With the utmost respect to Zerohedge, they are wrong in this case. First off, those who question if the PPT is still in business, just how the hell did the meltdown in the DOW last week get erased so quickly if it was not for the PPT? Does any rational individual think it was just bargain hunting, or a boost in confidence that allowed all of the losses to be recovered so quickly?

The reason that the market has been allowed to bomb for several hundred point intraday losses at all is simply to pave the way for the next round of easing. Period. Think strategically and it all makes sense. There are those that argue that the PTB have lost control of the markets and that is pure nonsense. The game is still just as rigged as it always was and we are a long way from real collapse. This is just drama that is being allowed to play out so the FED can run to the rescue again with another round of printed money to make everyone feel that things are all just fine again.

Lets also keep in mind that huge money is being made by the crooks on this increased volatility as they run the market up and down. Goldman has software to front run the big trades and I am sure they are clipping profits on each of these panic sells to the tune of hundreds of millions of dollars in profits. Does anyone think the big banks can earn a profit on every trading day in an entire quarter amidst this kind of volatility without criminal trading? Get real...

It is what it is. There have been trillions of dollars printed and dumped into corrupt banks to cover losses for bad debt, and much more to come. Meanwhile the money is not there to bail out main street. It means that the system will NOT come unglued, but it also means that nothing will really be fixed either, and the jobs and economic data will continue to suck. Do not confuse this kind of action with a real breakdown. Soon the next round of stimulus will be announced and it will be another bull market, and this time I think the metals and mining stocks will be sector leaders.

cheers!

mike