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More Inside Data Leakage By The Fed?
Harley Bassman, who used to run Merrill's successful RateLab and is now a prop trader, has sent the following note to clients. Note the bolded text: "The market has become dispeptic about the Payroll event. It is unclear if the FOMC is the BIG event (irrelevant of the data) or do the core inputs matter more. In a nutshell, will tomorrow's data shed any light on the next FOMC ? Last week the options market did now know what to think about QE2. That has all changed....or at least a few large customers have changed our collective minds. Massive option selling has reduced the cost of risk by over 12% in in two days. At least a few customers "know the number" of the FED." Our question: when, if ever, will the market become a level playing field, where everyone acts on the same information? How long will such wholesale approved and encouraged insider trading be permitted for the select few? And, lastly, when will the world rid itself of the Fed once and for all?
We don't even care what, if anything, Pimco or whoever it is that gets this first look does with the information. After all these people at the very top, are now just merely just trading with each other. Basically they have all signed "big boy" letters with each other, confirming they all have non-public information originating from Ben Bernanke himself. But this is precisely why nobody else, and here we mean the actual investing public, wants to be part of the market: people know they have no chance to make money when every rule in the game is geared against them, and when the entire system is preset to steal every last penny of the capital at risk.
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But but but...But Tyler! How are they supposed to manage the economy if they can't see into the future?
Exactly. It's time machines, not information leaks. I've seen this on the scify channel.
Anyone know when my time machine will be fixed?
The Fed is Jew Talmudic...nothing more nor nothing less...
ever since Warburg came to NY from Germany:
Although a major factor in German finance, after frequent business trips to New York, Warburg settled there in 1902 as a partner in Kuhn, Loeb & Company where the influential Jacob Schiff, his wife's brother-in-law, was senior partner. Warburg remained a partner in the family firm in Hamburg, but he became a naturalized American citizen in 1911. He was a member of Temple Emanu-El in New York City.[5][6]
Paul Warburg at the 1st Pan-American Financial Conference, Washington D.C., 1915.
Warburg was elected a director of Wells Fargo & Company in February 1910. He resigned in September 1914 following his appointment to the Federal Reserve Board, and Jacob Schiff was elected to his seat on the Wells Fargo board.[7]
Paul Warburg became known as a persuasive advocate of central banking in America, in 1907 publishing the pamphlets "Defects and Needs of Our Banking System" and "A Plan for A Modified Central Bank". His efforts were successful in 1913 with the founding of the Federal Reserve System. He was appointed a member of the first Federal Reserve Board by President Woodrow Wilson, serving until 1918.
In 1919 he founded and became first chairman of the American Acceptance Council. He organized and became the first chairman of the International Acceptance Bank of New York in 1921. International Acceptance was acquired by the Bank of the Manhattan Company in 1929, with Warburg becoming chairman of the combined organization.
http://iamthewitness.com/books/Eustace%20Mullins%20The%20Secrets%20of%20...
The Fed will disappear only after the non-Jewish "Goyim" wake up to the SCAMS and RIPOFFS known as Babylonian TALMUDIC JEWRY.
Quibble all you like about curves, supply and demand, yields, employment, offerings, etc. but at the end of times...it is IDIOT JEW PAGAN BABYLONIA -- there really is no other sound explanation. Warburg and Schiff funded the Bolshevik takeovers of Russia, Hungary and Germany during and after WWI.... as per the Protocols of the Elders of Zion...
http://iamthewitness.com/Protocols-of-Zion.htm
Take a deep breath and read it.... and remember to say out loud...
Götterdämmerung!!! -- for you and yours... ; )"His opposite number, Paul Warburg, believed that
every question raised by the group demanded, not merely an answer, but a
lecture. He rarely lost an opportunity to give the members a long discourse
designed to impress them with the extent of his knowledge of banking. This
was resented by the others, and often drew barbed remarks from Aldrich.
The natural diplomacy of Henry P. Davison proved to be the catalyst which
kept them at their work. Warburg’s thick alien accent grated on them, and
constantly reminded them that they had to accept his presence if a central
bank plan was to be devised which would guarantee them their future profits.
Warburg made little effort to smooth over their prejudices, and
contested them on every possible occasion on technical banking questions,
which he considered his private preserve.
"In all conspiracies there must be great secrecy."5
The "monetary reform" plan prepared at Jekyll Island was to be presented
to Congress as the completed work of the National Monetary Commission. It
was imperative that the real authors of the bill remain hidden. So great was
popular resentment against bankers since the Panic of 1907 that no
Congressman would dare to vote for a bill bearing the Wall Street taint, no
matter who had contributed to his campaign expenses. The Jekyll Island
plan was a central bank plan, and in this country there was a long tradition
of struggle against inflicting a central bank on the American people. It had
begun with Thomas Jefferson’s fight against Alexander Hamilton’s scheme
for the First Bank of the United States, backed by James Rothschild. It had
continued with President Andrew Jackson’s successful war against
Alexander Hamilton’s scheme for the Second Bank of the United States, in
which Nicholas Biddle was acting as the agent for James Rothschild of Paris.
The result of that struggle was the creation of the Independent Sub-Treasury
System, which supposedly had served to keep the funds of the United States
out of the hands of the financiers. A study of the panics of 1873, 1893, and
1907 indicates that these panics were the result of the international bankers’
operations in London. The public was demanding in 1908 that Congress
enact legislation to prevent the recurrence of artificially induced money
panics. Such monetary reform now seemed inevitable. It was to head off and
control such reform that the National Monetary Commission had been set up
with Nelson Aldrich at its head, since he was majority leader of the Senate.
"
Not that I disbelieve information 'leaking' out, but I find it interesting that there hasn't been an occasion where greed-fueled interest hasn't exposed a full-blown incident. To be specific, someone asking for payment in order to provide the information, and the whole mess being exposed in some way.
Are all these guys just *that* good at keeping their mouths collectively shut? Just wondering here.
Have you read this?
Here Is How The World's Biggest Bond Funds (And Others, Just Not You) Get Advance Notice Of What The Fed Is About To Do
I believe you, just saying it must be a tight operation that we've never seen an actual number out before it is officially.
So the "mess exposed" scenario to me would be - FED number gets leaked, and EVERYONE knows what it is, big scandal, etc..
Right now as you've outlined in your article, we have second-hand inference that this is going on (and I believe it is), but still -- the numbers never hit the internet, they stay in the walnut-paneled and cigar-infused rooms of power to be used privately.
They run a tight ship, then. Like Gekko says in "Wall Street" - "You're either inside or you are outside. Got it?"
Postscript:
I'm *not* trying to be cheeky here, I believe these leaks occur. I *would* like to see the whole thing exposed on the national level. It *does* bother me that nothing has happened where someone blabbed in the wrong ear and exposes the whole sordid mess.
How is it going to be exposed? Who in their right mind would try to take it national? What MSM news outlet would cover it? It's risky to ones health to target powerful men and try to not only take their livelihood but also possibly land them in jail. Thank God for the Internet and the fact the info can get out even if the average Joe won't hear about it.
The last part of your post nails it. The internet is the perfect medium to air it out. You are absolutely correct that the mainstream media outlets wouldn't touch it with a advertiser-sponsored pole.
It's a lot easier to kill "some guy on the internet" without drawing undue attention, than it is to whack someone in the MSM, even if they're not one of the high visibility talking heads or pundits.
Most people who say they wouldn't kill someone if they knew they'd (1) get to hang on to millions or billions of dollars and (2) were virtually guaranteed to get away with it, are lying through their teeth. I don't think it happens that often, but it certainly can happen.
Easy to get away with it when you have a 7 figure budget.
the bootlicking talking heads are afraid to tell the truth, even if they stopped babbling to recognize it, because they've risen to their positions by saying "yes, sir.".
to my surprise, Money Rocks is the exception to the rule.
"...even if the average Joe won't hear about it."
When ZeroHedge speaks, I listen (TM)
Joe Sixpack
"...even if the average Joe won't hear about it."
When ZeroHedge speaks, I listen (TM)
Joe Sixpack
Ummm... If there was insider proof, a high powered laywer and Judge who's lost money because of this can draw a very large crowd.
insider trading is okay if its "for the good of the people".
...wish i was one of those people.
If this scenario would be the case, that it leaked and "everybody" knew the number, could they not just flip the coin and change the numbers when released? It's not like they're gonna get audited, anyways...
Common Timmy, you're not paying attention. Couple of weeks ago, SPX px was so obvious prior to the data you could tell exactly the minute people were getting the data! :)
+1
how hard is it to investigate this? not very. its become more and more laughingly obvious every single year.
I don't mean to disrespect some of the professionals that frequent this excellent site, but these have always been the rules for every trader/investor who is not directly connected to a firm or the floor. Now, it just seems that some of the inside guys are getting it put to them. Fine. Good even. Eat what you kill. Aren't those the rules? Whoever's good enough, will still be around.
That about sums it up in a nice neat package!!!
These may be the time honored rules of the Street, but the current crop of kleptomaniacs have taken financial thievery to unbelievable records.
markets exist to take our money, not the other way around.
HOWEVER, the Wall Street Industrial Complex has done it to themselves this time as they stopped thinking 'long-term'.
Wall Street used to 'sell Levi jeans' to all those who would rush in for the quick and easy buck, and allow everyone else to duke it out. now they themselves rush in for the quick buck (gotta get that bonus!),
...and therefore John Q. Public rushes into gold.
EMH
EMP
All these little probing questions mean that Mr. Bassman needs to be "relocated" to a "reeducation center" for "attitude reconstruction" in combination with "pharmaceutical softening intervention."
In short, he'll be visiting Jimmy.
And QE? Oh come on, I said two months ago--and on this site, I believe--that it will be $7 trillion. Some real "expert" announced that on his site YESTERDAY. Duh.
Oh, and by the way, $5 trillion is on the way for early spring.
And, oh, by the way, none of this includes "stealth monetization."
Stay tuned!
And oh, by the way, BLS college-educated unemployment still at 4.6%. Liquidation proceeds unimpeded until that figure reaches 20%.
And then? And then, my dears, Ulyanov arrives from Switzerland in a sealed train.
+10 Plutonium grade post, sir.
Thanks ducky. I know I'm way cool, but did YOU know that the U.S. has already forgiven home mortgage debt, and that everything it's doing now--from HAMP denials through robosigning--is simply designed to hide bad debt on bank books. It's not foreclosing to get some return/chargeoffs. That's 0, now and forever.
No, the order for phony affidavits came right from the top. Wait til the depositions and document subpoenas reveal this.
We're totally South Americanized. But will President-for-Life Petraeus really give us the National Unity Government we need (no civil liberties, of course)?
"....Ulyanov arrives from Switzerland in a sealed train." No, that's when Trotsky gets hit in the head with an ice ax, and Stalin gets poisoned by his security chief, just before he himself is shot for treason. Politics in dictatorships is a lot more colorful.
I don't mean to disrespect some of the professionals that frequent this excellent site, but these have always been the rules for every trader/investor who is not directly connected to a firm or the floor. Now, it just seems that some of the inside guys are getting it put to them. Fine. Good even. Eat what you kill. Aren't those the rules? Whoever's good enough, will still be around.
2:15 here! let's see some ramp, boys!
You need to check your clock. The ramp starts at 1:55 now.
"Our question: when, if ever, will the market become a level playing field, where everyone acts on the same information? How long will such wholesale approved and encouraged insider trading be permitted for the select few? And, lastly, when will the world rid itself of the Fed once and for all"
Answers: 1) Never, it's a pipe dream, so don't waste your time or energy wishing otherwise. Investing in public securities markets is, and always will be, a FAILING investment strategy for anyone who isn't on the inside. But the good news is we can STARVE THE INSIDERS by permanently exiting the public securities marketplace. Instead, invest in yourself, or a business that you directly control.
2) Boycott the public securities markets, and this problem will solve itself.
3) Boycott the banks. Pull all your money out. See what happens to the Fed then.
WTF! Are you saying we should put our money, energy and time into productive activities?
Who let you in?
We live in the world of 1984. If a private stockholder of a company knows something, and acts on it, he is guilty, Guilty, GUILTY throw him in prison! He, of course, did not use force or fraud to make money. Just knowledge.
If a public official, who is in control of something like a printing press, uses his knowledge, or passes it to his buddies who use it, silence. They, of course, are using force. They don't call it "fiat" currency because people use it out of choice.
My question: When has it ever been a level playing field? Never.
Never has, never will be.
So, is now the time to jump on VXX? Or wait for under 16?
I'd hold out for the 10:1 reverse split
good bye Benny, your ass is gone.
good bye Benny, your ass is gone.
I just love it when people try to act smart and use words like dyspeptic and miss spell them. It really adds credence to their analysis.
...use words like dyspeptic and miss spell them.
misspell - What is more embarrassing than to misspell the name of the problem? Just remember that it is mis + spell and that will spell you the worry about spelling "misspell." http://www.yourdictionary.com/library/misspelled.html
Priceless.
Massive Puts?
Massive Calls?
Who is buying? who is selling?
More info please
So translate this for a imbecile like me. I bought some VXX anticipating the end of the POMO and the Labor number. Probably a big mistake, and I'm working on taking it in the shorts. I'd like to get out if this is going to get worse.
So massive option selling of both puts and calls? Only way they would do that if is the FED is basically going to hold the market where it is which would seem to be a bit risky even if that was their intention. If the labor number is going to be terrible and people are front running the news, you would think the option selling would mostly be the sale of calls if they actually know this thing is going down which would actually cause VIX to rise once it tanks.
If they are going to doctor the numbers and tell us the magic unicorn that poos skittles is having babies, then the selling of options would be mostly puts, and I need to just take my medicine and watch the market ramp fun from the sidelines. Any insight into the put/call ratio of all these new sales?
I'll offer a bit of advice on VXX, get out of it. Just take your losses and run. It doesn't follow anything except the gullibility index. You simply cannot know what it is trading. The increase in the shares outstanding has been ridiculous since may. You're just giving it to Goldman as they sell vix futures and collect your money.
It's like the UNG contango idiocy that everyone played last year
Any QE2, stimulus, etc will be nickle and dime stuff. No big OMG! dollar amount. These politicians (and FED guys) are so scared of the political wind they wont risk it. This is political guerrilla warfare (never fight a battle which will determine the outcome of the war). A little here, a little there... "We did do something..." "We are concerned about deficits, thats why the dollar amount is low...". Anybody expecting a big number (all at once) will be disappointed. Look for a bunch of small stuff. A bunch of small stuff pumps the market better too since the HFT's Algo news scanners will get more hits over a period of time.
Stare at your computer screen for 10 years, you won't need inside information, I can out trade anyone, it has taken every bit of ten years watching one instrument day after day year after year.
I am glad we have the Federal Reserve, they keep the markets moving. I need the market to move.
Yeah I'll work on that between now and tomorrow. Thanks.
While we appreciate the gods mingling among the mortals not all us do nothing but look at the screen for 10 years. Sadly some of us are forced to produce real products and services. It would be one hell of a world if we all sat at the office/home and traded all day. One can dream.
Though why even posting I figure if I could out trade anyone and make money in any market I would be living like this guy http://www.youtube.com/watch?v=AkMsSIjQXxo
Opulence, I has it- bitchez ....lol
i just turned over the dirt in the garden, added compost and steer manure and with a grin on my face brought in a brace of carrots and a couple of squash. Another homegrown meal and my energy invested paid of handsomely all year. Dont need to be in business, no need for a "job" and a lot less stress
Are you rich yet?
yes. Because i know and have myself.
sorry harley - there never has been nor ever will be a level playing field....societies are hierarchical and thus is its information.....however, since the intensification of the nazi state in the 1970s the hierarchy has become ever more steep - something which mass murderer bush-43 and bush-44 have guaranteed....
Dear Wiskeyrunner,
With all due respect, that piece of advise for us less edumacated is about as useful as a proctology exam outsourced to Roto Rooter....,
Yakmerchant, its pretty much a crap shoot.
Uncle Benny wakes up with a woodie, pomo, no woodie no pomo.
Hope this helps
Ben has those day scheduled in advance so he can take the blue pill to get the woodie.
<sarc off>
"Our question: when, if ever, will the market become a level playing field, where everyone acts on the same information?"
When monkeys fly out of my butt, when Hell freezes over, when politicians become honest, etc, etc.
It's the nature of the beast.
politicians will not stop lying because they are elected by people who lie to themselves. the politicians reflect the character of their constituents.
dear Tyler,
Why dont we ask the hofjuden. They might know. Better yet, why not skip the middlemen and go directly to hofjuden's masters? That's what I want to know.
I'm not sure, but Benron's bumper sticker reads: You can have my printing press when you pry it from my cold, dead hands.
ha, ha. that made me laugh out loud. perfect!
I look forward to a road trip in the next few years where I will stop at the graves of these people and take a nice piss. It'll take a while but the scenery will be nice.
Hitler was right.
That's why he won WWII!
Can you let me know if share my understanding?
If the FED is going to put 1.5 TR liquidity in the market then people would go for long call options, when no liqudity program then long put options. Assuming, we are talking about covered (not naked) short calls, people obviously expect stock markets to stay at current levels which could indicate a "moderate" QE2 package -> let's say 0.5 TR.