So Mr. Buffet Gets Into Insuring Bonds…Then Mr. Ross Gallops In…Coincidence?

by Jeff Brown

Real Estate Investments Broker

Author website

Recent events brought to mind an article published last week by one of my all time favorite Wall Street guys, Max Whitmore. In it Mr. Whitmore spoke of what’s been called the PPT, or Plunge Protection Team. The short version says after the October 19, 1987 stock market crash, this team was put together.

It’s existence cannot be proved. (Who cares anyway?) I don’t put any credence in any governmental economic ‘Black Ops Team’. I do however acknowledge documented empirical evidence of something happening. This is especially true when it happens more than once — the exact same way — with the exact same timing.

We can discuss if there really is a ‘who’ behind it over a beer some time.

Anyway, as Mr. Whitmore documents with historical and empirical evidence, there’s been a pattern a few times now, in which stock market moves cannot be explained. They happened. The way they happened are clone-like in their sameness. Clone-like? How ’bout down to a minute or two in real time? Each time they were bottom line effective. The market turned around.

He’s seeing it again. And again he cannot explain it — except for the fact it’s there.

Max Whitmore isn’t just another ‘stock guy’ trying to get publicity. He couldn’t care less. For Heaven’s sakes the last time I checked, the man now works mostly from his home in the midwest. He’s a former S & P trader of the year if memory serves. He’s one of the most revered and respected ‘chartists’ in his industry. In other words, he’s credible in the old school sense of the word.

Masterful segue to Mr. Buffet and Mr. Ross.

Keeping the above in mind, why aren’t we seeing more people reporting on what I’m seeing? Here is another, and here.

The end of 2007 has Buffet getting into the Bond Insurance business. Less than a month later we’re all talking about how to save the bond insurers. Come on now, this isn’t me trying to convince anyone of a new twist on the grassy knoll. This is happening in real time for all to see — and is incontrovertible. If the BawldGuy can see it, anyone can.

Can’t think of anyone better than Warren Buffet through whom to regain some credibility, stability, and most of all confidence.

Add to this Bernanke’s surprising .75 slashing of the Fed Funds Rate. If he cuts it again next week, it’ll be another few bricks in the wall for me.

Meanwhile, back at the ranch, Wilbur Ross is poised to buy into another failing industry. He’s known for this. In fact he’s often called the Master of Distress. He buys what nobody wants — it’s made him a billionaire. What does he like these days? Subprime. Go figure. He’s already made his move, investing $50 Million into American Home Mortgage Investment.

Let’s review.

Two of the most brilliant businessmen/investors of the last century think now is the time to put their money into this whole real estate oriented train wreck.

HHMMMMM

I would love to hear others on this subject, as I’m certainly not the guy for this. Brian Brady should have much to say, at least he might now since I’ve roped him into this by mentioning his name. 🙂 I won’t have to ask Greg. (get out your Latin to English helper)

A final note. When I broached this to Brian earlier today, and asked him about the so called ‘urban legend’ of the Plunge Protection Team, he’d heard of it too. When I brought up what Mr. Whitmore said about it he pinpointed 2003 as a time it might have been put into play. Whitmore had done the same, with literally minute by minute documentation.

I don’t know, and frankly I couldn’t care less if this PPT exists or not. More plainly said, if my interest in the subject jumped a couple levels I’d only then be apathetic about it.

I don’t have a solid position here, with the exception of the veracity of Mr. Whitmore’s charts. He’s a meticulously competent and experienced trader. His charts reflect everything that’s happened in the stock markets, (especially the S & P) for the last 40+ years. His reputation for character and integrity have never been questioned.