Cazenove Strategist Discusses PPT And POMO Interventions To Keep Markets Ramping Higher

Tyler Durden's picture

CNBC (the infinitely more credible European edition) has run a stunning interview with Cazenove technical strategist Robin Griffiths in which the banker discusses such taboo items as the Plunge Protection Team's intervention in the market for the month of September in a last ditch effort to keep stocks from tumbling following the horrendous August performance. First Griffiths dissects POMO: "One of the reasons [for the surge] is POMO: what happens is the Fed buys Treasurys off the banks, the banks put the money into the market...That amount of money turns the algorithms up, then all the algo trading hits the market. Real life investment managers are not doing this buying. They know that equities are for losers." And the stunner: "The S&P is being effectively goosed up by the Plunge Protection Team - they can keep doing this for a little bit longer... But according to me the April high will not of those Keynesian stimuli did not work." As for bonds: "There is an old saying, don't buy the Fed - yields will go down. Even now you should be buying bonds and not equities. The bubbles never burst when wiseheads in the media tell you it's a bubble that's gonna burst, they burst when they've given up on that and tell you this time it's different."

h/t London Dude Trader

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TheGreatPonzi's picture

No surprise here. But it's quite a shock to see it discussed in broad daylight.

Sudden Debt's picture

Nobody watches CNBC anymore :)

The only way they would get some viewers these days would be if they would replace the advertisings by porn movies.


Dismal Scientist's picture

Correction: nobody watches US CNBC anymore, populated as it is by cheerleaders and sock puppets. As Tyler points out, the European edition still has some credible guests, comments and even the occasional presenter. Although the new girl interviewing Robin Griffiths is rude and lacking in basic knowledge.

traderjoe's picture

Rick Santelli this morning said "bought and paid for, bought and paid for" when asked to discuss how/why the rally had occurred this September. In my tin-foil hat mentality, I took that he was referencing the Fed/POMO, but that was as close as he could come to discussing it...

whatsinaname's picture

Bovespa & Sensex crowd will get sheared as well - dont buy that BS.

BobPaulson's picture

I'm pretty sure I'm like the main stream media in that this trend won't change until I get used to it and look away. 

gwar5's picture

I like this guy. The rest of the pundits are somewhere in Egypt floating down the river which shall not be named.

etrader's picture

Mr Griffiths was at HSBC for years, he knows the score on how things work.

He's doing a King world news interview ( friends of ZH )this week along with Hugh Hendry

ThreeTrees's picture

Definitely gonna be listening to that.

rapacious rachel wants to know's picture
rapacious rachel wants to know (not verified) Sep 27, 2010 8:13 AM

I wouldn't want to be owning bonds when it does reverse.

ArrestBobRubin's picture

Yup. Bonds and the Dollar are the real bubbles. And gold is the anti-bubble.

SheepDog-One's picture

They just 'discuss' POMO now as if it wasn't pure evil, nevermind a desperate last gasp.

Arthor Bearing's picture

It's more surprising to me that alot of these experts are talking about the endgame of the dollar and the US/Western economy, but then going on to predict what markets will be good investments in the event of SHingTF.

Wouldn't a collapse create totally unpredictable conditions? How the hell are you gonna know what is a good investment strategy after the US becomes a pirate nation with a gigantic military and no money? Brazil is gonna be robbed blind, in all likelihood. Where do you invest your money in pirate world? Goddamnit.

packman's picture

Where do you invest your money in pirate world?

Simple - what does everyone associate with pirates' treasure?  (Hint: usually it's not a chest full of stock certificates.)

Arthor Bearing's picture

Well said. You also need a good supply of cutlasses and cannons for when the pirates come for you treasure, too #2ndAmendment 

Dead Cat Bounce's picture

You can always invest in us cats, as we are good at catching rats and mice, and when Mad Max comes down, you are going to need as many of us as you can get!

barkingbill's picture

this is interesting i hear this opinion now and then. but how will it work? pratically speaking i mean, morally of course its wrong. but i mean practically, as a pirate nation?

how will we fund our pirating expeditions? if the dollar is collapsing won't that put pressure on our military adventures as well? what about what other countries can do selling our bonds etc...

im not so sure that an economic collapse wont just mean that we have to give up the pirate adventures that we have now undertaken...

fiftybagger's picture

"Where do you invest your money in pirate world?"


Good question.  Where pirates do.  Gold and silver buried at a hidden location.  You think I'm joking?

Dead Cat Bounce's picture

Golden Mice and Emerods bitchez!

VWbug's picture

note to self: when TSHTF head for fiftybagger's place


actually, why wait??

truont's picture

Arrrrrrrr!  I love me pieces of eight!

Midas's picture

I wasn't looking forward to the collapse, but with a phrase like "pirate nation with a gigantic military and no money" you make it sound like fun.

ArrestBobRubin's picture

Gold. Silver. Palladium. PM Miner shares. This is no drill!

slvrizgold's picture

You're damn straight.  This ain't no drill!  Silver $30 by year end bitches and gold $1650 so Sinclair wins his bet (no takers).   Even then that would be *only* 55:1 silver:gold ratio...  STILL too high imo.   Ever notice how SHINY a mint fresh silver bullion coin is?  I think you could almost use it to burn a piece of wood on a sunny summer day, like when you were a kid and had the magnifying glass.

tunaman4u2's picture

CNBC & even Zerohedge have everybody all into gold, stocks whatever based upon more QE. We all know QE hasn't worked why "Rush" to do it again. I could see QE2 if we needed it but right now is not that time. We need to be A LOT worse than here to warrant QE. We've priced in QE3 at these levels with no need for QE2 yet! 

t0mmyBerg's picture

We all know QE hasn't worked why "Rush" to do it again

An interesting question.  I personally think that Bernanke has devoted his life to this line of thinking and is now in a kind of trance where he just has to explore the boundary conditions of his theses and due to historical circumstances actually has the opportunity to do so.  Which brings me to the thought I wanted to put out there on the Monetary Endgame post but there are so many comments there it is pointless, so I will do it here instead.

All of the dollar destruction ideas sort of assume that QE.x is basically a done deal, and with good reason - if you read the Fed Statement from last Tuesday ( it basically says that further QE is up next.  And this, along with the weak dollar it forces, probably suits the Administration agenda just fine so there is a confluence of interests.  But there is an election coming that is going to change the setup in DC.  Might that not change things such that Helicopter Ben wakes from his trance?  What if the conversation changes to something where new expectations prevail?  Where someone starts to question the inevitability and desirability of destroying the dollar and de facto defaulting through inflation? 

I understand that no matter who is in charge, there is a structurally political impossibility of doing the right things, or even the efficacious things, and I understand that western civilzation is saturated with debt, but rarely do the extreme scenarios unfold.  Just a thought.

ZakuKommander's picture

"change the setup in DC . . ." You speak as if a group of highly intelligent and economically astute individuals will take up residence in the Congress come January.  Heh.  

t0mmyBerg's picture

No.  Whatever your personal politics, the idea here is agnostic.  The point is that a new set of committee chairmen and women will be running things and calling their own hearings.  It is possible that a new group might ask different questions and result in a different oversight milieu than the current group.  In sucn an atmosphere, it is possible that pressure to reconsider the destruction of the dollar resulting from a stated or unstated policy of stealth default on the debt of the United States by attempting to inflate it away, might arise.  That is all.  As a trader, though I am personally wide open to the destruction of the republic meme and in fact have made all my money this year short equity indexes and in other trades correlated to that idea, I also have to question my own predispositions constantly and this thought occurred to me as one that is plausible.  Do you have an opinion on that?

Turd Ferguson's picture

Something tells me that Mr. Griffiths won't be appearing on the "B-cups and FOAD" show anytime soon.

Robslob's picture

I can't believe I want to relocate to Europe so I can hear some form of truth in the media...

I love this country more now than before as I see what can happen when you get busy in life and forget to watch the very people you thought you trusted to do what is right.

In every end there is a new beggining and I am ready to rebuild and this surely means starting over as a country...we need honesty with each other before we can expect our government to follow OUR lead.

So it begins....

Temporalist's picture

Honesty with each other begins with honesty with one's self.  Most people delude themselves as CD often points out so have fun trying to get people to be honest as a group.

London Dude Trader's picture

Actually he's a regular guest on both CNBC Europe and Bloomberg TV, and always just as outspoken. 

As Tyler rightly mentioned, CNBC Europe (and CNBC Asia) are far more informative and less biased than CNBC in the US, with its crap being spewed forth daily by the GE propaganda machine's studios in NY/NJ for consumption by moronic US housewives and Joe Sixpacks. 


Fur Trader's picture

Right on.  Watch CNBC Eurpoe 04:00 until 05:55, then sound off CNBC and sound on boring Canadian Business TV.

EscapeKey's picture

I'm starting to question if it's an American phenomenon - a TV station such as Fox News simply wouldn't fly over here, and CNBC are more impartial?

grunion's picture

I take offense to your characterizations of my fellow citizens. I will not set idly by while you carry on a wholesale trashing of working (and non-working) Americans.

Which puts you in that special group of people I would just love to meet personally.

But until that glorious moment comes to pass, I will just have to let, "Fuck off, you arrogant, selfish, egomaniac, turd merchant, eurotrash.

Try loving others as you so obviously love yourself. Jerk

berated's picture

Settly down, g. He wasn't calling ALL of us "moronic housewives" or "Joe 6-packs", only those who regularly watch CNBC (which, according to their ratings, is down to about 11,000 or so...).

Freebird's picture

Bang out of order. From recollection the Dude is an American working in London.....

A Man without Qualities's picture

Interesting - I imagine he'll be given a very good offer to take early retirement as a reward for his honesty...

Sudden Debt's picture

let's hope he looks to the left and the right 5 times in a row before the crosses the street tonight or he might get runover by a white van...

SheepDog-One's picture

The bubble pop point may not have anything to do with market conditions since the Gubment, UN, even the Vatican says aliens are due to arrive and hover over major US cities by mid Oct. 

SheepDog-One's picture

Oh you havent seen all the news flying over the weekend? UN appoints an ambassador to the aliens, Pope says he'll baptize the aliens, US top military officials on Wednesday to publicly announce existance of aliens and OH btw will arrive Oct 13th. Big flase flag coming people, to wipe the slates clean.

John McCloy's picture

You know sheep last month I was reflecting on all the lies and efforts by the elites to bring about globa l governance, the controlled media operations and the stunning admittance by a CIA official that " yes they did produce at least one fake Osama video" anf then I see how America and the rest of the world is just tired of the same old Muslim boogeyman creation attempts.
The access of information is preventing the lies from gaining much traction any longer and so I said now if even after 9/11 ten years most Americans simply are beginning to see these war expenditures are better used home and we are undoubtedly expanding unnecessary wars and now that Americans know that the Gulf of Tonkin incident never occured and it was seized as an excuse to war profiteer what is next.
So I asked myself this and laughed in internally and said " They have no tricks left up their sleeve that the public will swallow as motive and they would need a war of the world scenario"
And then it hit him me and I stopped laughing..the one event that could unify the entire globe and usher in global governance would be an Alien invasion. One currency , one globe and one people unified against the interstellar invaders.
I then reflected upon all the proof we have of advanced aircraft that cannot be terrestially confirmed and we all know either we are not alone or we possess secret aircraft not yet shown to the public. I have aske myself why with so much progress in technology are we stalled at jet aircraft?
The answer is oil and the globalists have no wish for this technology to become available since it undermines oil and energy interests. So they could stage an event using "alien" craft.
I also find it odd that only last month a book was published an highly publicized about military officials confirming the existance of UFOs.
Now I may have had a few too many bowls of black helicopter cereal but after everything I have witnessed the only unifying event after the masses are so adamantly repudiating globalization is Independence Day.

Arthor Bearing's picture

The idea isn't a new one, Alan Moore played on the same theme in Watchmen

John McCloy's picture

Well here are all the recent news items that pertain to this:

  The most powerful global unifier would be an Independence Day like scenario False Globe operation that would strike fear and create global unification against a common "fictitious enemy". We must admit at this point that UFOs undoubtedly exist and they are either extra terrestrial or secret defense aircraft. I have been trying to connect the dots and a few important news stories in the mainstream media has led me to believe that they are laying the ground work for even something as outlandish as this.

1) A few days ago the U.N. Appointed " space ambassador to greet alien visitors'

2)5 Days ago, "The Pope Says he would Baptize Aliens"

3)Just out today. U.S. & U.K. "Aliens have been buzzing around missile bases and deactivating nuclear weapons, according to a group of six Air Force officers and a UFO researcher"

4)Leslie Kean came out with a highly publicized by the Main Stream Media book last month discussing the confirmation by retired generals as to the existence of Aliens. And just out today."Best-selling author Leslie Kean will approach Congress, Obama on UFO disclosure"
5) Then we also had the highly publicized Chinese Airport closure due to UFO activity.

Temporalist's picture

I just hope the aliens go after Justin Beiber and strike him from the records of human history.  Lady Gaga after that.  And I hope they don't take Howard Stern seriously for being the King of All Media and whack him first.

still kicking's picture

There were also multiple reports of the 101'st and 81'st being put on higher alert and potentially activated for domestic disturbances this past weekend.

ultarnerd's picture

Actually if anyone here wants to know the best available theory for the possibility for warp drive technologies see my very neglected website If its not possible then forget the chances for anything like this being real as the odds become vastly less.
I just had a frend tell
me about this conspiracy theory where the government plans to scare people with aliens to get a everyone united leading to a greater world control and I didn't play much attention to him at the time.
But it makes sense they could try that.
It still strikes me odd that this theory actually works so well and is so simple that I sort of find it easier to believe there was some hidden conspiracy to keep the theory hidden, with the present nonsense theories about the universe starting from a single point without causality etc etc. And much is untestable so does not deserve to be called theory.This stuff is testable.

What it taught me is.The value of truth is more determined by the scale quality and duration of its marketing department than by its actual degree of intrinsic truth.Look at Churches.

What value has such truth if no one is payed to teach it.