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Thread: Credit Analysts needed. Plunge Protection Team.

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    Default Credit Analysts needed. Plunge Protection Team.

    http://zerohedge.blogspot.com/2009/0...iring-ppt.html

    "All you wannabe masters of the universe who want to bypass the three- to five-year apprenticeship at Goldman Sachs and go straight to the motherlode of manipulative machinations, look no further than this job posting on the Ladders, in which none other than the bastion of free market communism, aka the New York Fed, is seeking a Financial Analyst/Corporate Bond Analyst. With all the newly minted billions of corporate debt floating around and not yet purchased by gullible "buy-and-hold" investors, the PPT has realized it is short one credit Wizard of Oz. An amusing blurb from the Request For Plunge-Protectors (RFPP):

    The candidate would be expected to develop a macro approach towards analyzing corporate credit with a focus on those high-grade and high-yield sectors that have implications for monetary policy and financial stability. This will entail tracking credit spread movements in both cash and derivatives markets and understanding how they are impacted by changes in the macro environment. This will also entail informing policy makers on what these markets say about the macro environment and market liquidity. A key element will also be to understand the market microstructure against which price movements take place and the conditions under which they could negatively impact market liquidity and financial stability. To this end, the candidate would be expected to develop extensive contacts with corporate credit market participants – both primary dealers and buy-side investors -- as well as to interface with other areas of the bank, such as Bank Supervision and Research.
    It is about time the Fed hired someone to inform them that both the "macro environment and market liquidity", not to mention the "market microstructure", are on the verge of collapse. "

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    Default Re: Credit Analysts needed. Plunge Protection Team.

    ^^^ this would be amusing if it wasn't so ironically tragic as well.

    This 'position' would be easier to fill if the FED would come out and admit that it operates an 'anonymous Cayman Islands Hedge Fund' ... which is frequently uses to route freshly printed US dollars into buying particular US stocks / indexes / bonds when a sector is in immediate need of 'Plunge Protection' !!! Also, this 'anonymous Cayman Islands hedge fund' would appear to only operate between 3 and 4 PM New York time LOL !

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    Default Re: Credit Analysts needed. Plunge Protection Team.

    why 3 to 4 only, Melonie?

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    Default Re: Credit Analysts needed. Plunge Protection Team.

    ^^^ NYSE / NYMEX close at 4 ! The one hour scenario seems to play out in the form of 'hockey stick' daily index charts, where a gradual loss throughout the trading day are suddenly 'erased' during the last hour of trading.

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    Default Re: Credit Analysts needed. Plunge Protection Team.

    Why the hate? Is the economy hitting strippers harder than most?

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    Default Re: Credit Analysts needed. Plunge Protection Team.

    Yes strippers are arguably being hit harder than most, both because of decreased 'discretionary spending' ability on the part of strip club customers, as well as by impending 'small business' tax increases which will affect most 'serious professional dancers'.

    In regard to this thread topic, as well as other DD topics, if there is any 'hate' involved it is a result of being repeatedly 'lied to' by Wall St, by the US gov'ts official statistics, being deluged by 'smoke screen' news stories about the swine flu or AirForceOne buzzing new york (while NOT reporting in depth about hugely important financial issues i.e. Chrysler bankruptcy, record VISA losses, US dollar turbulence etc.)

    You might be interested in checking out

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    Default Re: Credit Analysts needed. Plunge Protection Team.

    Thank you, Melonie! You are amazing, as always! Best analysis of the current state of affairs I have able to find on the web is right here, on the stripperweb forum, mostly due to Melonie's research and commentaries.

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    Default Re: Credit Analysts needed. Plunge Protection Team.

    ^^^ I highly doubt that is actually the case, but thanks for the vote of confidence nonetheless.

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    Default Re: Credit Analysts needed. Plunge Protection Team.

    Melonie, there is plenty of information on the web, some of it very credible. What you are particularly great at, is finding the most important news, delivering it to us and explaining in an easy to understand manner what the news TRULY means.
    It saves us time, and teaches us plenty.

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    Default Re: Credit Analysts needed. Plunge Protection Team.

    well, for what it's worth, here's a 'tin foil hat' opinion re recent Plunge Protection Team actions ...

    (snip)"In the first three weeks of April this year, insiders for NYSE listed companies sold 8.32 times more stock, by dollar value, than they purchased. What does that tell you? We won't insult your intelligence by answering. If ever there was an indicator to identify a sucker's rally, this would be it. This is the ongoing Big Sting Two as strength is created by the PPT for insiders to sell into as our economy collapses under a dollar-busting juggernaut of fiat paper, aka Federal Reserve notes, being monetized at light speed as our President and Congress go on a spending spree that makes the spending habits of a Saudi sheik's entourage look like those of a group of Welsh penny-pinchers.

    Then, of course, once the rally has reached its manipulated end as disclosed in advance by the PPT to insiders, all the elitist insiders go short while strength on the sell side is created for them to short into as investors are terrorized by Cramer and/or Buffet. If you are not an insider, you need to get out of the stock markets and bond markets - NOW!!! "(snip)

    from

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    Default Re: Credit Analysts needed. Plunge Protection Team.

    more detail ...

    (snip)"Remember, the elitist scum running the PPT do not have to drive the Dow back to 14,000 again. They just have to gyrate the stock markets up and down, alternately producing opportunities to go long and then to go short, creating mega-profits for Illuminist financial companies which are attained with money borrowed at zero interest and leveraged at psychopathic levels, while trillions in derivative losses continue to be hidden via government-approved mark-to-model rules. Then the zombies say: See, we are healthy, profitable and have plenty of capital. Therefore, we no longer need your TARP money, which is stopping us from paying out handsome salaries and bonuses to our henchmen criminals who continue to milk the system, and their shareholders, right down to the very last drop. It's sort of like a Maxwell House commercial about the goodness of its coffee. Da-da da-da, da da, da da-da, da da.

    These market gyrations will continue until the markets can no longer be floated on a cloud of hot air created by the combined forked-tongued exhalations of elitist bootlickers, Obama, Bernanke and Geithner, as they pathologically lie about so-called signs of recovery to draw sheople-sucker-dupe herds back into the meat (stock) markets for a fresh new slaughter. Roast mutton anyone? Even the media morons sound as if they are both stunned and stupefied as the markets continue to hold against the worst economic news in our history, with a potential pandemic thrown in for good measure.

    They are calling this new phenomenon the "see no evil, hear no evil, speak no evil" stock markets, which is really just the next iteration of what we have called the Goldilocks Matrix in many past issues of the IF.

    As we continue to privatize profits and socialize losses with the latest stimulus package, to be followed soon by many more packages totaling multiple trillions, the Fed continues to monetize treasuries to create what would be, at current rates of return, an otherwise non-existent market in US treasuries, while using a portion of these monetizations to also buy agency paper from foreign holders in support of what would be, at current rates of return, an otherwise non-existent market in agency paper."(snip)

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    Default Re: Credit Analysts needed. Plunge Protection Team.

    http://zerohedge.blogspot.com/

    "here are the facts, courtesy of the NYSE's public record keeping system.

    The first chart below demonstrates total program trading in the NYSE since mid August, a month before the Lehman bankruptcy. The black line demonstrates total indicated program trading, which absent volatility, has remained relatively stable, averaging roughly 4 billion shares weekly. And while most other NYSE member firms have seen their PT volumes stay relatively flat as well, GS has seen a dramatic ramp up, controlling about 15% of PT in Q3 of 2008 which has risen to almost a quarter of all NYSE PT over the past quarter.

    http://4.bp.blogspot.com/_FM71j6-VkN...-h/Chart+1.jpg

    But while total Program Trading includes Principal trading (i.e., trading not on behalf of its clients but for its own benefit; this is the category where SLP would also fall in under NYSE guidelines), as well as Facilitation and Agency trades, the big surprise arises when one looks at a historical analysis of merely Principal trading. The chart below pulls only the Principal trading data for the top 10 NYSE members. And like before, while the total amount of total Principal trading as a portion of NYSE PT has stayed relatively flat, at about half of total PT volumes, Goldman's share has exploded over the past six months: while GS was responsible for around 27% of Principal NYSE stock trading in Q3 and most of Q4, that number has risen to the low 50% range over the past 3 months.

    http://4.bp.blogspot.com/_FM71j6-VkN...-h/chart+2.jpg

    The last two charts demonstrate the divergence of Principal trading as a fraction of total PT by any given broker. It is obvious that while the majority of top NYSE member firms have had Principal trades stay around 40% of their total PT volume, Goldman has seen its share of Principal trading go from 60% all the way into 90%: a vast majority of all its trades are merely for its own benefit (and potentially as an SLP funnel).

    http://3.bp.blogspot.com/_FM71j6-VkN...-h/chart+3.jpg

    And lastly, demonstrating Non-Principal trading indicates, as expected, a trend where GS' client have taken a progressively smaller relative role as part of its total PT, and currently GS Agency volume as a % of Total PT is the lowest of all top NYSE brokers, with total NYSE Agency volume remaining relatively stable.

    http://2.bp.blogspot.com/_FM71j6-VkN...-h/chart+4.jpg

    So what is really going on here? Connecting the dots is difficult with so little freely available information, and the NYSE seems to be keeping mum on disclosing anything above the absolute minimum when it comes to the SLP, and brokers' participation in it.

    My interest was piqued by one of the points Canaday brought up: "What the table doesn’t show, but a deeper look at the numbers reveals is that the vast majority of this total is trades by our quantitative trading desk." Maybe Canaday can expand on this a little more, as it is public knowledge that recently the heads of GSAM and Goldman Global Alpha left the company: Ray Iwanowski and Mark Carhart, who ran the quant operation, and Giorgio De Santis who ran research, are no longer at the company. Their departures in themselves are not surprising considering Global Alpha lost over 80% of assets or roughly $10 billion in the course of 2008 (precipitated by the quant shakeout of August 2007). But is there something else going on here? Their departures occurred at the end of March, just as Goldman's Principal % of total NYSE trades had peaked at almost 55%, yet when they departed, this number dropped by a not insignificant 12% to 43%, only to rebound promptly thereafter. Is there more here than meets the eye?"

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    Default Re: Credit Analysts needed. Plunge Protection Team.

    ^^^ this was touched on under a different heading in another thread ... where the point was made that much of the recent 'sucker's rally' was based on low volume marginal trading BETWEEN huge Wall St. programmed trading accounts. The theory goes that this sort of trading, using a comparatively small amount of total dollars, was able to disproportionately pump up share prices of selected index component stocks ... which in turn allowed Wall St insiders to 'unload' a good chunk of their holdings.

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