Wall St Bank RAPE of Stock market

Paradigm Intel has recreated this conversation:

Between Wall St Bank CEO and their top trading strategist.

Gerald on floor of NYSE

#1 is CEO

#2 is trading strategist

#2 hello sir, we secure?

#1 yes room has been swept by the top TSCM

What have you got?

#2 Well we can manipulate the market, and

make billions maybe even a trillion in few hours.

#1 isn't that illegal, do we need the lobbyist to

get congress to change some laws?

#2 I think the lawyers can make a defensible

case we didn't break the law, and if we loose

we can rig the fine so our profit is still really huge.

#1 sounds risky, after the sub-prime gold mine

the public is still up in arms but so far unable to

do anything. 

#2 We can hide the entire operation, and run it

from a distance, the SEC certainly can't track it,

maybe NSA could but they won't even look.

If we don't get caught its not illegal.

#1 Yes but I don't want to add any fuel

to the hatred of the Wall St Banks, and

develop enough momentum  where we

couldn't buy off congress. 

#2 Not a problem sir, we can run it

from the black pools outside CONUS,

there is no regulation or over site, and

maybe not even any jurisdictional

authority, and the possibility of denying

SEC any jurisdiction.

#1 How does it work?

#2 Programed trading sir, we know

most of the competitions action points

with in a few points, and once enough

of these levels are broken programed

trading takes over, humans out of the loop.

And the programs will sell everything,

many programed to go short even.

#1 Go Short? Thats where they sell

shares they don't have, right.

#2 Yes sir, but its not limited to shares,

includes options, puts, and futures,

and even options on futures.

The leverage can be huge.

Really really huge.

#1 and the profits also really really

huge?

#2 Yes sir, as I said trillion or more in

just hours, actually min.

And the SEC can't see any of it, they

have no way to trace it, we can blame it

on a glitch. They can't prove otherwise.

#1 So we so to speak just have to tip

the scale, and trigger programmed trading

on the down side, and the computers run it

into the ground? How do we make money on

a disaster?

#2 Well sir we make huge bets the market

will be going down, for every point it goes down

we make millions, depending on the leverage.

At the bottom we quit selling and start buying

and double our money as we ride it back up,

to normal reasonable levels.

#1 not bad, I assume your bonus is in the

hundreds of millions?

#2 yes sir.

#1 DO IT as soon as practicable, when every thing

is set up.

#2 yes sir.

END OF FILE

Second discussion about a week later:

#1 ok is it safe to talk about this now?

Things settled down?

#2 Yes sir, you had the room swept again?

Yes by the Granite Island Group .

We are safe.

#1 well what to hell happened?

#2 Well sir it went to good, in 10 min 

well you saw it drop.

SEC and others stepped in and broke alot

of trades, and just as I said SEC is clueless.

They couldn't trace any of it, and we are pointing

them in the direction of a GLITCH, they seem

to be buying it.

#1 but we made money?

Down $862 billion in less than 20 minutes

#2 yes sir almost a Trillion.

Mostly in the dark pools.

But who would have thought 

they would break trades, that cost us

the second Trillion in profits.

#1 ok how soon can we do it again?

#2 Well sir we think we need some

cover, something big happens we can blame it on.

But they have circuit breakers in for many of the

markets, we are running computer models to 

check out how effective they will be and

how we can circumvent them.

#1 Well not much changed, and it looks

like we can do this again any time we want.

#2 Yes sir the Fibonacci 'sell levels' are known

and 'support /resistance' levels tracked too.

So we can trip it all over again, and let

the computers and programed trading take

it down.  

#1 And SEC can't do a damn thing, or even

see any of it?

#2 Yes sir, it would take an act of congress

and we control them. The SEC did a survey to
determine the cause, HA HA HAAA.

#1 Best billion I ever spent paying congress off.

Later #2.

#2 yes sir.

END OF FILE

Gerald

Series 3 and 7.

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SEC to Blame Traders for Flash Crash 

High-speed trading led to flash crash: survey 

MarketWatch - April H. Lee - ‎Aug 10, 2010‎

More than 80% of advisers said use of computer systems and high-frequency trading contributed to theMay 6 volatility, according to a poll of 380 US retail 

SEC flash crash report to be released in September

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