I just don't buy into it (PPT). Markets too large (these days esp)
PLUNGE PROTECTORS ARE ALL OVER MARKET MELTDOWN CLICK TO ENLARGE
August 16, 2007 -- THE Plunge Protection Team and the Federal Reserve saw it coming.
The "it" is the turmoil in the financial markets that we've been seeing ever since the failure of some subprime mortgage securities began scaring the bejeezus out of investors.
And in case you haven't noticed the Plunge Protectors - the real name of which is the President's Working Group on Financial Markets - are no longer secretive.
The Treasury is still ignoring The Post's long-standing requests for information on the PWG under the Freedom of Information Act.
And Treasury Secretary Hank Paulson hasn't gotten back to me on my recent request for an interview.
But the rest of the media is suddenly tracking this mysterious organization. Trouble is, while the press now seems to understand the PWG's importance, nobody is asking the big question - what is the group willing and able to do in a crisis? Now that it suits the group's interest, the PWG wants everyone to know it's on the job.
Let me quote from this past Monday's Wall Street Journal: "The market turmoil prompted the President's Working Group on Financial Markets . . . to trigger protocols established by Mr. Paulson shortly after he took office last year.
"They include a detailed list of who is going to call financial institutions, risk managers, traders and chief executives to keep tabs, how often they should call and the like."
The Journal went on to say that Paulson instructed a Treasury Department official named Emil Henry to craft six "meltdown" scenarios.
"One was the catch-all General Withdrawal from Risk Taking. Others included a liquidity crisis, stock market meltdown and oil shock," according to the Journal.