Home Precious Metals

PMs vs. Stocks, and the realities of the PPT

jmski52jmski52 Posts: 22,897 ✭✭✭✭✭
Market manipulation by the government was made official when the Plunge Protection Team was created after the stock market crash of 1987. On reflection, one has to realize that *any* manipulation of a market has to result in inequities towards roughly 1/2 of the market participants at some point in the game.

Even if you assume that the PPT intervenes in markets for "the common good" (and ignoring the probability that market interventions are highly inequitable for the little guy) it appears that the superficial goal of the PPT is to support a rising stock market in any way possible, in order to keep stockowners believing in the American Dream.

If that's the case - a governmentally-rigged rising stock market to foster the idea of prosperity - does that create a positive, negative or neutral environment for precious metals?

Q: Are You Printing Money? Bernanke: Not Literally

I knew it would happen.

Comments

  • 57loaded57loaded Posts: 4,967 ✭✭✭
    the PPT would much rather have money flowing into capital markets than what they would consider flowing into a black hole (gold)


Sign In or Register to comment.