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Is EVERY Market Rigged?

George Washington's picture




 

CNN reports:

The European Commission raided the offices of Shell, BP and Norway’s Statoil this week as part of an investigation into suspected attempts to manipulate global oil prices spanning more than a decade.

 

None of the companies have been accused of wrongdoing, but the controversy has brought back memories of the Libor rate-rigging scandal that rocked the financial world last year.

 

***

 

A review ordered by the British government last year in the wake of the Libor revelations cited “clear” parallels between the work of the oil-price-reporting agencies and Libor.

 

“[T]hey are both widely used benchmarks that are compiled by private organizations and that are subject to minimal regulation and oversight by regulatory authorities,” the review, led by former financial regulator Martin Wheatley, said in August . “To that extent they are also likely to be vulnerable to similar issues with regards to the motivation and opportunity for manipulation and distortion.”

 

***

 

In a report issued in October, the International Organization of Securities Commissions — an association of regulators — said the ability “to selectively report data on a voluntary basis creates an opportunity for manipulating the commodity market data” submitted to Platts and its competitors.

 

Responding to questions from IOSCO last year, French oil giant Total said the price-reporting agencies, or PRAs, sometimes “do not assure an accurate representation of the market and consequently deform the real price levels paid at every level of the price chain, including by the consumer.” But Total called Platts and its competitors “generally… conscientious and professional.”

 

***

 

“Even small distortions of assessed prices may have a huge impact on the prices of crude oil, refined oil products and biofuels purchases and sales, potentially harming final consumers,” the European Commission said this week.

USA Today notes:

The Commission … said, however, that its probe covers a wide range of oil products — crude oil, biofuels, and refined oil products, which include gasoline, heating oil, petrochemicals and others.

 

***

 

The EU said it has concerns that some companies may have tried to manipulate the pricing process by colluding to report distorted prices and by preventing other companies from submitting their own prices.

 

***

 

Unlike oil futures, which set prices for contracts, the data used in the MOC process is based on the physical sale and purchase of actual shipments of oil and oil products.

 

***

 

According to Statoil, the EU investigation stretches back to 2002, which is when Platts launched its MOC price system in Europe. The suspicion is that some companies may have provided inaccurate information to Platts to affect the oil products’ pricing, presumably for financial gain.

Fox points out:

At issue is whether there was collusion to distort prices of crude, refined oil products and ethanol traded during Platts’ market-on-close (MOC) system – a daily half-hour “window” in which it sets prices.

 

But the European Commission also is examining whether companies were prevented from taking part in the price assessment process.

The Guardian writes:

The commission said the alleged price collusion, which may have been going on since 2002, could have had a “huge impact” on the price of petrol at the pumps “potentially harming final consumers”.

 

Lord Oakeshott, former Liberal Democrat Treasury spokesman, said the alleged rigging of oil prices was “as serious as rigging Libor” – which led to banks being fined hundreds of millions of pounds.

 

He demanded to know why the UK authorities had not taken action earlier and said he would ask questions of the British regulator in Parliament. “Why have we had to wait for Brussels to find out if British oil giants are ripping off British consumers?” he said. “The price of energy ripples right through our economy and really matters to every business and families.”

 

***

 

Shadow energy and climate change secretary Caroline Flint said: “These are very concerning reports, which if true, suggest shocking behaviour in the oil market that should be dealt with strongly.

 

“When the allegations of price fixing in the gas market were made, Labour warned that opaque over-the-counter deals and relying on price reporting agencies left the market vulnerable to abuse.

 

“These latest allegations of price fixing in the oil market raise very similar questions. Consumers need to know that the prices they pay for their energy or petrol are fair, transparent and not being manipulated by traders.”

 

Shadow financial secretary to the Treasury Chris Leslie said: “If oil price fixing has taken place it would be a shocking scandal for our financial markets.

The Telegraph reports:

97 per cent of all we eat, drink, wear or build has spent some time in a diesel lorry,” said a spokesman for FairFuel UK, the lobbyists. “If it is proved, they have been gambling with the very oxygen of our economy.”

 

***

 

Platts – to determine the benchmark price – examines just trades in the final 30 minutes of the trading day. A group of half a dozen analysts gather round a trading screen and decide on the final price. As with much that goes on in the City, it is a surprisingly old-fashioned method, reliant on gentlemanly conduct. Critics say it leaves the market open to abuse, and the price can suddenly spike or fall in the final minutes of the day.

The New York Times notes of agencies like Platt and Argus Media:

Their influence is extensive. Total, the French oil giant, estimated last year that 75 to 80 percent of crude oil and refined product transactions were linked to the prices published by such agencies.

The Observer points out that manipulation of the oil markets has long been an open secret:

Robert Campbell, a former price reporter at another PRA, Argus – he is now a staffer at Thomson Reuters, which also competes with Platts and others on providing energy news and data – said this a few days ago in a little-noticed commentary: “The vulnerability of physical crude price assessments to manipulation is an open secret within the oil industry. The surprise is that it took regulators so long to open a formal probe.”

Reuters reports that the probe may be expanding to the U.S.:

In Washington, the chairman of the Senate energy committee asked the Justice Department to investigate whether alleged price manipulation has boosted fuel prices for U.S. consumers.

 

“Efforts to manipulate the European oil indices, if proven, may have already impacted U.S. consumers and businesses, because of the interrelationships among world oil markets and hedging practices,” Sen. Ron Wyden (D-Ore.), chairman of the Senate Energy and Natural Resources Committee, wrote in a letter to Attorney General Eric H. Holder Jr.

 

Wyden also asked Justice to investigate whether oil market manipulation was taking place in the United States.

Not only are petroleum products a multi-trillion dollar market on their own, but manipulation of petroleum prices would effect virtually every market in the world.

For example, the Cato Institute notes how many industries use oil:

U.S. industries use petroleum to produce the synthetic fiber used in textile mills making carpeting and fabric from polyester and nylon. U.S. tire plants use petroleum to make synthetic rubber. Other U.S. industries use petroleum to produce plastic, drugs, detergent, deodorant, fertilizer, pesticides, paint, eyeglasses, heart valves, crayons, bubble gum and Vaseline.

The India Times reports that:

The price variation in crude oil impacts the sentiments and hence the volatility in stock markets all over the world. The rise in crude oil prices is not good for the global economy. Price rise in crude oil virtually impacts industries and businesses across the board. Higher crude oil prices mean higher energy prices, which can cause a ripple effect on virtually all business aspects that are dependent on energy (directly or indirectly).

The Federal Reserve Bank of San Francisco notes:

When gasoline prices increase, a larger share of households’ budgets is likely to be spent on it, which leaves less to spend on other goods and services. The same goes for businesses whose goods must be shipped from place to place or that use fuel as a major input (such as the airline industry). Higher oil prices tend to make production more expensive for businesses, just as they make it more expensive for households to do the things they normally do.

 

***

 

Oil price increases are generally thought to increase inflation and reduce economic growth.

 

***

 

Oil prices indirectly affect costs such as transportation, manufacturing, and heating. The increase in these costs can in turn affect the prices of a variety of goods and services, as producers may pass production costs on to consumers.

 

***

 

Oil price increases can also stifle the growth of the economy through their effect on the supply and demand for goods other than oil. Increases in oil prices can depress the supply of other goods because they increase the costs of producing them. In economics terminology, high oil prices can shift up the supply curve for the goods and services for which oil is an input.

 

High oil prices also can reduce demand for other goods because they reduce wealth, as well as induce uncertainty about the future (Sill 2007). One way to analyze the effects of higher oil prices is to think about the higher prices as a tax on consumers (Fernald and Trehan 2005).

The Post Carbon Institute notes (via OilPrice.com) that high oil prices raise food prices as well:

The connection between food and oil is systemic, and the prices of both food and fuel have risen and fallen more or less in tandem in recent years (figure 1). Modern agriculture uses oil products to fuel farm machinery, to transport other inputs to the farm, and to transport farm output to the ultimate consumer. Oil is often also used as input in agricultural chemicals. Oil price increases therefore put pressure on all these aspects of commercial food systems.

Figure 1: Evolution of food and fuel prices, 2000 to 2009
Sources: US Energy Information Administration and FAO.

Economists Nouriel Roubini and Setser note that all recessions after 1973 were associated with oil shocks.

Interest Rates Are Manipulated

Unless you live under a rock, you know about the Libor scandal.

For those just now emerging from a coma, here’s a recap:

Derivatives Are Manipulated

The big banks have long manipulated derivatives … a $1,200 Trillion Dollar market.

Indeed, many trillions of dollars of derivatives are being manipulated in the exact same same way that interest rates are fixed: through gamed self-reporting.

Gold and Silver Are Manipulated

The Guardian and Telegraph report that gold and silver prices are “fixed” in the same way as interest rates and derivatives – in daily conference calls by the powers-that-be.

Everything Can Be Manipulated through High-Frequency Trading

Traders with high-tech computers can manipulate stocks, bonds, options, currency and commodities. And see this.

Manipulating Numerous Markets In Myriad Ways

The big banks and other giants manipulate numerous markets in myriad ways, for example:

  • Engaging in mafia-style big-rigging fraud against local governments. See this, this and this
  • Shaving money off of virtually every pension transaction they handled over the course of decades, stealing collectively billions of dollars from pensions worldwide. Details here, here, here, here, here, here, here, here, here, here, here and here
  • Pledging the same mortgage multiple times to different buyers.  See this, this, this, this and this.  This would be like selling your car, and collecting money from 10 different buyers for the same car
  • Pushing investments which they knew were terrible, and then betting against the same investments to make money for themselves. See this, this, this, this and this
  • Engaging in unlawful “Wash Trades” to manipulate asset prices. See this, this and this
  • Participating in various Ponzi schemes. See this, this and this
  • Bribing and bullying ratings agencies to inflate ratings on their risky investments
 

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Mon, 05/20/2013 - 08:51 | 3579780 blindman
blindman's picture

"..at sea one day you'll smell land where there be no land
and on that day Ahab will go to his grave, but he will rise
again within the hour, he will rise and beckon, that all,
all save one shall follow." .... elija (moby dick)

Mon, 05/20/2013 - 07:57 | 3579690 CutOut
CutOut's picture

ZH is being targeted by FedGov spambots & human operatives saturating the comment sections with garbage and disinformation in addition to down voting certain posters.

They are not harmless trolls, they are professional operatives attempting to undermine and discredit ZH via multi nic sock puppets. ('heart' would never do that)

Attacking this post by constant down voting speaks for itself.
Case closed.

Mon, 05/20/2013 - 08:58 | 3579805 CutOut
CutOut's picture

3 shill down votes already.
Nice one

---------------------------------
ZH is being targeted by FedGov spambots & human operatives saturating the comment sections with garbage and disinformation in addition to down voting certain posters.

They are not harmless trolls, they are professional operatives attempting to undermine and discredit ZH via multi nic sock puppets. ('heart' would never do that)

Attacking this post by constant down voting speaks for itself.
Case closed.
----------------------------------

Mon, 05/20/2013 - 07:49 | 3579682 ableman28
ableman28's picture

Manipulation in this market is remarkably easy to demonstrate by simply comparing the price of MWI crude to the cost of a gallon of gasoliine.  At one point, around 2000, oil was approximately $8.00 per barrel and the average national price of gasoline was approximately $2.00.  When MWI has hovered around $100 the national average price of a gallon of gasoline has hovered around $4.00.

Every single market, every one, is manipulated to a greater or lesser extent (mostly greater), by the largest participants.......and once the ability to manipulate the markets gains any traction it creates a trend line toward ever greater manipulation.

Mon, 05/20/2013 - 07:51 | 3579684 Bearwagon
Bearwagon's picture

"Every single market, every one, [...]" - is dead and gone! There is no spoon, damn it!

Mon, 05/20/2013 - 07:40 | 3579678 WTFUD
WTFUD's picture

There is very little that i could concede to George killer Bush but between him, Bill killer Clinton & Tony killer Blair he is the only one who could fuck his wife with the lights on.

Fuck fuck me do
you know i'll fuck you
and i'll always be true
fuck me do

Mon, 05/20/2013 - 07:45 | 3579681 Bearwagon
Bearwagon's picture

And he was also the only one who could cope with deadly pretzels!

Mon, 05/20/2013 - 07:36 | 3579672 blindman
blindman's picture

19 May 2013
Silver Market Sunday Evening Follies

" A large number of silver contracts were dumped on the Comex open on Sunday evening, a very quiet market period.

This ran the 'stops' and the price.

A similar number of contracts were then bought back at a lower price. And then the market was roiled, but started to recover from a very obvious price smackdown.

It is a little hard to see it on the 15 minute chart which just looks like a lot of selling. I hear that 2500 contracts traded in 15 minutes is a near record for an off hours session.

The action is much easier to see on the 5 minute chart below that.

This looks very much like the Dr. Evil strategy which the banks and funds like to use when the regulators are turning a blind eye.

I have included a 15 minute gold chart just for comparison sake.

If this was selling by a trader with an eye to raising cash, that trader should be fired. If it was done by a trader seeking to manipulate the price of the market, the CFTC should be able to find out fairly easily and publicly fine them. But don't hold your breath for that to happen in the US.

The price of key commodities are being set by what is little more than a bucket shop.

The world sees this, and is appalled." jca
http://jessescrossroadscafe.blogspot.com/2013/05/silver-market-sunday-ev...

Mon, 05/20/2013 - 07:32 | 3579669 JamesBond
JamesBond's picture

Isn't this why they are "richer" than us? 

 

 

jb

Mon, 05/20/2013 - 07:21 | 3579659 WTFUD
WTFUD's picture

UPRICK Rupert Murdoch's Defence of Jamie Dimon on his two tier racket @ JPM was rather touching i thought (call me sentimental).

Can Anyone tell me if Rebecca Brooks (ex Hooker @SunScum News International & wife of Charlie Brooks preferred riding partner of David dimwit Cameron PM) is in Jail YET for Tapping dead kiddies Phones?
OR Has Uprick Murdoch managed to PAY OFF " the not so serious Crime Sqaud" boys in blue& Injustice uk department?

Only then will i hazzard a guess as to your? 'is every market rigged"

Mon, 05/20/2013 - 07:20 | 3579655 BeetleBailey
BeetleBailey's picture

Excellent GW

Mon, 05/20/2013 - 06:31 | 3579612 WTFUD
WTFUD's picture

"is every market rigged?"
"Is Every COP out there Protecting Joe Public from EVIL?"

Mon, 05/20/2013 - 06:39 | 3579620 Bearwagon
Bearwagon's picture

Does the bear shit in the woods? ;)

Mon, 05/20/2013 - 06:06 | 3579594 mendigo
mendigo's picture

Manipulation is against the law and will be severely chastised...
unless it is policy - then move along.

Mon, 05/20/2013 - 04:38 | 3579566 ak_khanna
ak_khanna's picture

The basic mechanism of price discovery (based on demand and supply for actual use) of anything traded on an exchange has been terminally infected by speculators having access to unlimited funds and super fast computers for trading leading to volatile price swings. This has been made worse by the launch of ETFs for anything and everything under the sun by the financial community.

In a casino, the house always wins and in all the electronic exchanges, the too big to fail banksters are the operators. Armed with funds from the FED and using High Frequency Trading softwares and Derivatives, they move the markets exactly where they want it to cause maximum losses to the traders and the hedge funds.

Even if they do make a loss, their budies, the central bankers and politicians are there to transfer their losses to the taxpayers so that they have a 100% success record in transfering wealth to their coffers from rest of the world.

http://www.marketoracle.co.uk/Article40231.html

Mon, 05/20/2013 - 03:55 | 3579539 AnAnonymous
AnAnonymous's picture

'Americans' run a business of extorting the weak, farming the poor.

They picture it as being mutually benefitial, consented, or anything like that.

Any 'american' market is rigged.

Problem is to know in favour of whom the market is rigged.

The oil market is rigged just like any other 'american' market as it is a coercive market with arabs in fear of being bombed if they do not sell and accept massive loads of USDs in exchange of their physical oil.

But it is no longer prosperous enough to provide for the 'american' middle class that starts thinking that some of their servants (big oil, the oil corporations) are taking too much for themselves.

The way 'americans' feel it.

Mon, 05/20/2013 - 07:16 | 3579647 BeetleBailey
BeetleBailey's picture

fuck off hoser

Mon, 05/20/2013 - 04:10 | 3579551 bunnyswanson
bunnyswanson's picture

This is the American way (one of the volunteers mentioned was my father).

 

 

 

THE TRIBUNE DEMOCRAT
JOHNSTOWN, PA
1965

13 Jan 1965
Submitted by Lynne Canterbury

 

2 MEN KILLED AT TIRE HILL
AS CRANE BUCKET FALLS

Working In Airshaft At Mine

Two men were killed Tuesday afternoon when a bucket from a crane fell on them in a deep airshaft being opened for Fird Coal Co.'s Mine 3 at Tire Hill.

The dead were identified as:

FRANCIS H. MAY, 49, Johnstown R.D.4, near Tire Hill.

RENO VIOLA, 34, Morgantown, W. Va.

The accident happened about 3 o'clock in the Moonshine Hollow section of Tire Hill, south of Johnstown in Conemaugh Township, Somerset County.

The 2 victims were in the bottom of the airshaft -- about 550 feet down. The shaft is 6 feet in diameter.

They had filled the bucket with mud and dirt, and it was being hauled to the surface.

Cable Snaps
The three-quarter-inch thick steel cable on the bucket snapped as the bucket was on or near the surface, sending the bucket plummeting down the shaft on top of the men below. The bucket weighed approximately 1 1/2 tons.

Somerset County Coroner Robert H. Halverson said the men were killed instantly.

The men were working for Zeni, McKinney & Williamson, a subsidiary of Dravo Corp. of Pittsburgh. They were not employed by Bird Coal and, Coroner Halverson pointed out, the fatalities are listed as industrial accidental deaths, not mine fatalities.

Father of 11
Viola, father of 11 children, was the superintendent on the project. James Holbert, about 50. of Morgantown, W. Va., was operating the crane.

Observers said there was no way for the men to avoid being struck when the cable snapped. It was learned that the cable was installed Dec. 5.

After the accident, Holbert went to the Bird Coal Co. mine for help. Volunteers performed heroic deeds in recovering the bodies from the deep pit.

One man -- Edward Barr of Windber -- made 5 trips into the shaft.

Operates Crane Through Ordeal
Holbert, after getting assistance, returned to operate the crane throughout the 6-hour ordeal of recovering the bodies.

Viola's body was brought up at 5 o'clock. He was taken to Memorial Hospital after being pronounced dead at the scene by Dr. Reginald Davis, Bird Coal Co. physician.

Frank Hillman, chief deputy coroner of Cambria County, said Viola died of extreme multiple crush injuries of the head and body.

May's body was brought to the surface at 9:09 o'clock.

Coroner Halverson said May died of multiple fractures and extreme crush injuries of the head and body.

Mine Inspectors at Scene
Efforts to recover the bodies began right after the accident. State and federal mine inspectors joined Coroner Halverson and Somerset County Sheriff Norman Walker at the scene.

With Holbert on the crane, Barr -- chief electrician of Bird Coal's Mine 3 -- and another volunteer whose identify was not learned, were lowered into the shaft on a second bucket which was attached to the crane.

Barr and his buddy put Viola's body in the bucket and returned to the surface. Krings Volunteer Fire Company's ambulance took the body to Memorial Hospital.

A second trip into the shaft was made at 5:18 o'clock. Jack Barber of Davidsville was identified as one of the 2 men making that trip. They were unable to remove the body, however, and returned to the surface.

Barr and George Steele, identified as a mine foreman for Bird Coal's Mine 3, went down and attached a chain to the bucket in the bottom of the shaft.

Chain Breaks
They were on their way up -- at approximately the 300-foot level -- when the chain snapped and the bucket dropped into the hole again. Barr and Steele were thrown against the sides of the airshaft, but were not injured.

In subsequent efforts, the bucket was brought to the surface and May's body was recovered. The Salvation Army's mobile canteen from Johnstown was there to provide food and hot coffee for the volunteers.

The men going down in the shaft had 2-way radio equipment with them to send instructions to Holbert on the crane.

Construction on the airshaft was started Aug. 14. The job was to be completed in another week.

At 555-Foot Level
Viola and May were at the 548-foot level Monday. It was estimated that they had reached the 555-foot mark Tuesday before they were killed. The airshaft would have been finished in another 35 or 40 feet.

May, a bachelor, lived along Moonshine Road, across from the field where the airshaft was being bored.

Halverson was told that Viola considered May an outstanding worker, and was trying to convince him to continue on the job at the site in Kentucky when the Tire Hill project was done.

An investigation into the fatalities has been scheduled thentatively for 9:30 a.m. today. Mine inspectors noted that the investigation will fall under the supervision of the State Department of Labor and Industry.

Aids in Recovery Work
Among the volunteers joining in the recovery work was William Davis of the Pittsburgh area, who had just finished work on an airshaft for the Zeni, McKinney & Williamson firm in Bobtown, Greene County. Davis made at least one trip into the shaft during the recovery operation.

Mine inspectors at the scene included Stephen A. Andrejko, Jr., William Demkowicz, Samuel Slatcoff, E. H. Pauley, Lawrence Jones and J. B. McCarty.

Glenn Hoffman of Benscreek, a crane operator, was called to the scene to give Holbert a rest, but Holbert stayed at the controls until the end.

May and Viola were sending up their last load for the day when the cable snapped and the bucket fell on them.

* * * * * * * * * *

 

RECOVERING MINE VICTIMS

A GRIM, HAZARDOUS TASK
By Dennis M. Casey
A small group was gathered around the entrance to an air shaft in the Moonshine Hollow section, near Tire Hill.

Most of the men were miners, but some obviously were white-collar workers whose jobs had sent them to the spot where a loaded 1 1/2-ton bucket has crashed down the shaft and pinned 2 men beneath it, killing both.

The mangled body of Reno Viola had just been brought from the bottom of the shaft by 2 miners, serving as rescue workers. But they knew there was no one to rescue.

Curses were spoken in a reverent tone as the body was placed on a wodden stretcher and was carried through the muck and placed inside the waiting Krings Volunteer Fire Company ambulance.

2 Go Down Again
When the ambulance left, the men stood around talking softly. Then, 2 volunteers went down into the shaft again by means of a bucket suspended by cable from a crane -- the same crane whose cable had snapped and sent a bucket plummeting toward the 2 victims.

As the bucket went into the opening, the man pressed toward the hole, looking at the volunteers. The bucket quickly disappeared into the earth.

In the work shack, blackened miners stood, their eyes seeming to glare through the dirt on their faces. Some were smoking and talking, others just looking through a small window toward the shaft opening.

"This is the third accident I've seen since I've been working in Pennsylvania," a miner with a definite Southern drawl said. "I feel like going back to West Virginia!" Some of the men smiled, a smaile that told of their fatigue.

In Radio Contact
In the work shack was a small radio receiver, from which came the voices of the men who were in the rescue bucket. One of the rescuers below the ground had a walkie-talkie, and he conversed with a coordinator for the crane above.

"Can't get him out. Bring us up." The voice came from the receiver.

Some hurried outside, but it was a while before the bucket reached the surface.

The rescuers reported that the other man was trapped beneath the first bucket and it would have to have holes burned in it so that a chain could be fastened and it could be lifted.

A mine inspector balked. "What about gas?"

"We'll run a test," a miner replied.

Volunteers
George Steele and Edward Barr volunteered to go down in the shaft to test, and, if possible, burn the hole. Steele is mine foreman of Bird Coal Co.'s Mine 3 and Barr is the mine's chief electrician.

The men entered the hole for the test and subsequent burning at 6:14 p.m. The rugged smileof Ed Barr glistened in the light from the crane that was lowering them. Then, the men were out of sight. And the crowd again was talking softly.

"I wouldn't go down in there for anything," a miner said.

Another nodded. "Be different if he was alive."

Back in the shack, the miners were talking softly so they wouldn't drown out the voice coming through the radio receiver.

Suddenly, the receiver crackled. "Going to cut."

A few moments later, the set crackled again. "Hooked (the chain had been fastened). Bring up up slow."

The men walked from the work shack back to the opeing. The only sound was that of an air compressor and the deep roar of the crane.

Then, there was a dull, deep, boom, and the ground shook. Everyone ran from the opening. "Explosion!" one yelled.

There had been no explosion; the bucket that had been attached to the rescue bucket had snapped the chair and fell back down the shaft from the 300-foot level.

The crane brought Barr and Steele up quickly. Steele reported that the chain had snapped. "Have to get a heavier one. That place has about 3 feet of water in it now."

Body Recovered
They got a heavier one, and Francis May's body was brought up later that evening.

One of the miners who had been standing at the site remarked: "Ya know, he (one of the dead miners" was down at the bowling alley last night. He was always laughing and joking around."

And some of the other smiled as they remembered. but some didn't. They would have to go to work in the mines the next day.

Mon, 05/20/2013 - 03:39 | 3579532 The Heart
Mon, 05/20/2013 - 03:03 | 3579521 unirealist
unirealist's picture

It's not a country.

It's a business.

Now give me my fucking money!

--Brad Pitt

(in "Killing Them Softly)

Mon, 05/20/2013 - 02:53 | 3579516 Wolf in the Wilds
Wolf in the Wilds's picture

I wonder if they would ever launch an investigation into the manipulation of gold and silver prices...... :P

Mon, 05/20/2013 - 07:19 | 3579653 BeetleBailey
BeetleBailey's picture

short answer wolf....no

Mon, 05/20/2013 - 01:44 | 3579466 q99x2
q99x2's picture

Algos have spotted crawling along the ocean floor from NYC towards Mt. Gox.

Mon, 05/20/2013 - 00:33 | 3579401 sink critically
sink critically's picture

Markets were created to redistribute wealth from everywhere into a few private hands. The rule of thumb is: If you are "allowed" to participate in the game without an equal vote on the rules of trade, you are the sucker.

There will always be those who insist that at some point in the past the game was not as rigged as it is now, that the average participant once had a fair or fairer chance, and that once upon a time the intention was not predicated on thievery and evil. To them I say, bs, the house always wins because the house makes the rules.

If you ever felt as if you were doing well with your investments it is only because it served the interests of the few private hands that you felt that way. To believe otherwise is the folly of the gambling addict.

Mon, 05/20/2013 - 00:35 | 3579394 Joe A
Joe A's picture

Yep, the world is one big maffia. And TPTB keep the world's population in check with religions, nationalism, TV, sports, etc.

https://www.youtube.com/watch?v=CgRWJP1Ktww

Way of the world, always been like that.

"Whether it is God or the bomb, it's just the same and it's only fear under another name".

Mon, 05/20/2013 - 00:29 | 3579393 adr
adr's picture

Commodities Futures Modernization Act

Make illegal market tactics legal, allow the criminals to test the water, they see no blowback from the feds, look at each other and smile, and we get $147 per barrel oil.

The crooks laugh all the way to the bank and make sure to make some nice campaign contributions.

Mr. Middle class says, "Now what? Oh great the king dong dildo. Let me get some more lube."

Mon, 05/20/2013 - 00:21 | 3579383 fireant
fireant's picture

Buy today to not miss the train

so states bernanke the brain

but the Fed will pump

when you buy they will dump

and your money will go down their drain

 

 

Mon, 05/20/2013 - 00:04 | 3579362 NoWayJose
NoWayJose's picture

Of course every market is rigged. Modern algos monitor all markets abd when they see opportunity they attack on multiple fronts. Need to drop gold? Go after silver too, pump the dollar, pump US stocks, suppress oil, and collect your profits...

Sun, 05/19/2013 - 23:42 | 3579328 steveo77
steveo77's picture

 1966 Mustang Exhaust Note
This beast sat in the garage for 9 years, a fine aging process.  

I needed to make it run to ship it, and instead of just making it run, did a restoration on it.    It really don't get any better than this.

With separate dual exhausts, header, and Super Turbo mufflers, she really sounds good.   This little video from a small camera does not do any justice to the exhaust note, but you get the idea.    At two points you can just quickly hear the secondaries kicking in.  

I used to drag race this car late in the last millennium.

http://oahutrading.blogspot.com/2013/05/1966-mustang-exhaust-note.html#c...

Also got a new post on Gold, ES, Corn

http://oahutrading.blogspot.com/2013/05/gold-es-corn.html

Mon, 05/20/2013 - 09:26 | 3579909 Race Car Driver
Race Car Driver's picture

GFY, douchebag.

Sun, 05/19/2013 - 23:20 | 3579285 TNTARG
TNTARG's picture

So, here we are and there are they, pretending that there's democracy, pretending that they're fighting against terrorism, pretending we've a free press, pretending we live in a World of free market, pretending 9/11 was a Al Qaida terrorist attack, pretending we have the UN who stand for us all, pretending Europe is United, pretending the US dollar is a strong currency, pretending there's no inflation, pretending the Euro isn't going to fall, pretending there isn't enough food for all human beings on this Earth, pretending there's not enough clean energy, pretending the oil spill into the Gulf of Mexico has been contained, pretending nothing is happening in Fukushima/Japan/the Pacific Ocean with radioactivity, avoiding facing reality.

So much for the dominant specie on the Planet. The unique suicidal one.

Mon, 05/20/2013 - 09:25 | 3579903 Race Car Driver
Race Car Driver's picture

> So, here we are and there are they, pretending ... avoiding facing reality.

 

In short: we live in a cartoon.

Sun, 05/19/2013 - 23:43 | 3579330 Anusocracy
Anusocracy's picture

Welcome to the Planet of the Subhumans.

Sun, 05/19/2013 - 23:47 | 3579337 TNTARG
TNTARG's picture

I think they're the Subhumans. Anless they've another Planet ready to be colonized.

Sun, 05/19/2013 - 23:12 | 3579278 the grateful un...
the grateful unemployed's picture

you have to draw a line after 2008. before 2008 government wanted lower oil prices, and in the post katrina market they sent oil to enterprise in order to boost inventories and give enterprise some leverage against imported oil. there was a lot of phony accounting, borrowed oil counted against enterprise reserve. but no one cared, because only arabs were getting screwed. post 2008 the government wants to keep a bid under all assets including oil [and mortgages] gasoline prices did not take the typical election year dip. obama sold out to wall street; chevron exxon and fuck main street - that much is obvious. this is why obama is against natgas which has twice the btu per dollar value right now.obama is a corrupt sob, just like bush, but the game has changed, and deflation is a real threat to the friends of obama and their phony capital. real price of oil is $50bbl but they won't let you have it.

Sun, 05/19/2013 - 22:51 | 3579244 canstacker
canstacker's picture

They are just walking around with their cocks hanging out, saying "What are you gonna do about it?". We can bitch all we want, it isn't going to do anything. The best thing we can do is to be aware of their games and try to use that information to look after ourselves.

Sun, 05/19/2013 - 22:12 | 3579147 WTFUD
WTFUD's picture

Must be very frustrating for you GW! That Jonny Mathias Song ' it's all a dream and illusion now, must come true sometime soon, somehow, all across the land. .. .
So we all know we are being Gamed and yet Tony Blair the Socialist ( cunt of cunts) is being paid by the Bankstas for after dinner speeches in the USSA while UK/EU/World Rots . . ..
When he and friend George Bush are tried for War Crimes we are getting somewhere.
Am tired of this BS. Let's talk SOLUTIONS because We NEED a LEADER NOW and You Da MAN.

Sun, 05/19/2013 - 22:03 | 3579121 nathan1234
nathan1234's picture

George- Why only from 2002?

Why not from 1971 when the US Govt started manipulating the price of oil by insisting on the use of US $ ?

It's because all such investigations done by governments is a cover up.

After the attempt is made people tend to forget. Memory is short. The media has nonsense to divert your attention.

What happened to the position limits to have been put into place by the CFTC?

All crooks, goons and criminals in charge.

Sun, 05/19/2013 - 21:48 | 3579067 nmewn
nmewn's picture

"The Commission … said, however, that its probe covers a wide range of oil products...(EDIT) biofuels...

 

***

 

The EU said it has concerns that some companies (EDIT and governments) may have tried to manipulate the pricing process by colluding to report distorted prices and by preventing other companies from submitting their own prices."

Hilarity ensues...this is the level we've devolved to.

A "government"...based on a currency, as its only premise for being, has concerns about something, it subsidizes & promotes.

Its not even possible to counter with a rational thought.

Mon, 05/20/2013 - 03:34 | 3579531 Poor Grogman
Poor Grogman's picture

The casino operator complains that one of it's customers manipulated the outcome of one of the games that only they were allowed to play thus leaving less winnings to go around.

Obviously there was one too many layers of robbery going on...

Mon, 05/20/2013 - 06:34 | 3579618 nmewn
nmewn's picture

lol...yes.

Its like living in a parallel universe sometimes, where wrong is right and right is wrong and they'll decide if you even get a set of dice.

Mon, 05/20/2013 - 06:47 | 3579624 Bearwagon
Bearwagon's picture

It's like living in imagination land: http://www.youtube.com/watch?v=ZxN2L99eddk

Sun, 05/19/2013 - 21:40 | 3579046 gorillaonyourback
gorillaonyourback's picture

Global net exports are decreasing.
I would bet the investigation shows downward price manipulation

Next stop $200.00/brl

Have to free oil from the commodities manipulation cuz we need more oil exploration russia break even is around $120/brl dont hold me but i think thats the ball park

Sun, 05/19/2013 - 21:28 | 3579019 eddiebe
eddiebe's picture

Survey SEZ: Yes!

Sun, 05/19/2013 - 20:56 | 3578943 diogeneslaertius
diogeneslaertius's picture

yes.

NWO HFT Algobot Derivatives Holographic EconomicDeathstar Created the Global Economic Crisis by design - its waterloo 3.0

 

they have decoupled the global fundamentals onto a simulation

in fact this has been going on since before we were all born and has merely Crystallized to this state, so long that people can barely differentiate any longer between reality and simulation (one of the key targets and desired effects)

 

you fucking rock the mic gdubs @WashingtonsBlog

Sun, 05/19/2013 - 20:50 | 3578925 blindman
blindman's picture

yes, everything is rigged and connected and then
rigged again.

Sun, 05/19/2013 - 20:57 | 3578949 diogeneslaertius
diogeneslaertius's picture

and also this

rigged six ways from sunday

Mon, 05/20/2013 - 08:26 | 3579735 blindman
blindman's picture

Talking Heads - "Once In A Lifetime"
"same as it ever was" ..d.b.

http://www.youtube.com/watch?v=I1wg1DNHbNU
.
think the pequod, rigged.
Chapter 128: The Pequod Meets The Rachel
http://www.youtube.com/watch?v=Tfd5vXKk3q8
.
Moby Dick; Ishmael & Queequeg; Elijah prophecy
http://www.youtube.com/watch?v=sVK9aaTEWbE&list=PL84BEB65C82C18F12
.
this is worth the 6:08.

Sun, 05/19/2013 - 20:47 | 3578918 ZerOhead
ZerOhead's picture

Do MARKET and RACKET share 5 of the same 6 letters?

Mon, 05/20/2013 - 02:35 | 3579508 wintermute
wintermute's picture

Bitcoin.

The only existing unrigged market.

 

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