans, I want to rant about those godless liberals!”
