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From The Mail Box: AIG Goes Parabolic As Repo Desks And Prime Brokers Pull Borrow And Force Short Covering
The "Same Manipulation Different Day" continues, as the powers that be run out of tricks to drive the market higher. Today: a well known and much abused trick to prevent market drops in desperate situations: forced covering in fins. This has culminated with a ridiculous move in AIG in the last 30 minutes of trading. From the mailbox:
"Our PB just sent us a recall notice on our entire AIG position. We had to cover before market close. We received the notification at the day lows. "
And there you have it. From the administration to State Street, from there to the Prime Brokers and various Repo Desks, and from there straight to the market which jumps on a forced cover, which is supposed to indicate that the economy is hot, hot, hot.
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This is just unbelievable. These are severe crimes of finance!
Anyone who shorts after seeing how this casino works over the last 12 months DESERVES to lose every fucking penny he has.
Well yes... but only if you are early to the party
other than "manipulation" what is the reason PB's recall shares? I mean, it seems like it's not right. if they let you short and the position is in the money, how can they force a cover? Is that right? I can understand a margin call, but not a forced recall of shares. Someone in the know please explain.
Yes, the shares you borrowed to short can be recalled anytime without a reason. You are not forced to cover though; only if you (or your broker usually) cannot borrow from another source then you have to close the position and return the shares.
Machine dysfunction voids all plays and pays.
I was watching the old "WallStreet" movie the other night with the StockWatch group zoning in on Charlie Sheens manipulation of BlueStar airline stock. The next day law enforcement was at the brokerage office arresting Sheen.
Must only be in the movies to make us peasants feel safe. In real life the bankstas get to play illegal stock rigging games all day and no one even blinks an eye?????
We are a land full of lawyers but don't worry about the laws, no one is enforcing them.
Our laws are enforced heavily. Just remember for whose benefit they are enforced. (Don't bother looking in a mirror, you won't find him there.)
This could be the sole reason we see shit such as AIG, LEH, and C still listed on this fraud-market. So they can pull the levers in situations like this.
Poor shorters got SHANKED.
Hey, how about that, LEHMQ shot straight up at around 2:30. Who woulda thunk it.
all hail our glorious anti-plunge team. their swan defense shield will always work because the PARTY says so until it doesn't.
breaking news on one of those days in the near future: Game Over.
They want to gun this thing above the next technical barrier, for example SPY 1200, because at that point they can get the algos to keep it going higher on no volume. This is the other end of the card. Propping things up to keep that a possibility through manufactured short squeezes. It will be interesting to see how it all plays out in Asia. That consumer credit number shoots a hole a mile wide in that consumer recovery thesis.
Trust me, it will be painted over with some spin tonight on Kudlow, and then the rally resumes towards 1200 tomorrow.
Seriously, I think we hit 1200 by Friday.
Lots more cracks these days. Time to get off the ice shelf.
No pity. How stupid do you have to be to get your tit caught in a wringer via an AIG lend? I know that wall street in unscrupulous, everyone knows this. Thank you sir, may I have another?:
http://www.youtube.com/watch?v=qdFLPn30dvQ
Can't really brag about total trading over the past year but writing AIG 45 calls has been good. The vol has been absurdly high. however, today is scary.
covered calls hopefully or else you face the same risk.
Foolish shorts. This is not their market to play in. Hasn't it been proven time and time again that when you short the market you are going up against TPTB. I was caught in the famous illegal to short financials back in Sept09. I will never short another stock again. Find another way or find another game!!!!
agree...the shorts will be beaten until morale improves. They must get their heads right.
This is insane. If the government gives one cent to the equity holders the government should be taken down and cleanesed. There is absoultely no value in AIG equity after the taxpayer gets paid back even a fair return for the risk incurred. The government needs to shut this down now.
Civic cleansing.
Fat chance. This baby's going to the moon. They just dropped the criminal investigation of AIG and Casano. Shhhh.....back to sleep.
Nice to receive such info at the days lows, those who were supposed 'forced' later on >3pm got owned!
Outstanding, PPT, outstanding! Get you a case of beer for that one!
FINRA Fines Citigroup $650,000 for Direct Borrow Program Deficiencies
in the first action involving a stock borrow program, cites disclosure and supervisory failures
$650,000 fine after being bailed to the tune of about $250Bn with asset guarantees....
.....change you can believe in.
I think that should be, "Chump change you can believe in."
besides fucking over daytraders on AIG, is there any other benefits to forcing a short squeeze in that stock? Is it even in any indexes like the S&P 500 anymore? I can understand if this were the SPY but a short squeeze in a single piece-of-shit stock like AIG, does it have any widespread value?
Its probably in a number of indexes - cushions the breakdown, provides a bit of an end-of-day recovery to maybe hold off a bigger breakdown tomorrow.
Just a warning shot across the bow....
It wasn't the day traders they were after.
hmm....I guess they weren't using Schwab...kidding.
On what channnel is the analyst providing covering fire with the AIG upgrade?
What you all complaining about, free market capitalism, AIG's upmoves in accordance to market fundamentals, don't you watch CNBC?
Quit shorting. Starve the beast!
This crap has been going on for 13 months.
Learn. Luv. Live.
@Overpowered By Funk
Bravo!!
Gunning AIG keeps the "stupid" money onboard, like hosting American Idol on the canting deck of the Titanic.
Wouldn't AIG be a good short now or soon once the squeeze is over and done with?
Imo AIG will be a quick long next time there is a 100pt drop
Look at the April call volume.
Someone made some money.
Further signs of desperation. I'm backing off of my thesis now that they are trying to create confidence with this rally. It is now so obviously rigged that it is clear they could care less about confidence. We are into naked looting.
Why the F would you be short AIG? that thing is going to at least 68.
BB, the market's main man, is preaching reform of the bankrupt Medicare/SS in Dallas today. His job is to get everybody looking over there while more looting goes down over here.
Kill Shorty continues to be the name of the equity trading game.
Steve Eisman, among others, has been very vocal in his short on AIG (see the recent issue of Grants).
The Man is now making him pay. The government wants the option of floating even more equity in this POS or selling down some of its stock. Either way, the shorts must atone, as Howard Beale might say............
"Big money, big monie!" Stupid PPT...........
Reality is always on the wrong side of the market.
I hate this shit!!!!!!!!! Ahhhh!
Kelis - Caught Out There:
http://www.youtube.com/watch?v=tnukuTwynwYLipstick on a pig.
Mark Beck
Please , Ive heard enough complaining from my fellow shorts. WAH, WAH, WAH!! You guys sound like Johnny Fontaine... What can i do? What can I do? SLAP, SLAP..YOU CAN ACT LIKE A MAN!!!. You know that the stock market has its risks. You know the deal. You know about PPT and Front running, But yet you are always suprised when the market turns around and tears shorts a new asshole. Just think as the Market as the Chariot race in Ben HUR. You have Masala who had the spiked wheels on his wheels. Yes, it was a dirty trick, But it was legal. My point is that the Market is becoming that very same Arena.. No rules, and many are killed, Sort of speak. Might as well get used to it and Act like a man.
Looks like the game is changing
Ah, gotta love the American way! Devoid of morals and ethics. Money has become everyone's God, excuses being "legal".
Is there a legitimate reason this occurred? Anyone? You, there, in the back . . . . Jamie, is it?
Yes there is a reason. Because thats what the Primal forces of nature wanted. Thats why. Dont try to figure out the Primal forces of nature. You will never figure it out.
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http://www.youtube.com/watch?v=snILjFUkk_A&NR=1
I can see Ben singing in the shower