Internet Anthropologist Think Tank: Wall St Bank RAPE of Stock market

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    Saturday, August 14, 2010

    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

    #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.


    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.


    Series 3 and 7.


    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 


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