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Manipulation, Not Error, Behind Market Plunge
Aim.org ^ | 5/7/2010 | Cliff Kincaid

Posted on 05/08/2010 12:45:19 PM PDT by mojitojoe

The major media say the chaos on Wall Street was the result of a "trader error, possibly a typo," as the Washington Post put it. Some reports claim the culprit was a "fat finger" on a computer somewhere that pressed the wrong key. But Zubi Diamond, author of the Wizards of Wall Street, says these claims are all lies. "What happened in the market on Thursday is a typical example of pure market manipulation" by unregulated hedge fund short sellers.

His book, whose subtitle refers to the scam that elected Barack Obama, warns that the same hedge fund short sellers were behind the financial crash of 2008 that paved the way for Obama's election to the presidency.

(Excerpt) Read more at aim.org ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: accenture; hedgefunds; soros; wallstreet
"What happened on Thursday happens to a select group of individual stocks on a daily basis as the hedge fund short sellers prey on common investors," he asserted. "They are now expanding the manipulation to include the whole market. They can now crash the market, panic shareholders out of their stocks, buy to cover their short positions for hefty shorting profits, and then buy back in at the bottom to open long positions and then recover the whole market (indexes) to normal levels."

These market manipulators, he notes, have the ability to drive prices down and then drive them back up, all within a 15 minute period. "How's that for no-risk investing?" he says. "They make money through stock price volatility and market volatility. They manipulate stock prices through unrestricted short selling.""What happened on Thursday will happen again," he adds. "They are getting bolder every day. The hedge fund short sellers, who are members of Managed Funds Association, and their strategic partners at the different stock exchanges, are responsible for the scam that was perpetrated on Thursday."

"The market plunged and recovered," he says. "The carnage and destruction of investor's capital was therefore concealed."

1 posted on 05/08/2010 12:45:20 PM PDT by mojitojoe
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To: ExTexasRedhead; pissant; Liz; AuntB; Willie Green

ping


2 posted on 05/08/2010 12:46:46 PM PDT by Clintonfatigued (Obama's more worried about Israelis building houses than he is about Islamists building atomic bombs)
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To: mojitojoe

Need to see these bastards swinging from lightpoles on Wall Street.

I’ll bring the ropes.


3 posted on 05/08/2010 12:52:23 PM PDT by Dick Bachert
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To: Dick Bachert

Yep, remember, McCain was up in the polls until they did the same thing in September of 2008. After that, the Kenyan coasted right in.


4 posted on 05/08/2010 1:00:57 PM PDT by mojitojoe (banking institutions are more dangerous to our liberties than standing armies. Thomas Jefferson)
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To: mojitojoe

Why can’t they track who had the most to gain and freeze those accounts?


5 posted on 05/08/2010 1:01:22 PM PDT by BushCountry (scratch here ############################### to reveal my thoughts on the Obama Administration.)
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To: Dick Bachert

Great real world example for Obama to harp on just in time for his financial reform legislation. Pay attention and see how many times he cites it as a reason why we need to pass his reform. They don’t even really try to hide anything anymore, they realize that nobody ever calls them on it.


6 posted on 05/08/2010 1:01:50 PM PDT by MiltonFriedmanFan
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To: mojitojoe

Chris Cox paved the wave for the stock market rout(s) when, as Chairman of the SEC, he presided over the elimination of the uptick rule, which, since 1938, provided “that, subject to certain exceptions, a listed security may be sold short (A) at a price above the price at which the immediately preceding sale was effected (plus tick), or (B) at the last sale price if it is higher than the last different price (zero-plus tick).” Had this rule remained in effect—and had the SEC enforced the prohibition against naked short selling—the manipulation of the markets by unregulated hedge funds taking massive short positions would not have been possible.

No one should have confidence in the markets until the uptick rule is restored and the SEC begins to vigorously punish naked short selling.


7 posted on 05/08/2010 1:04:20 PM PDT by Zebra
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To: MiltonFriedmanFan
Great real world example for Obama to harp on just in time for his financial reform legislation.

the same hedge fund short sellers were behind the financial crash of 2008 that paved the way for Obama's election to the presidency.

Nothing to see here, move along....

8 posted on 05/08/2010 1:07:51 PM PDT by null and void (We are now in day 471 of our national holiday from reality. - 0bama really isn't one of US.)
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To: mojitojoe
Seems kinda dumb to be engaged in manipulation the same time the boys and girls in Washington are working on regulation of the industry. I would suspect the trading programs are at fault..
9 posted on 05/08/2010 1:10:18 PM PDT by montanajoe
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To: mojitojoe
"the scam that elected Barack Obama, warns that the same hedge fund short sellers were behind the financial crash of 2008 that paved the way for Obama's election to the presidency."

George Soros? Russians?

10 posted on 05/08/2010 1:10:26 PM PDT by ETL (ALL (most?) of the Obama-commie connections at my FR Home page: http://www.freerepublic.com/~etl/)
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[former US Treasury secretary Hank] Paulson claims Russia tried to foment Fannie-Freddie crisis

Financial Times ^ | Published: January 29 2010 21:06 | By Krishna Guha in Washington

Russia proposed to China that the two nations should sell Fannie Mae and Freddie Mac bonds in 2008 to force the US government to bail out the giant mortgage-finance companies, former US Treasury secretary Hank Paulson has claimed.

The allegation is in his memoir On the Brink in which he also suggests that Alistair Darling, the UK chancellor, blocked a rescue takeover of Lehman Brothers by Barclays Bank when he refused to support special treatment by UK regulators.

“Russian officials had made a top-level approach to the Chinese, suggesting that together they might sell big chunks of their GSE holdings to force the US to use its emergency authorities to prop up these companies,” he said.

Fannie and Freddie are known as GSEs or government sponsored enterprises.

“The Chinese had declined to go along with the disruptive scheme, but the report was deeply troubling,” he said. A senior Russian official told the Financial Times that he could not comment on the allegation.

Separately, Mr Paulson makes it clear that he believes that Mr Darling prevented a takeover of Lehman by Barclays out of fear that it would endanger the UK bank.

Mr Paulson said that Mr Darling telephoned him on Friday September 12 – as the US authorities were scrambling to find a buyer for Lehman – to express concern about a possible Barclays deal. Mr Paulson said that he did not realise at the time that this was a “clear warning”.

(Excerpt) Read more at ft.com ...

11 posted on 05/08/2010 1:11:30 PM PDT by ETL (ALL (most?) of the Obama-commie connections at my FR Home page: http://www.freerepublic.com/~etl/)
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To: mojitojoe

The innumeracy of the media has been showing for the past 48 hrs as they try to sell the explanation of the “fat fingered” trader who allegedly hit B (signifying billions) instead of M (signifying millions). 12 seconds of research would tell you that in total there are about 2.8B shares of P&G, and that recent trading volumes would be between 11-17M shares a day. A single trade of a billion shares would be essentially impossible, no single entity or even alliance of investors has that quantity to buy or sell.


12 posted on 05/08/2010 1:16:41 PM PDT by Wally_Kalbacken
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To: mojitojoe

Can’t discount that the Commie Rat party was behind this, creating a crisis they could deal with by new legislation that fits their agenda nicely. I do NOT like the smell of this. . . to convenient to the financial reform debate.


13 posted on 05/08/2010 1:17:28 PM PDT by RatRipper (I'll ride a turtle to work every day before I buy anything from Government Motors.)
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To: Clintonfatigued
http://justpiper.com/2010/05/dems-clean-up-wall-st/
14 posted on 05/08/2010 1:20:07 PM PDT by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Filio et Spirito Sancto.)
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To: mojitojoe

This makes more sense to me than the fat finger excuse so eagerly reported by the lapdog media.

Some days I think that Wall Street reporters are the most naive of the pack.


15 posted on 05/08/2010 1:21:15 PM PDT by freespirited (There are a lot of bad Republicans but there are no good Democrats.--Ann Coulter)
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To: Zebra
The uptick rule was productive when trading was done in eighths, but with current sub-penny trading the uptick rule is essentially worthless. You can never get enough of a trade-to-trade change with the current high frequency trading to make the uptick rule work.
16 posted on 05/08/2010 1:21:40 PM PDT by mike70
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To: Wally_Kalbacken
First they tried to blame P&G, then Citi, then the fat finger. It's been 3 days now, they don't know who did it and never will. If they do know they aren't going to tell.

Photobucket

17 posted on 05/08/2010 1:26:43 PM PDT by mojitojoe (banking institutions are more dangerous to our liberties than standing armies. Thomas Jefferson)
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To: montanajoe

Not if it was a test run to shake market confidence in preparation for Obama’s 401k grab.


18 posted on 05/08/2010 1:52:30 PM PDT by ebshumidors ( Marksmanship and YOUR heritage http://www.appleseedinfo.org)
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To: mike70

I agree that the decimal system obviates the old methodology. That said, an algorithm that addresses the new trading methodologies could suffice. I believe that such a proposal has been advanced and may already be out for public comment.

Until a reinstatement of a mechanism that impedes self-directed and unbraked short short selling, the markets will continue to be gamed with impunity by hedge fund gang-shorting.


19 posted on 05/08/2010 2:22:29 PM PDT by Zebra
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To: mojitojoe
Yep, remember, McCain was up in the polls until they did the same thing in September of 2008

True but that's not what sank McCain. He freaked and lost his cool--made a fool of himself right before a crucial debate. McCain took the bait and paid the price.

20 posted on 05/08/2010 5:57:27 PM PDT by hinckley buzzard
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To: mojitojoe
[Yep, remember, McCain was up in the polls until they did the same thing in September of 2008.]
 
All McWeevil had to do to counter that was go after Obama National Chairwoman Penny Priztker like a Bulldog...  but he didn't.   Why not?
 
Instead of a Bulldog, all the GOP had in the race was a toothless pedigreed RINO-Poodle....

21 posted on 05/09/2010 8:49:11 AM PDT by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
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To: mojitojoe
Needless to say, when a financial transaction valued at multiple billions of dollars takes place the associated business process requires multiple authorizations.

The whole "fat finger" and "typing 'b' rather than 'm'" excuses are simply insults to our collective intelligence.

Then again, we did collectively elect Obama, so maybe I'm overestimating our collective IQ(?)

22 posted on 05/09/2010 9:25:18 AM PDT by The Duke
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To: mojitojoe

I am glad you posted this. I was doing some research on a business and came across a blog with this information. We already know George Soros purchased PetroBras stock before it was made public Obama would give them billions for offshore drilling.

During Bush’s term Halliburtion was practically destroyed by George soros and moveon.org. The stocks fell, Soros purchased. He purchased stocks from a company he continually spoke against.

Now Obama awards Halliburton a no bid contract that could be worth 2.77 billion. Now that Soros owns stock they are all of sudden trustworthy.

http://www.businessweek.com/news/2010-05-06/kbr-to-get-no-bid-army-work-as-u-s-alleges-kickbacks-update1-.html

Soros funds any dem liberal election, Obama gives him the headsup where taxpayer money is going to buy stocks. Under this relationship, Soros gains even though he will shell out millions to Obama’s thugs and party. Anyone who will move Soros closer to controlling World Banking.

OBAMA IS MOVING AS MUCH MONEY AS HE CAN TO HIS COMMUNIST THUGS!


23 posted on 05/09/2010 4:41:23 PM PDT by OafOfOffice (W.C:Socialism:Philosophy of failure,creed of ignorance,gospel of envy,the equal sharing of misery)
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