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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SheepDog-One's picture

What better way than 'aliens' coming to tell us 'we' messed it all up, the benevolent leaders have been trying to show us 'the light' and theyve been doing their best benevolent work in our best interest only of course. But us insolent peasants just refuse to listen so now aliens must come and tell us we need 1 world govt, currency, set us straight on religion, C02 in the atmosphere, direct us to be slaves (we screwed up after all you know) all from the unquestionable 'higher intelligence'. Its a perfect ploy and of course most people will believe it all.

grunion's picture

Show me a live extraterrestrial and brother, I'll start believing all sorts of weird shit!

Diogenes's picture

Think Obama in green makeup and silver jump suit.

Dead Cat Bounce's picture

Are Aliens interested in us cats?

Cognitive Dissonance's picture

Yes, as finger snacks and to test recently repaired anal probes. :>)

This subject has legs. The problem is getting past all the disinformation and deliberate seeding of crazies into the small group of people who are seriously trying to research a subject that has been verboten for decades.

You're simply not of the "right" mind if you wish to discuss this subject. This "attitude" was deliberately infiltrated into the public meme through various psyops campaigns. Regardless of the subjects truth or not, the powers that be want a divided population. And this type of program is one of the many ways to accomplish this. 9/11 was another. And so on and so on and so on.

Minion's picture

One world government (for 1000 years time) was actually prophesied in a certain Book, coming after nations go to battle and a Presence comes with clouds, in the air, which temporarily unites the warring armies in self defense.

If you really get down to it, one world government is the only way to really solve our problems long term.  Unfortunately, one world religion is also necessary, and when mankind wields both government and religion, disaster is not far behind.  Are humans even capable of ruling themselves?  Diversity doesn't seem to work (Los Angeles, New York - very diverse and full of racial tension).  Xenophobia isn't any better. 

The most peaceful place I've ever been was the American South here just recently.  Everyone believed the same thing and despite two very different races, there was very little tension.  Their minds were set on a place beyond the clouds......... and fear of hellfire and eternal torment for breaking the peace!

Hephasteus's picture

They are going to fire up project blue boom and set haarp on just the right frequency and everybody is going to be electronically drugged is all I can tell.

Fuck em. They aint got sufficiently advanced technology to make me believe in magic. I'll tin foil up and crank the stereo and rock out.

SheepDog-One's picture

Yes, and the ultimate weapon- Slim Whitmans 'Indian Love Song' CD's and good loudspeakers.

Dead Cat Bounce's picture

Meow! Will I still get my cat food?!?

I am a Man I am Forty's picture

Anyone notice how HAARP is pushing the hurricanes away from the east coast??  Saw this on tv this past weekend, have no idea if there is any truth to it.

FreeElectron's picture

When CNBC talkers refer to "lots of cash on the sidelines that is ready to buy this market", should we think POMO?

truont's picture

This is the first time I have heard someone put their neck out there on TV and just say it:  The FED is propping up the US Equities.

This guy has guts.  Most suspect this is happening, but would never admit it on TV.

rocker's picture

You will never see a guy like this on CNBC America.  Bernie is back on world too.  He is so funny and does his job.

London Dude Trader's picture

FYI Robin Griffiths is 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. 


Spalding_Smailes's picture

Irish Car Bomb

Why Ireland is bailing out foreign banks

Robert Peston has a theory for why Ireland can’t bail in the sophisticated institutions which lent untold billions to the country’s beleaguered banks:

Take a look at the latest figures from the central bankers’ bank, the Bank for International Settlements, on just the exposure of overseas banks to Ireland (in other words, credit provided by pension funds, hedge funds and wealthy individuals would be on top of this).

Total foreign bank exposure to Ireland’s economy is $844bn, or five times the value of Ireland’s GDP or economic output. Of that, German and UK banks are Ireland’s biggest creditors, with €206bn and €224bn of exposure respectively.

To put it another way, German and British banks on their own have each extended credit to Ireland greater than Irish GDP. Which doesn’t sound altogether prudent, does it?

As for direct bank-to-bank lending, overseas banks have provided Ireland’s banks with €169bn of loans, which is also greater than Irish GDP.

Here’s the point: an economy as open and as dependent on foreign finance as Ireland’s cannot afford to alienate its creditors. If those overseas lenders asked for their money back now, Ireland’s recent fall back into a modest economic contraction could spiral into dark deep prolonged recession or even depression.

The implicit assumption here is that if the Irish government took away its backstop of Irish banks’ debts, there would be a mad dash for the exits, all of the banks’ creditors would refuse, overnight, to roll over any of their debts and the resultant liquidity crisis would make the Lehman collapse look positively modest.

It’s like there’s a whole new level to the famous adage: if you owe the bank $10 million, then you have a problem. If you owe the bank $10 billion, then the bank has a problem. But if you owe the banks $844 billion, then now the problem is back on you again, since at any time the banks can turn you into Iceland overnight.

I think the fear here is a very realistic one. In an ideal world, of course, the banks would understand the need for burdens to be shared and would also understand that staying invested in a healthy Ireland, even with a modest haircut on their original investment, is a much better outcome for all concerned than a mad panic and sovereign default with the debt of Irish banks falling in value to pennies on the dollar.

But we don’t live in an ideal world and the collective-action problems here are all but insurmountable: at the first whiff of a haircut, everybody’s going to want to be the first to bail out entirely. Ireland’s technocratic elite seems to understand that and so it’s unhappily bailing out its foreign lenders at 100 cents on the euro, even the government continues to slash spending domestically. It’s not fair, everybody knows that. But it might be unavoidable.

AnAnonymous's picture

Understood nothing of what you tried to convey.

The banks cannot recall their debts. How is it the issue of Ireland?

And Iceland was a thoroughly thought plan to make Iceland a lot more richer than it used to be.

The good run hit its end. Nevertheless, Iceland got much richer in the process. Usually, this kind of plan is enacted on some third world country whose only existence justification is to be extorted by western powers. The Icelanders managed to enact it on western powers. This gave insight on the diplomatic relations and so other stuff.

Still, Iceland got extremely richer thanks to the plan.

Thomas's picture

Show me a market--any market--that is not rigged, and I'll put some money there. As it stands, although gold looks rigged, the riggers appear to be losing so I will stay largely in that market.

compost_heap's picture

As outlined in the garynorth article, the new rallying cry for 2011: "Show me the gold" - stay tuned to a fed vault near you.

Cruel Aid's picture

Its rigged and pegged to the euro or some other non $ currency. It has been a reliable indicator for short term moves. When/if the Euro turns green, so does the S&P.

And no it is not that simple. 

Cognitive Dissonance's picture

I don't believe this guy.

I mean maybe 6 months or a year ago, I would have been cheer leading this guy all the way. But after years of cynical trolls, government agents, official announcements and white house public denials, along with nearly the entire universe of economists, investment bankers, pundits beating into me that this is all just tin foil hat conspiracy theory, I've capitulated and joined the patriotic side.

So I don't believe this guy. He can't be correct. I mean he just can't. I won't be able to emotionally survive another change of heart here guys. So I'm going to pull my nice warm blanket of denial around me and sleep through the storm.

Who's with me?

<sarcasm off> 

Arthor Bearing's picture

Who's with you? Literally everyone, except for a few outliers who are vastly overrepresented on this site. Makes it a pleasure to be here, though.

willien1derland's picture

I am forwarding him my Obama 'Hope for Change' poster & t-shirt - If that doesn't work I will start sending anti-depressants - He needs to speak with Erin Burnett - she will set him straight!

packman's picture

The Blue Pill does have it's appeal, doesn't it?


Cognitive Dissonance's picture

If you mean this one, I agree. In fact, it looks like it's being stuffed by the shovel full into the market on a daily basis.

packman's picture

LOL - well yeah there's that one too.


Kayman's picture


But if it lasts more than 4 hours....

Cognitive Dissonance's picture

But if it lasts more than 4 hours.... your central banker.

Dead Cat Bounce's picture

Surely cat steriods is a perfectly better alternative?

Zexe's picture

It is far better and healthier to live in an imaginary world you like than knowing the truth. Most of the time, you can't handle the truth.


What's more, shouldn't you people on ZH care for the greater good? And that good right now is to push equities and everyone's wealth a little bit higher so maybe we can start this ponzi engine over again....because be that as it may, this system we live in is the best so far and provides food for most of the people.

Cognitive Dissonance's picture

If all it's about is food on the table, you make a good case. Of course, it's about far more than that.

What these bastards are really saying is that I should be grateful I have a roof over my head and 3 squares a day. And that my neighbor does as well. And I should be delighted that I have my own personal hamster wheel. Hell, in third world countries, they're packed three or four to a hamster wheel.

So what if a small minority of the population are sociopaths and will kill hundreds of thousands in resource, power and control wars as long as I get my prime time TV and McDonald's quarter pound with cheese. Yup, so sorry for being a pest. I'll make it up to them by greasing my own anal track with land-o-lakes butter.

OK, I'm ready. Please be gentle mighty master.

Zexe's picture

A couple of decades back people considered themselves lucky to have food to eat , a roof over their heads and at least some form of security where your neighbour does not hit you in the head....

You lucky bastard you take these for granted now, god forbid we have your dooms day scenario , i will be happy to see you then srambling for food and having your sorry ass beaten by the strongest..... you are pitiful

still kicking's picture

you mean the peasants right?  Because I assure the elite did not live that way you pompous jackass.  No one here takes this for granted but we demand better than overlords selling us short every damn time they can so they can simply pad the wallet a little more. 

Zexe's picture

Man, you really need to get out your fantasy world where all people are equal. Havent you learned yet that people are animals and there will always be rulers and slaves, under different names. Yes, you are a slave and there are some people who rule over your life. But it s all natural, if you were in their place you wud do the same. Of course you can always challenge them but the truth is you are the weak and they are the strong, so you will continue to be a slave. Just like many others. It s the struggle for power that will never end.

Cognitive Dissonance's picture

Stop struggling and learn to love your chains. OK.

So how are you doing with your own personal bondage? Or are you not of the slave class, but instead a master yourself?

Zexe's picture

I am a slave myself . Trying to become a ruler. Will i manage to pull it off? Chances are i wont, luck plays a big role here. It is a long discussion here, i live in an ex comunist country and some things are more apparent to me than to you i guess....when comunism failed and capitalism replaced it life changed for the better for most of the people. But guess what, those who ruled back in comunism , are the mentors and fathers of those who rule now. Two different systems, same rulers, same slaves. Because they are the strong and the rest are the weak. Its just natural.

Arthor Bearing's picture

That's incorrect because the system depends on exponential growth, which is impossible to maintain in a finite system (which the Earth is). Read The Limits of Growth, or visit

Cognitive Dissonance's picture

..the system depends on exponential growth, which is impossible to maintain in a finite system...

Thus capitalism is a sociopaths wet dream. Something for nothing and the chicks are free. 

Nihilarian's picture

Thus capitalism is a sociopaths wet dream. Something for nothing and the chicks are free


Ahem, last I checked, capitalism is used to elevate the process of allocating limited resources towards the greatest efficiency. 

Cognitive Dissonance's picture

That's the cover story that most of us are told and believe. And the reason there's an endless pool of suckers.

Nihilarian's picture

No one is claiming Utopia here. I'm just saying, if I had to pick the free market to allocate resources or "a really smart president", I'd choose the former. Of course, what we have in the USA can hardly be defined as capitalism given the top down approach toward the economy by the government (and elite that control them), not to mention the Fed.

In any case, I suggest you read this:

VWbug's picture

too bad both of those statements are clearly false.

capitalism does not depend on exponential growth, or growth at all for that matter, and resources are not finite (at least, not where i am , as the sun came up again today and farmers crops are still growing)

Cognitive Dissonance's picture

Are you talking the propaganda most of us have been taught and still believe or how the game is now being played?

Arthor Bearing's picture

The sun doesn't replenish resources at anywhere near the rate we consume them. There's energy stored underground which the sun gave to us eons ago, which has since compounded itself into rough carbon ("fossil fuels"). It's these reserves of energy upon which the system survives today. Now educate yourself on peak oil, and also look at the rapid degeneration of life on this planet due to pollution, the decrease in arable land, etc. etc. There are lots of indicators that time is running out in the system. It's not capitalism which depends on exponential growth, just capitalism the way we're doing it (a debt-fueled ponzi scheme)

AnAnonymous's picture

And in what period Capitalism has not relied on an expansion scheme?

Everything that works has been labelled capitalism. So anything that will work in a support decreasing environment will be called capitalism.

Still that is not the current situation. So when did capitalism not rely on expansion?

Arthor Bearing's picture

Considering that history as we know it has been one big human expansion, it would be quite difficult to answer this question satisfactorily

adem's picture

In my mind you failed to provide any rational as to why you believe those statements are false, let alone "clearly" so. Perhaps you are being facetious? If so, no need to read further.

The way in which capitalism is practiced by those of us in the U.S of A at present does rely on growth. The illusion that everyone can be successful evaporates without growth. I believe the original commenter was referencing the way things are in practice vs some sort of economic Utopian fantasy.


Your appeal to agriculture as an example of infinite resources is so ignorant it's humbling. Most, not all, credible scientists believe petroleum to be very much a finite resource and farming uses a massive amount of it. From fertilizer products to gas for the tractors and transportation to the plastics used in shipping and packaging.The labor involved in farming is also finite and intense. Planting and harvesting are fairly labor intensive, but so is the science behind farming (Monsanto...).



Zexe's picture

Before changing the system you need to change the fabric of the human brain. People are greedy no matter what you do.

Kayman's picture


Do you mean our greater good in the here and now (naturally, ignoring the piggies at the Fed trough) or the greater good of our children and grandchildren to whom we are passing on the poisoned baton of insurmountable debt ?

Zexe's picture

Debt will not be repaid ever. It s how the system works. Debt is money, nothing more. In order to extinguish debt you need to extinguish money.