What is the Plummet Protection Team and the Plummet Protection Plan?
For anyone who grew up in the 80's and watched Wall Street, the character of Gordon Gecco was powerful. He was a titan of Wall Street and epitomized the ruthless trader doing anything to make money in the market. One of the real life people who was an inspiration for that character is Asher Edelman. In the below video he chats with Robert Reich about manipulation he thinks is taking place in markets today.
Robert Reich and Asher Edelman Talk Manipulation of The Stock Market and Donald Trump
Robert Reich and Asher Edelman discuss the Plunge Protection Plan and the current administrations manipulation of the stock market.
The order handed down by Reagan and referenced in the video is Executive Order 12631--Working Group on Financial Markets
According to Investopedia, The name "Plunge Protection Team" (PPT) was coined by The Washington Post and first applied to the group in 1997.
The PPT, created in 1988 to provide financial and economic recommendations to the U.S. President during turbulent market times, is a group headed by the Secretary of the Treasury; other members include the Chairman of the Board of Governors of the Federal Reserve, the Chairman of the Securities and Exchange Commission and the Chairman of the Commodity Futures Trading Commission (or the aides or officials they designate to represent them).
"Functionally, subject to the availability of funds, the Treasury provides, at request (command) of the President, unlimited funds to acquire equity securities and futures. The purchase orders are executed through major banks (usually restricted to two banks, one guesses today Goldman Sachs and J.P. Morgan Chase). As part of the Reagan order there are no minutes kept and the PPT is not accountable to congress but acts in secrecy. "