http://justpiper.com/2010/05/dems-clean-up-wall-st/
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 ...
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."
ping
Need to see these bastards swinging from lightpoles on Wall Street.
I’ll bring the ropes.
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.
Why can’t they track who had the most to gain and freeze those accounts?
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.
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.
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....
George Soros? Russians?
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 ...
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.
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.
http://justpiper.com/2010/05/dems-clean-up-wall-st/
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.
Not if it was a test run to shake market confidence in preparation for Obama’s 401k grab.
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.
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.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.