International Investing

The market’s surprise rally late last Thursday caused many to credit the shadowy Plunge Protection Team with propping up the market. US News has the info:

Yes, the Plunge Protection Team is real, except its actual name is the President’s Working Group on Financial Markets, or PWG. (The nickname comes from an old Washington Post headline.) After the 1987 stock market crash, President Reagan authorized the creation of the PWG—consisting of the Treasury secretary, the Fed chair, and the heads of the Securities and Exchange Commission and the Commodity Futures Trading Commission, so that top regulators and economic policy chiefs could formally consult with one another in event of a financial crisis as well as prepare a plan of action in case of a financial markets meltdown. For instance, it might advise the president to temporarily close the markets, as happened after the 9/11 terrorist attacks.

Who is on it? We don’t know for sure, but futures guru John J. Lothian names two candidates in his newsletter today, ” I am increasingly convinced that Citadel Investment Group’s Ken Griffin is the Chairman of the “Shadow Plunge Protection Team” and Warren Buffett is also a member of the team.”