Highly doubt it. The PPT came AFTER the '87, crashette.
Some day, all the jawboning and money-pumpin' of the PPT won't be effective...when the world has given up on the $USD. Until then, the PPT will backstop every decline before really negative sentiment sets in.
PPT is NOT the one pumping liquidity into the market. Following excerpt
tells you how..
<<<"So it looks like about $15.4 trillion in bank assets and liabilities is being backed up by a minuscule $40.2 billion! That's a microscopic 0.0026%. A quarter of 1%! Hahahaha! Fractional reserve banking at its finest! Hahahaha!"
Total Fed Credit expanded only $2.0 billion last week, taking the total to $861.6 billion. Not much of an increase, and sure enough, Doug Noland says, "Fed Credit has increased $9.4bn y-t-d and $31.9bn over the past year (3.8%)." Almost nothing, considering their record!
So the money to finance the world's bull markets is coming from someplace else. Hmmm! >>>
How about China, Japan, OPEC and others holding humongous US dollars and buying stocks instead
of Treasuries?
Edited by pdx5, 12 October 2007 - 10:58 PM.