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Thread: The Economist: It Appears Market Conspiracy Theorists Were Right

  1. #1

    The Economist: It Appears Market Conspiracy Theorists Were Right

    https://www.zerohedge.com/news/2018-...sts-were-right

    Three new recently published scientific papers seem to confirm what many have claimed for years: the "efficient markets" are not only inefficient - from an informational standpoint - they are also badly rigged. Of the three papers, the Economist reports, one argues that well-connected insiders profited even from the financial crisis, while the other two go so far as suggesting the entire share-trading system is rigged.

    Unlike conventional insider trading cases - which traditionally require fortuitous tip-offs and extensive, expensive investigations, involving the examination of complex evidence from phone calls, e-mails or informants wired with recorders - the papers make imaginative use of pattern analysis from data to find that insider trading is probably pervasive, according to the Economist.

    The approach reflects a new way of analyzing conduct in the financial markets. It also raises questions about how to treat behaviour if it is systemic rather than limited to the occasional rogue trader.

    The first paper starts from the private meetings American government officials held during the crisis with financial institutions. As discussed here years ago, what was not made public at the time were critical details about the infamous TARP program (which incidentally was created and administrated by current Minneapolis Fed president Neel Kashkari who paradoxically rages every day against bailouts of Too Big To Fail banks), notably how much money would be involved and how it would be allocated. This mattered hugely as the very survival of some institutions was at stake; in the end, hundreds of billions of dollars were pledged. Knowing the structure and scope of the bail-out in advance would have been a vitally important piece of information for investors during this period.

    The paper examines conduct at 497 financial institutions between 2005 and 2011, paying particular attention to individuals who had previously worked in the federal government, in institutions including the Federal Reserve. In the two years prior to the TARP, these people’s trading gave no evidence of unusual insight. But in the nine months after the TARP was announced, they achieved particularly good results. The paper concludes that “politically connected insiders had a significant information advantage during the crisis and traded to exploit this advantage.”

    Almost as if the Fed was working covertly with Wall Street to make insiders richer, at the expense of the middle class...

    ...
    Full article on link.
    1776 > 1984

    The FAILURE of the United States Government to operate and maintian an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    You are Ron Paul's Media!

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.



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  3. #2
    Efficient market hypothesis requires insider trading.
    Truth forever on the scaffold, Wrong forever on the throne,--
    Yet that scaffold sways the future, and, behind the dim unknown,
    Standeth God within the shadow, keeping watch above his own.
    ‫‬‫‬

  4. #3
    Quote Originally Posted by DamianTV View Post
    https://www.zerohedge.com/news/2018-...sts-were-right

    Almost as if the Fed was working covertly with Wall Street to make insiders richer, at the expense of the middle class...
    Full article on link.
    TARP was done by Congress and administered by the US Treasury and Henry Paulson, not the Fed. https://www.investopedia.com/terms/t...ogram-tarp.asp

    Global credit markets came to a near standstill in September 2008, as several major financial institutions, such as Fannie Mae, Freddie Mac, and American International Group (AIG), experienced severe financial problems, and as Lehman Brothers went bankrupt. Goldman Sachs and Morgan Stanley changed their charters to become commercial banks, in an attempt to stabilize their capital situations. To prevent further fail in the economy, the Troubled Asset Relief Program (TARP) was initiated.

    TARP was signed into law by President George W. Bush on October 3, 2008 with the passage of the Emergency Economic Stabilization Act. The program was pioneered by Treasury Secretary Henry Paulson in a bid to address the subprime mortgage crisis which was spiraling out of control. It was initially created to increase the liquidity of the secondary mortgage markets by purchasing the illiquid MBS, and through that, reducing the potential losses of the institutions that owned them. Later, it was modified slightly to allow the government to buy equity stakes in banks and other financial institutions. TARP initially gave the Treasury purchasing power of $700 billion to buy illiquid mortgage-backed securities (MBS) and other assets from key institutions in an attempt to restore liquidity to the money markets. The Dodd-Frank Wall Street Reform and Consumer Protection Act (simply referred to as Dodd-Frank) later reduced the $700 billion authorization to $475 billion.
    The Fed announces any moves they make ahead of time so markets are not shocked. They know (along with everybody else) what the Fed is up to.
    Last edited by Zippyjuan; 02-11-2018 at 05:09 PM.
    One thing we can say about Trump: Least Boring President Ever.

    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    “People want to believe that something is the biggest and the greatest and the most spectacular,” Trump wrote, or at least his ghostwriter did. “I call it truthful hyperbole. It’s an innocent form of exaggeration – and a very effective form of promotion.”

    I am Zippy and I approve of this post. But you don't have to.

  5. #4
    Quote Originally Posted by Zippyjuan View Post
    TARP was done by Congress and administered by the US Treasury, not the Fed. https://www.investopedia.com/terms/t...ogram-tarp.asp

    The Fed announces any moves they make ahead of time so markets are not shocked. They know (along with everybody else) what the Fed is up to.
    So everything is awesome and its not a Systemic Problem?
    1776 > 1984

    The FAILURE of the United States Government to operate and maintian an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    You are Ron Paul's Media!

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.

  6. #5
    Quote Originally Posted by axiomata View Post
    Efficient market hypothesis requires insider trading.
    Insider trading in a private company is not the same as insider trading by the people in (bed with) government who rig the markets.
    "He's talkin' to his gut like it's a person!!" -me
    "dumpster diving isn't professional." - angelatc


    "Each of us must choose which course of action we should take: education, conventional political action, or even peaceful civil disobedience to bring about necessary changes. But let it not be said that we did nothing." - Ron Paul

    "Paul said "the wave of the future" is a coalition of anti-authoritarian progressive Democrats and libertarian Republicans in Congress opposed to domestic surveillance, opposed to starting new wars and in favor of ending the so-called War on Drugs."

  7. #6
    Quote Originally Posted by DamianTV View Post
    So everything is awesome and its not a Systemic Problem?
    Markets aren't perfect- nothing is. The Fed only controls interest rates- not what people do with their money.
    One thing we can say about Trump: Least Boring President Ever.

    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    “People want to believe that something is the biggest and the greatest and the most spectacular,” Trump wrote, or at least his ghostwriter did. “I call it truthful hyperbole. It’s an innocent form of exaggeration – and a very effective form of promotion.”

    I am Zippy and I approve of this post. But you don't have to.

  8. #7
    Quote Originally Posted by Zippyjuan View Post
    Markets aren't perfect- nothing is. The Fed only controls interest rates- not what people do with their money.
    More pro or in defense of Federal Reserve Bank rhetoric. As usual, you are always in direct contradiction with everything Ron Paul has to say on Economics. Nice red bar.
    1776 > 1984

    The FAILURE of the United States Government to operate and maintian an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    You are Ron Paul's Media!

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.

  9. #8
    Quote Originally Posted by DamianTV View Post
    More pro or in defense of Federal Reserve Bank rhetoric. As usual, you are always in direct contradiction with everything Ron Paul has to say on Economics. Nice red bar.
    Do you agree with Ron Paul on every single issue? I don't agree with anybody on every single issue.
    One thing we can say about Trump: Least Boring President Ever.

    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    “People want to believe that something is the biggest and the greatest and the most spectacular,” Trump wrote, or at least his ghostwriter did. “I call it truthful hyperbole. It’s an innocent form of exaggeration – and a very effective form of promotion.”

    I am Zippy and I approve of this post. But you don't have to.



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  11. #9
    Quote Originally Posted by Zippyjuan View Post
    Do you agree with Ron Paul on every single issue? I don't agree with anybody on every single issue.
    Are you sure? Because I've never once seen you disagree even slightly with Janet Yellin.
    Quote Originally Posted by Swordsmyth View Post
    Ron is wrong...
    Quote Originally Posted by Swordsmyth View Post
    Amash is wrong...

  12. #10
    Quote Originally Posted by Zippyjuan View Post
    Do you agree with Ron Paul on every single issue? I don't agree with anybody on every single issue.
    Quote Originally Posted by acptulsa View Post
    Are you sure? Because I've never once seen you disagree even slightly with Janet Yellin.
    ^^^THIS^^^

    No disagreements with Alan Greenspan either. Or Goldman Sachs. Probably even Bernie Madoff who madoff with a lot of peoples money and was only one of few that were ever caught an prosecuted.

    Zippy, it is NOT just about Ron Paul, but the entire Keynsian Economic System you fully support and embrace and its importance to the foundation of liberty in general. Keynsian Economics != Liberty or true Libertarian foundations.

    It is obvious you do NOT support Sound / Honest Money, which either indicates you are truly delusional, or are directly profiting from the current system at our expense.
    Last edited by DamianTV; 02-11-2018 at 07:14 PM.
    1776 > 1984

    The FAILURE of the United States Government to operate and maintian an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    You are Ron Paul's Media!

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.

  13. #11
    Quote Originally Posted by Zippyjuan View Post
    TARP was done by Congress and administered by the US Treasury and Henry Paulson, not the Fed. https://www.investopedia.com/terms/t...ogram-tarp.asp
    .
    https://en.wikipedia.org/wiki/Neel_Kashkari

    Neel Tushar Kashkari[1] (born July 30, 1973) is an Indian American banker and politician who is President of the Federal Reserve Bank of Minneapolis. As interim Assistant Secretary of the Treasury for Financial Stability from October 2008 to May 2009, he oversaw the Troubled Asset Relief Program (TARP) that was a major component of the U.S. government's response to the financial crisis of 2007–08. A Republican, he unsuccessfully ran for Governor of California in the 2014 election.
    * Enforce Border Security – America should be guarding her own borders and enforcing her own laws instead of policing the world and implementing UN mandates.

    * No Amnesty - The Obama Administration’s endorsement of so-called “Comprehensive Immigration Reform,” granting amnesty to millions of illegal immigrants, will only encourage more law-breaking.

    * Abolish the Welfare State – Taxpayers cannot continue to pay the high costs to sustain this powerful incentive for illegal immigration. As Milton Friedman famously said, you can’t have open borders and a welfare state.

    * End Birthright Citizenship – As long as illegal immigrants know their children born here will be granted U.S. citizenship, we’ll never be able to control our immigration problem.




    Reprinted from http://www.ronpaul2012.com/the-issues/immigration/ [Nov. 29, 2011]

  14. #12
    Quote Originally Posted by Zippyjuan View Post
    Markets aren't perfect- nothing is. The Fed only controls interest rates- not what people do with their money.
    LOL @ "only." Interest rates determine what people do with their money
    * Enforce Border Security – America should be guarding her own borders and enforcing her own laws instead of policing the world and implementing UN mandates.

    * No Amnesty - The Obama Administration’s endorsement of so-called “Comprehensive Immigration Reform,” granting amnesty to millions of illegal immigrants, will only encourage more law-breaking.

    * Abolish the Welfare State – Taxpayers cannot continue to pay the high costs to sustain this powerful incentive for illegal immigration. As Milton Friedman famously said, you can’t have open borders and a welfare state.

    * End Birthright Citizenship – As long as illegal immigrants know their children born here will be granted U.S. citizenship, we’ll never be able to control our immigration problem.




    Reprinted from http://www.ronpaul2012.com/the-issues/immigration/ [Nov. 29, 2011]

  15. #13
    Quote Originally Posted by acptulsa View Post
    Are you sure? Because I've never once seen you disagree even slightly with Janet Yellin.
    Zippy is here to watch. And report.

  16. #14
    Quote Originally Posted by angelatc View Post
    Thank you for the information (noting that he was working for the Treasury at the time- not the Fed).
    One thing we can say about Trump: Least Boring President Ever.

    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    “People want to believe that something is the biggest and the greatest and the most spectacular,” Trump wrote, or at least his ghostwriter did. “I call it truthful hyperbole. It’s an innocent form of exaggeration – and a very effective form of promotion.”

    I am Zippy and I approve of this post. But you don't have to.

  17. #15
    Quote Originally Posted by Zippyjuan View Post
    Thank you for the information (noting that he was working for the Treasury at the time- not the Fed).
    Thank you for underscoring the key difference. Nobody would be able to understand anything without this important tidbit.

  18. #16
    Quote Originally Posted by Zippyjuan View Post
    Thank you for the information (noting that he was working for the Treasury at the time- not the Fed).
    And thank you for cluttering up this thread with obfuscation intended to mislead people into the mistaken belief that the government and the biggest bankers are not snugly in bed together, and pretending you can separate them without aid of a crowbar.
    Quote Originally Posted by Swordsmyth View Post
    Ron is wrong...
    Quote Originally Posted by Swordsmyth View Post
    Amash is wrong...



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  20. #17
    Quote Originally Posted by DamianTV View Post
    ^^^THIS^^^

    No disagreements with Alan Greenspan either. Or Goldman Sachs. Probably even Bernie Madoff who madoff with a lot of peoples money and was only one of few that were ever caught an prosecuted.

    Zippy, it is NOT just about Ron Paul, but the entire Keynsian Economic System you fully support and embrace and its importance to the foundation of liberty in general. Keynsian Economics != Liberty or true Libertarian foundations.

    It is obvious you do NOT support Sound / Honest Money, which either indicates you are truly delusional, or are directly profiting from the current system at our expense.

    This

    ...
    Quote Originally Posted by TheCount View Post
    Drudge is a traitor to the Leader and the Revolution.



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    The Federalist Papers, No. 15:

    Except as to the rule of appointment, the United States have an indefinite discretion to make requisitions for men and money; but they have no authority to raise either by regulations extending to the individual citizens of America.

  21. #18
    Related:

    Ron Paul: Economic progress under Trump is an illusion, crash coming.
    http://www.ronpaulforums.com/showthr...n-crash-coming



    Thank @uncharted for this vid...
    1776 > 1984

    The FAILURE of the United States Government to operate and maintian an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    You are Ron Paul's Media!

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.

  22. #19
    Since the Economist is the Rothschild's rag, and the rigging is broadly at their behest, if their own publication is exposing rigging then there's a big reason for it and it's probably not for a good reason. Well, unless the bottom falling out of the markets is a good reason. As I documented in the Crash thread, the markets are due for a major correction back to reality level valuations and suddenly "exposing" the rigging is a good cover story for why. Nothing reported is ever the real reason for economic changes. They're always cover stories.
    "Let it not be said that we did nothing." - Ron Paul

    The entire internet is the domain of paid shills and bots. If you don't know this by now....

    Israel, under control of the Crown and, ultimately, the Vatican, own the USA. If you don't know this by now....

    Talk to people about liberty. You won't find it on websites, you won't find it in politicians.

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