Regular readers of this blog know I don’t believe in the Plunge Protection team.
Exhibit A has always been the Nasdaq’s 78% plunge from March 2000 to October 2002. If the PPT couldn’t stop that runaway train, what can you expect them to accomplish here, other than delaying the obvious and inevitable conclusion to a market drunk on cheap money and an economy driven by ultra low rates?
However, I do not believe the Fed or the White House are going to sit on their hands in an election year as the whole house of cards collapses around them. (this is true, regardless of which party is in the WH).
So let me open this up to the assembled multitudes: What is the likeliest course of intervention?
No answer too outrageous will be mocked. . .
What say ye?