CNBC Guest Says Absent Plunge Protection Team Stepping In, Market Would Fall; Wien, Kernan Disgusted

Zero Hedge ^ | 07/08/10 | Tyler Durden

[TigerLikesRooster]

CNBC Guest Says Absent Plunge Protection Team Stepping In, Market Would Fall; Wien, Kernan Disgusted

Submitted by Tyler Durden on 07/08/2010 08:44 -0500

A highly amusing exchange occurred earlier on CNBC when guest Damon Vickers of Nine Points Capital had an unexpected moment of truthiness and turned some heads when he said that "unless the plunge protection team comes in over the next couple of days, the markets are looking very dicey here." When a disgusted Joe Kernan asks if Vickers was making a joke about the PPT, the response is "absolutely not - it's common knowledge that the government steps in and does things to step on the gas and buy stock here and there." To which Byron Wien has a strong retort: "I don't believe it." All that and much more in the clip below. In the meantime, the market is sure having a field day with stocks as once again bad news are discarded and the smallest glimmer of positivity serves as a springboard for yet another ramping short covering spree.

[Toddsterpatriot]

On the average day in 2008, $1.664 trillion was wired thru the Fed system. Why doesn't the economy collapse because of that?

Sorry, make that $2.995 trillion on the average day in 2008.

[vis a vis]

Read “No One Would Listen” by Harry Markopoulos—eye opening account of SEC incompetence

[Attention Surplus Disorder]

I suppose there could be a more meaningless figure than “par value” for a giant tranche of defaulted RMBS.

I see that $39.3 B in the prose, I don’t see it in the financials.

And as of 12/31/09 it’s mysteriously worth, after a $3.755B repayment, $15.9 billion. $20.8 - $3.755 = $17.045. Hey, a Blackrock’s gotta eat, right?

So not too bad, only a little over a billion in losses, and 44% of the port is CA and FL mortgage debt, what could go wrong?

[happygrl]

Karl Denninger thinks someone is manipulating the market and gives evidence:

http://market-ticker.denninger.net/archives/2474-Market-Manipulation-On-Display.html

[BunnySlippers]

[April Lexington]

Depressing. We are being had by very smart Quants who have figured our how to game the system in ways that Fedgov can't even grasp. Likely, this is off-shore activity by grad students who are at the cutting edge of technology and market operations. The lesson? Keep your money out of this market. The facts? Millions of Americans with 401k/IRA accounts managed by the lemmings are seriously at risk of losing that money. The “pro” money managers are a clueless bunch of lemmings who stampede from one emotion to the next. It is very difficult to get rich and very difficult to stay rich. Be ware of money managers. If you can't manage your own wealth, don't expect to keep it...

[G Larry]

Did you ever notice the administration deny the story?

[Toddsterpatriot]

I’m sure there are plenty of silly stories floating around that weren’t denied by the administration. Is that all the proof you were able to scrape up?

[mad_as_he$$]

Not for nothing but someone with a giant pile of cash works the market in the last hour every day. may be the plunge team or not but often it is a desperate move to stall a drop and it often runs out of momentum but sometimes it holds the market near even. Chart it it is very telling.