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Presenting The S&P500's 50 Point Surge Courtesy Of The Illegal "Geithner Leak"

Tyler Durden's picture





 

Yesterday we broke the news of what is prima facie evidence, sourced by none other than the Federal Reserve's official August 16, 2007 conference call transcript, that then-NY Fed president and FOMC Vice Chairman Tim Geithner leaked material, non-public, and very much market moving information (the "Geithner Leak") to at least one banker, in this case then Bank of America CEO Ken Leiws, in advance of a formal Fed announcement - an act explicitly prohibited by virtually every capital markets law (and reading thereof). It was refreshing to see that at least several other mainstream outlets, including Reuters, The Hill and the NYT, carried this story which is far more significant than Season 1 of Lance Armstrong's produced theatrical confession and rating bonanza. It is notable that Richmond Fed's Jeff Lacker who made the inadvertent (or very much advertent) disclosure has not backed down from his prior allegation and told the NYT yesterday that "My understanding was that President Geithner had discussed a reduction in the discount rate with these banks in connection with these initiatives." What, however, the mainstream media has not touched upon, yet, is just how profound the market response to the Geithner Leak was, and by implication, how much money those who were aware of what the Fed was about to do made. Perhaps, it should because as we show below, the implications were staggering. But perhaps what is even more relevant, is why the Fed's previously disclosed details of Mr. Geithner's daily actions at the time, have exactly no mention of any of this.

Backstory

Before we get into the prime of today's narrative, a quick detour.

For those who may not remember, early August 2007 was a very tumultuous time in the markets. On one hand, it marked the all time highs of the S&P. On the other, August is when the cracks in the facade started to become apparent to all, even the Fed, following what is now known as the quant meltdown, in which quantitative strategies suddenly stopped working and led to a brief but notable market crash, one which caught the Fed's attention.

The immediate result of this major market swoon was not one, but two ad hoc FOMC conference calls, the first on August 10, and the second on August 16. The first one was more of a brainstorming session held at 8:45 am on Friday, in advance of a 9:15 generic market supporting statement by the Fed (full text here), whose purpose was, in the words of Chairman Bernanke, that "we’re just saying that we are here, we are going to try to maintain the fed funds rate at 5¼ percent, we will provide adequate reserves, and we’re going to try to work against any remaining stigma associated with borrowing at the discount window."

What is important about the first call is where Bernanke left it, namely with a direct preview of what was about to come next. To wit:

There is just one procedural point. Again, this is not something that we’re contemplating, but one possible thing we could do would be to lower the discount rate, reduce the 100 basis point spread between the discount rate and the federal funds rate. It’s not obvious that it is the right thing to do. There are probably some technical and logistical issues concerned with it. It’s not obvious that it would be helpful. But I just want to put it on a list of things that we might consider and to remind you that the procedure for doing it would involve requests from your boards and then approval by the Board of Governors. So should we come to that point and we begin to discuss that particular option, we would need the Presidents to get the assent of their boards so that we could go ahead and take that action. Are there any other comments or questions? All right. Well, we will keep you well apprised, and I’m sure you will be following the markets on your own.

That point came a few days later, when the disturbance in the markets continued and when the Fed felt compelled to hold yet another conference call not a week later, in which the Bernanke proposal to cut the discount rate spread to the fed funds rate was enacted, and the margin was cut in half from 100 bps to 50 bps.

The formal announcement of the decision to do this took place at 8:00 am on August 17 and was worded as follows:

To promote the restoration of orderly conditions in financial markets, the Federal Reserve Board approved temporary changes to its primary credit discount window facility. The Board approved a 50 basis point reduction in the primary credit rate to 5-3/4 percent, to narrow the spread between the primary credit rate and the Federal Open Market Committee's target federal funds rate to 50 basis points. The Board is also announcing a change to the Reserve Banks' usual practices to allow the provision of term financing for as long as 30 days, renewable by the borrower. These changes will remain in place until the Federal Reserve determines that market liquidity has improved materially. These changes are designed to provide depositories with greater assurance about the cost and availability of funding. The Federal Reserve will continue to accept a broad range of collateral for discount window loans, including home mortgages and related assets. Existing collateral margins will be maintained. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York and San Francisco.

The statement was the result of the previous day's (August 16, 2007) conference call deliberations which took place at 6:00 pm Eastern. And while the 37 page transcript provide much color in terms of the Fed's misreading of what was happening in the markets (in this case several computers going haywire, a faux pas that would only be matched by the January 21 2008 unprecedented and unscheduled 75 bps cut in response to Jerome Kerviel's overnight futures trading fiasco, what is particularly relevant to this story is a statement by then Fed governor Donald Kohn who said...

After this meeting is over, the Board will likely vote on two requests that we have in house to reduce the primary credit rate to 5¾ percent. We would announce this at 8:00 tomorrow morning, along with whatever statement the Committee approves, and we would expect and hope that if this goes forward as we anticipate, the other ten Reserve Banks would go to their boards after the announcement to come on board for the 5¾ percent primary rate so that we reduce any risk of leaks ahead of time.

... as well as a statement by none other than Tim Geithner who explained how the banks and other "market participant" institutions are acting and thinking at this troubled time, as follows:

...Although they had lots of clarification about what is permitted now under current policies at the discount window, they obviously don’t have any idea that we’re contemplating a change in policy or what might be possible and what we might say or not say going forward. They obviously can’t and understand that they can’t say anything about us...

What these two extracts confirm is that it was expected and well-known, after all it was "obvious", that the banks can not have advance knowledge of what the Fed would announce in just 12 short hours. Yet it is the latter that is of particular attention, and we are certain the Department of Justice and the SEC, are clearly ahead of us here, because it comes from none other than the person who it now is clear was the source of the leak.

The Geithner Leak

Those who happened to have the misfortune of trading stocks on August 16, 2007, and especially those who were short the stock market just because they saw the writing on the wall - writing that would crush the S&P to 666 in one and a half short years and lead to the failure or consolidation of half of America's banking system - remember that day very well. What happened on August 15, and continued through the 16th was an aggressive bout of selling, that took the S&P from 1390 to 1360 at the close of the prior day trading day, and subsequently sent it lower by another 30 points to 1330 at just about 2 pm Eastern. What happened next would have otherwise remained a mystery, if not for yesterday's declassification of the Fed's 2007 transcripts. Because suddenly, out of nowhere, an unprecedented bout of buying started with no news to serve as a catalyst. The buying sent the S&P soaring by some 50 points (!) in the span of an hour.

Once again - there was no market-moving news to explain this move. At least no publicly disclosed market-moving news.

Now we know whose job it was to unleash the buying spree at precisely 2:00 pm on that Thursday. His name: Timothy Franz Geithner.

And we know this because Jeffrey Lacker knows this. From the August 16 transcript:

MR. LACKER. Vice Chairman Geithner, did you say that [the banks] are unaware of what we’re considering or what we might be doing with the discount rate?

 

VICE CHAIRMAN GEITHNER. Yes.

 

MR. LACKER. Vice Chairman Geithner, I spoke with Ken Lewis, President and CEO of Bank of America, this afternoon, and he said that he appreciated what Tim Geithner was arranging by way of changes in the discount facility. So my information is different from that.

This exchange took place some time after 6:00 pm on Thursday, and some time after the 50 points ES ramp had taken place "out of nowhere." In other words, not only did the leak that many FOMC members (including, humorously, Tim Geithner) were concerned about take place, but it was none other than the Geithner Leak to at least Ken Lewis, and who knows how many other bank CEOs, which we also now know made the rounds among those bank trading desks who were privy to its confidential and illegal market moving content at just after 2:00 pm on that day.

For those who need a visual reminder of just what happened on August 16 2007, here it is:

Many shorts ended up being carted out of the front door that day, unsure what has just happened. Sure enough, the next day at 8:00 am the Fed did what it had decided the previously it would do, and announce the 50 bps cut to the discount rate to fed funds rate spread. The market response was just as blistering as the rest of the market piggy backed:

To summarize what happened for all those who were too stunned from the day's rapid events, the S&P futures moved from a low of 1320 (and 1330 at the 2:00 pm moment that the market saw a mysterious "invisible hand" pushing it higher), all the way to well over 1410 the next day: an unprecedented 90 ES point move in a few hours! The reason: the Fed's market moving announcement, as well as the Geithner Leak at just around lunch time on August 16th.

The Fed's Records

We now know what the illegal catalyst was for the massive market surge on the afternoon of August 16: Tim Geithner leaking what the Fed was about to do to the rest of his banker colleagues: a leak that breaches every possible law and rule.

So in an attempt to cement this fact with concrete official evidence, we went to the source: the New York Fed's own calendar of what Tim Geithner was supposedly doing on August 16th.

We have access to this thanks to an April 2009 FOIA request by the New York Time's Gretchen Morgensen. What the FOIA revealed to the NYT and the world, was 658 pages of daily events that Tim Geithner was engaged in, in the period from 2007 to 2009. Supposedly, this was a complete list of his daily events, and phone calls.

What the daily schedules show is that between August 8 and August 20, 2007 Tim Geithner was supposed to go on vacation to Cape Cod, from where he participated telephonically on at least the August 10 conference call.

It appears that Geithner ended his vacation prematurely, and was back in the office at 33 Liberty on August 13:

We fast forwarded to that fateful day - August 16 - when Tim was holding all these phone calls with Ken Lewis, and who knows who else, to see what, according to the Fed's official records, Tim Geithner was doing. We find...

... nothing! Actually no, we learn that at 5:30 am Geithner spoke on the telephone to then-BOJ Governor Toshihiko Fukui. And that was the only direct telephonic conversation Geithner had that day, at least according to the Fed's own internal records.

Between the 8:30 am "teleconference with Board of Governors" and the 4:00 pm "Markets Status Meeting", Tim Geithner apparently did exactly nothing. We now know that is not the case, as we know that he spoke to at least one Ken Lewis in the day(s) before the August 17th announcement. We certainly don't know who else he spoke to, to leak material, non-public and market moving information.

Perhaps it is time for a stronger FOIA request, maybe this time from someone like Bloomberg. Because we are 100% certain that if Bloomberg's Mark Pittman was still alive he would be all over this. We are confident at least one reporter at the Bloomberg newsroom is willing to carry on the Pittman legacy and find out why the New York Fed has no official records of what is arguably the most important time block of Tim Franz Geithner's daily calendar: his daily leaks of material Fed information to Bank CEOs.

Or perhaps this particular conversation was on Geithner's cell phone. Maybe it is time not for Bloomberg, but for the DOJ to step in and request Mr. Geithner's cell phone record: who knows - one just may find undisclosed conversations between the soon to be former Treasury Secretary and CEOs such as Ken Lewis, Lloyd Blankfein, Jamie Dimon, and all those others who it appears were worthy of knowing what the Fed would do almost one full day ahead of everyone else, and as a result make billions in illegal profits as a result of frontrunning the announcement of the world's most important central bank?

And perhaps it is time for all those who were short the market on the afternoon of August 16 to form a group and actually sue the Federal Reserve for not only breaching its responsibility to the US taxpayers, but for illegally enriching bank CEOs even more than it has to date?

* * *

Maybe there is a reason why the Fed has a 5 year delay in disclosing full transcripts. Because something tells us the statute of limitations on pursuing Fed inside information disclosure charges against the soon to be ex-Treasury Secretary will have just expired.

Of course, when the Fed's attempts to delay the inevitable convergence between stock markets and reality finally fails with a collapse that makes the August 2007 market moves seem like a joke, we are quite confident that the statue of limitations on that other form of justice, vigilante, will be the last thing the general public which has been betrayed by the Fed over and over and over, whose sole purpose is solely to make the rich even richer, will be the last thing on anyone's mind.

h/t Manal

 


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Sat, 01/19/2013 - 16:54 | Link to Comment francis_sawyer
francis_sawyer's picture

Shalom! ~ Let us 'PREY'... Let us go forward to help others [to serve US]...

Sat, 01/19/2013 - 16:59 | Link to Comment LeisureSmith
LeisureSmith's picture

Busted..I pray he gets preyed upon by angry birds of prey. Any predator, even a Predator drone will do.

Sat, 01/19/2013 - 17:18 | Link to Comment The Paucity of Hope
The Paucity of Hope's picture

Where's a velociraptor when you need one?

Sat, 01/19/2013 - 16:39 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

Geithner answers to someone.  He did not just call up his BFF Ken Lewis and say he had a hot tip for him.

Sat, 01/19/2013 - 16:39 | Link to Comment gratefultraveller
gratefultraveller's picture

Bounty "dead or alive" bitchez

Sat, 01/19/2013 - 16:40 | Link to Comment Theta_Burn
Theta_Burn's picture

Why those corrupt, immoral bastrds...

This revelation has with out a dought pushed us pogues over the edge.. in fact I'm heading to the liquor store now, I will be breaking the speed limit, and the whole trip there and back i will flick butts out the window. upon arrival I'll purchase an extra case of Long-Trail..and drink em al..I'll show those fuckers this shit won't stand.

Interrupt our game when an indictment gets handed up..

Seriously..will somebody, anybody get fucking arrested by this administration?

Cake or death douchbag?.. I'll have Cake please      h/t E. Izzard

Sat, 01/19/2013 - 16:42 | Link to Comment Seasmoke
Seasmoke's picture

was this when Goldman went a very impressive 90 for 90 positive days in the quarter

Sat, 01/19/2013 - 19:22 | Link to Comment knukles
knukles's picture

coincidences 

all 90 of 'em

Sat, 01/19/2013 - 16:43 | Link to Comment joego1
joego1's picture

WEASEL!

Sat, 01/19/2013 - 18:33 | Link to Comment kill switch
kill switch's picture

Little prick with the yellow teeth!! Makes me want to engineer a twenty story piano fall.

Sat, 01/19/2013 - 16:43 | Link to Comment not fat not stupid
not fat not stupid's picture

Seriously, does anyone here REALLY believe anything will come from these disclosures.

Sat, 01/19/2013 - 16:49 | Link to Comment BidnessMan
BidnessMan's picture

My one wish is to read next week's WSJ. Some folks do.

Sat, 01/19/2013 - 19:45 | Link to Comment hooligan2009
hooligan2009's picture

you mean read next weeks WSJ today, last week or next week? there...i made a definition of rehypothecation!

Sat, 01/19/2013 - 16:52 | Link to Comment Never One Roach
Never One Roach's picture

Why does "Pink Slime" come to mind?

Sat, 01/19/2013 - 17:05 | Link to Comment SmoothCoolSmoke
SmoothCoolSmoke's picture

My God, I cannot even imagine what a cool $1mm in SP August 1400 calls bought at 1pm on 8/16 were worth the next morning at 10am.

Sat, 01/19/2013 - 17:05 | Link to Comment luckylogger
luckylogger's picture

I remember that day quite well, and it was not the only one. Out of nowhere there would be unlimited bids and buying power coming into the market. Luckily a person could see when it happened and get out. It was market orders every so many seconds, cannot remember the exact duration but it was on auto-pilot to push things up. Always happened with no news or anything. Obviously it was either a leak or the fed or treasury doing it as nobody else has that amount of money.

I really appreciate the fact that at least somebody now has given a sensible explanation for what happened that day.

Thank you Zerohedge.

Sat, 01/19/2013 - 17:26 | Link to Comment TN Jed
TN Jed's picture

Yeah, that was a fun night around the old FAZ campfire.

Sat, 01/19/2013 - 19:32 | Link to Comment GNWT
GNWT's picture

and in a smoking gun manner not like the sledgehammer they use every day

 

seriously, we do need to file a RICO suit, citizens can file class action civil RICO in some

states

 

g

Sat, 01/19/2013 - 23:28 | Link to Comment Orly
Orly's picture

For sure.

They did it last Friday.  Tanked the VIX down, the algos read it and ramped SPX big-time into the close.   Happens a lot!  Not just in 2007.

:/

Sat, 01/19/2013 - 17:40 | Link to Comment falak pema
falak pema's picture

there is so much shit flying around that chasing it seriously is like chasing a mirage; another pops up and takes the public's scrutiny just when the last one comes on front page.

And the media keeps churning it like a page turner and the Oligarchs laff n say; "go hunt for butterflies you lousy sheeple.

We keep our eye on the ball; we keep printing! 

The smoking gun on that move now 5 years old is just "normal CB transactions" history! Move on."

Bravo.

Sat, 01/19/2013 - 17:18 | Link to Comment ebworthen
ebworthen's picture

Timmy the weasel will have a corner office down the hall from Ken Lewis 'ere long, or be the spokesperson for J.P. Morgan Chase to spackle over Jamie Dimon's missteps.

Sat, 01/19/2013 - 17:34 | Link to Comment Wakanda
Wakanda's picture

Rock on TDs.

Bloomberg?  WSJ?  DOJ?

Is there anybody out there?

Does anyone remember what the RICO Act is?

Hello?

...crickets...silence...

Sat, 01/19/2013 - 17:19 | Link to Comment TN Jed
TN Jed's picture

It's people!!  Soylent Fiat is made of people!!

Sat, 01/19/2013 - 17:21 | Link to Comment Miss Expectations
Miss Expectations's picture

Wonder who Timmay's been trying to call the last 2 days.

Sat, 01/19/2013 - 17:22 | Link to Comment bugs_
bugs_'s picture

Stay on this one ZH - its worthy.

Sat, 01/19/2013 - 17:33 | Link to Comment tao400
tao400's picture

Why is zero hedge surprised

Sat, 01/19/2013 - 17:48 | Link to Comment alibi
alibi's picture

I'm thinkin' Star Chamber.

Sat, 01/19/2013 - 18:04 | Link to Comment Herkimer Jerkimer
Herkimer Jerkimer's picture

'

'

'

'

'

IDEA TIME: How To Get This Bastard

 

 

Why doesn't ZeroHedge, coupled with whoever, get one of those White House pee-titions that seem to be ever so popular now, going, for the immediate investigation/prosecution of Geitner?

 

This is unconscionable. I can't cuss enough cuss words at this $#!+Rat to even begin with how he needs to be strung up by the tiny ones he has, in the public square.

 

Somethings got to be done.

 

We do we start thinking about thinking about getting the guns?

 

OJO

V-V

Sat, 01/19/2013 - 20:23 | Link to Comment Dewey Cheatum Howe
Dewey Cheatum Howe's picture

If you could get the 100k mark to force them to respond would send one hell of a message regardless of how things play out in the meantime.

This is one of those things were the full press needs to put on from all angles and not allow the pressure to be reduced until the other side is forced to react. Enough is enough with this shit. If the outcry is big enough and nothing is done it may wake some people up who don't know better and at the same time chip away at credibility of these assholes. At some point a line needs to be drawn so people have something the rally around.

Sun, 01/20/2013 - 13:56 | Link to Comment Mr. Magniloquent
Mr. Magniloquent's picture

Conveying the sentiment would be charming, but ultimately accomplish nothing. The White House has already refused several petitions on the grounds that The White House does not comment on the personal matters.

Sat, 01/19/2013 - 21:34 | Link to Comment holdbuysell
holdbuysell's picture

Obama hasn't done a damn thing since he's been in office to attack the fraud on Wall Street. The data show it.

Corzine was caught shooting the victim with blood on his shirt to boot...nothing. Crickets chirped.

Obama WON'T HELP YOU.

/rant off

Sat, 01/19/2013 - 18:05 | Link to Comment Cycle
Cycle's picture

Maybe this investigation could be combined with an investigation of the frontrunning in airline puts well before "911." Where the chance that the increase in option volume just before the event was random is less than 1 in a million.

Sat, 01/19/2013 - 18:08 | Link to Comment HowardBeale
HowardBeale's picture

Geithner will go down in history as the only Treasurey Secretary to ever be assassinated--except Hank Paulson, as the vigilantes will surely find them both when this all comes apart...

Sat, 01/19/2013 - 18:10 | Link to Comment Gold Dog
Gold Dog's picture

I see, now everyone is going to jump all over Timmah and Ken Lewis, just for front running a tid-bit of info...it's easy to criticize!

Sat, 01/19/2013 - 18:19 | Link to Comment earleflorida
earleflorida's picture

this is why i came to zerohedge... just to rub-elbows, metaphorically, with the legend-- Tyler Durden!!!  

Sat, 01/19/2013 - 19:10 | Link to Comment falak pema
falak pema's picture

is that a sicilian kiss? 

Apparently it has a double meaning! 

a) Besamé del meurte!

b) Cocktail!  Sicilian Kiss Recipe

Sat, 01/19/2013 - 23:32 | Link to Comment Orly
Orly's picture

falak, don't forget the Sicilian necktie!

http://www.urbandictionary.com/define.php?term=Sicilian%20Necktie

[0~

Sun, 01/20/2013 - 06:21 | Link to Comment falak pema
falak pema's picture

Alas, they didn't invent that read this : 

Andronikos was now formally proclaimed as co-emperor before the crowd on the terrace of the Church of Christ of the Chalkè, and not long afterwards, on the pretext that divided rule was injurious to the Empire, he caused Alexios II to be strangled with a bow-string (October 1183).

Alexios II Komnenos - Wikipedia, the free encyclopedia

and its story told in this novel ! 

Pech Souleila: Sidi Kafir: Falakpema: Amazon.com: Kindle Store

Sat, 01/19/2013 - 18:21 | Link to Comment mr_bad
mr_bad's picture

Is it just me, or does Geitner look like he shares DNA with a rat?

Sat, 01/19/2013 - 18:38 | Link to Comment mrdenis
mrdenis's picture


Aaron Schwartz  could have told us all ......

Sat, 01/19/2013 - 18:37 | Link to Comment Zer0head
Zer0head's picture

Pulitzer

Sat, 01/19/2013 - 18:44 | Link to Comment freedogger
freedogger's picture

Does this guy ever brush his teeth? Take a good look. Disgusting.

Sat, 01/19/2013 - 19:57 | Link to Comment Zer0head
Sat, 01/19/2013 - 18:50 | Link to Comment hustler etiquette
hustler etiquette's picture

So for most companies the discount rate represents the cost of running a business.  The banks have had it made.  For what it's worth, wooden bats stain, whereas aluminum regains it's lustre after a quick wipe down and thumbs can be broken on the locks of most public parks.

Sat, 01/19/2013 - 19:05 | Link to Comment falak pema
falak pema's picture

In the context of this thread here is an interview of Geithner done by the scion of conservative journals in the UK : The Economist.

For thirty years The Economist has been hard behind Thatcherism and very critical of "socialism" and state intervention, notably in EUrope. A true blue liberal rag when it comes to whittling away the labour unions of UK to small nothings in such brutal fashion. (Not saying Labour union power in UK, in the 60-70, was not deserving a kick in the ass, but to kill it totally...).

Since this crisis began they have, like all the others, Eurobashed copiously, not without reason but in a slanted and biased way, forgetting conveniently the bankster legacy of Thatcher/BLair/Brown mayhem in the heart of Scamistan City; now exposed by the Libor and HSBC off shoring scandals; just the tip of that City scumbags ridden iceberg.

So it is in keeping with this tradition of a truly straight firing conservative free market media spokesman to write a hagiography on Geithner's departure after having done "all this good work for the financial world".

Enjoy the hypocrisy of this "greatest, most originally impertinent and prescient of  journalistic experiences, the Eton of fine financial analysis like none other, the greatest beacon of British exceptionalism like the BBC is to world TV (we now know what that means with all those scandals n cover ups on Brit Afghan/Iraq military criminality and inhouse paedophilia hanky panky...Oh Aunty BBC! What would Oscar say!)...

Farewell, Tim Geithner: Lessons learnt | The Economist

Bottoms up! n Cheers.

Sat, 01/19/2013 - 19:16 | Link to Comment Cathartes Aura
Cathartes Aura's picture

excellent commentary falak - p'haps it takes a perspective outside of the actual nation-state to appreciate the whole picture?

for you.

Sat, 01/19/2013 - 19:37 | Link to Comment falak pema
falak pema's picture

lol! ty

The reality is the Oligarchy has won TODAY as we speak; and they are truly global and they have engineered since Reaganism began, knowingly and with utmost determination, the demise of first world welfare state; now evident as any chump knows that what can be made in China need never come back, not only what is consumed locally but what is consumed in first world! They have the consumer hooked like a junkie on debt and cheap export labour! 

So the whole debate of nation states in the current momentum is dépassé! These political guys take their orders from the global commercial/industrial/financial Oligarchs and like good Ottoman empire bureaucrats they look after the administration of socialised debt for their neo-feudalista masters.

Unless this whole shooting match comes down in flames like the Ottomans  and Habsburgs did!

And basically for the same reasons as we witness today. 

If the global trend is now irreversible (the energy conundrum, the ecology conundrum and the food conundrum are just three threads of this global reality made real time interlinked by the Internet culture), then people will have to live on two levels : 

belonging culturally and commercially to both local and global worlds. Inevitable. The old game played before Internet and Reaganomics took over looks like its over; unless there is a major violent global shock...)

Sat, 01/19/2013 - 23:31 | Link to Comment Cathartes Aura
Cathartes Aura's picture

those two levels you mention,

belonging culturally and commercially to both local and global worlds. Inevitable.

feel natural to me, as I've not subscribed to belonging to a nationstate (as in own'd by) since I was old enough to leave the one of my birth. . . why anyone would base their identity around a national-model is beyond my ken.

well, no, I understand it, but it's just sad to be used by a national story to carry out the meme on its behalf, particularly as we get closer to an "end game" that is so obviously chewing up humans, spitting 'em out like so much chaff.

no, I'll gladly sample all that humans have imagined, created, turned into art, celebrated. . . I cannot subscribe to the death cults of flag wavers.

simplify, survive.  until you don't.  blink of an eye. . .

Sun, 01/20/2013 - 06:42 | Link to Comment falak pema
falak pema's picture

sweetly said! 

Sun, 01/20/2013 - 11:12 | Link to Comment edb5s
edb5s's picture

Vonnegut, anyone? http://en.wikipedia.org/wiki/Granfalloon

The people love granfalloonery.

Sun, 01/20/2013 - 16:17 | Link to Comment Cathartes Aura
Cathartes Aura's picture

yes!  well spotted.

from your link, Granfalloon Technique:

Researchers since Tajfel have made strides into unraveling the mystery behind this phenomenon. Today it is broken down into two basic psychological processes, one cognitive and one motivational. First, knowing that one is a part of this group is used to make sense of the world. When one associates with a particular group, those in the group focus on the similarities between the members. This is different from people not in the group. For "outsiders" differences are focused upon and often exaggerated. A problem with the granfalloon is that it often leads to in-group, out-group bias.

which is the noose - making sense of a world that is so obviously non-sense!

there's the insanity, and now we watch the great unraveling.

I have a great fondness for many of the works that came from the 60's - be it authors, or films, or music - not all, but some - they were part of a revolution against the current culture, and some of the perspectives of the time still hold very true.

Sat, 01/19/2013 - 19:21 | Link to Comment knukles
knukles's picture

The Economist is one of the Leading Lights on an incredibly "intellectual level" of the NWO agenda machine.

FUCK THE ECONOMIST

Sat, 01/19/2013 - 19:42 | Link to Comment hooligan2009
hooligan2009's picture

the economist is a left wing comic...with about as much editorial credibilty as dog turd on a tramps shoe

Sat, 01/19/2013 - 23:02 | Link to Comment GoodMorningMr.V...
GoodMorningMr.VanRumpoy...'s picture

The Economist group is owned by the Rothschilds. The female Redshield sits on the board and the magazine was directly edited by Lord Rothschild himself in the 1980's.

It's a globalist publication. Pro-world government Pro-NWO. Incidentally the Economist Group also owns the Financial Times, "FT".

Sun, 01/20/2013 - 06:26 | Link to Comment hooligan2009
hooligan2009's picture

exactly...the FT is not called "the pink pages" for nothing.

you only get apolitical commentary if you can "sense" the ring of truth in blogs like this one.. all broadsheets are so "Pravda".

Sat, 01/19/2013 - 19:11 | Link to Comment jonjon831983
jonjon831983's picture

What? God damn, they prevented it from dropping lower?  Prevented those interested from a potentially better buying opportunity?

Either this Ken Lewis is a shit disturber or didn't get the memo from Timaahhh!!!!

 

And what happened to this FOIA Bloomberg's Mark Pittman???

Sat, 01/19/2013 - 19:13 | Link to Comment Miles Kendig
Miles Kendig's picture

Managing expectations in an age of perfect information shows itself for what it is in practice.

Sat, 01/19/2013 - 19:16 | Link to Comment ISEEIT
ISEEIT's picture

Faces of evil.

Seriously..This 'guy' would literally rip a fetus from the womb and consume it. He, and barack satan himself are known by the deceit. Lying is their only power and they abuse it prolifically. They must lie and deceive because that is the only means available for them to dominate contrary to your nature.

Resist.

Sat, 01/19/2013 - 19:18 | Link to Comment Peterus
Peterus's picture

Duh! You have to pass the weighted dice at some point.
Tim seems to do it old school - directly and on highest level. This casino has a reputation and history, some last second switcheroo by a croupier just wouldn't do. Mister chariman lays the dice by his own hand into mister CEO's palm.

Sat, 01/19/2013 - 19:27 | Link to Comment knukles
knukles's picture

HEY!

WHAT THE FUCK

HE WAS ACTING IN THE BEST INTERESTS OF HIS SHAREHOLDERS!

 

(The banks who own the Fed...etc...)

This message was brought to you by Hindenburg Catheters.  "Where a little feels like a lot"

Sat, 01/19/2013 - 19:19 | Link to Comment GNWT
GNWT's picture

I was short the NQ against the ES that day, don't even remember what happened just a blur.

 

When the first wave hit half my stops closed out and watched with amazement.

 

Finally, a smoking gun.

 

So now we know how they do it, and I have seen similar back to 92.

 

Geithner belongs behind bars with Corzine.

 

 

Stay liquid my friends...

Sat, 01/19/2013 - 19:28 | Link to Comment q99x2
q99x2's picture

It is crimminally legal for them to do that so why wouldn't they. As long as Holder is in the house they can do whatever they choose to do. It is not like this is America anymore.

Max Keiser has a nice report with Doug Casey from Argentina HERE

Sat, 01/19/2013 - 19:50 | Link to Comment Zer0head
Zer0head's picture

holy fck Saturday on a long weekend and this pathetic bit of reporting by David Muir of ABC -

just watched ABC World News - opening story Algeria

the good news is that 100 workers escaped, one Amercan is confirmed dead and some  others are missing. Over to you dickhead at the Naval hospital in Sicily - yes David, we are here at the Naval base with survivors who described how they escaped by baracading themselves in rooms, some survivors will be meetng with counselors to try and makes sense of their ordeal and others are getting ready to return home, back to you David, thanks dickhead. And Bob Dudley CEO of BP expressed his dismay over this incident,  and with that our coverage of the hostage situation is now over. 

In Brazil there was a horrific scene of a gunman attempting to shoot some politician...

 

 

(All I can say is thank goodness this hostage drama is over, can you imagine if it was still going on what with all of the festivities planned for Monday's inauguration)

 

Sat, 01/19/2013 - 20:01 | Link to Comment max2205
max2205's picture

BP, again.....evil or tool?

Sat, 01/19/2013 - 21:28 | Link to Comment knukles
knukles's picture

Dickhead?

For some reason that is particularly funny right now.

Sat, 01/19/2013 - 19:47 | Link to Comment world_debt_slave
world_debt_slave's picture

100 years of shearing the sheep coming to an end.

Mon, 01/21/2013 - 02:03 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

They're putting down the shears & getting out the mint sauce.

Are you sure you want to start cheering?

Sat, 01/19/2013 - 19:50 | Link to Comment Tim Knight from...
Tim Knight from Slope of Hope's picture

Tyler SHOULD get a Pulitzer, but I guess we need to reserve that kind of honor for the Krugmans of the world.

Sat, 01/19/2013 - 20:00 | Link to Comment ziggy59
ziggy59's picture

Theres always the Dynamite Man Award...

Peacegivers like Oh..
And the EU...

Gimmes a friggin break...

Sat, 01/19/2013 - 19:56 | Link to Comment ziggy59
ziggy59's picture

Anyone else getting really sick and tired of the golden showers administered to the public on an almost daily basis from these sociopathic psychopaths?

Sat, 01/19/2013 - 20:10 | Link to Comment logicalman
logicalman's picture

Don't those teeth just beg for the application of a fist?

Sat, 01/19/2013 - 20:51 | Link to Comment holdbuysell
holdbuysell's picture

VERY.WELL.DONE.ZEROHEDGE.

Sat, 01/19/2013 - 21:04 | Link to Comment holdbuysell
holdbuysell's picture

If you have any account at any of the TBTF, seriously consider making the effort to move to a community bank or credit union. Keep the money in your community. Let your neighbor earn the profit.

The added bonus is this is money that JPM, et al can't gamble with in their CIO (as ZH has shown and that likely all the TBTF do).

Sat, 01/19/2013 - 21:14 | Link to Comment luna_man
luna_man's picture

 

 

"statute of limitations"...

 

Can not, I repeat, Can not, apply to these CRIMINALS!

 

It's a given!...None other than MY MAIN MAN!! 

 

Sat, 01/19/2013 - 21:26 | Link to Comment Tsar Pointless
Tsar Pointless's picture

In other news, there is the beginning of the shortened NHL season and the NFL Conference Championship games this weekend to keep the attentions of the little children disguised as adults diverted.

Not that they need a reason.

Isn't it great that we're ruled by a bunch of idiots who can tell you the second-string quarterback of their local NFL team, yet can't name a single person that represents them in any local political capacity?

This is the dreaded "dictatorship of the proletariat", I presume.

Sat, 01/19/2013 - 22:18 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Isn't it great that we're ruled by a bunch of idiots who can tell you the second-string quarterback of their local NFL team, yet can't name a single person that represents them in any local political capacity?

My 2013 Stupor Bowl prediction: Houston Oilers over the Baltimore Colts, in overtime.

Sat, 01/19/2013 - 21:38 | Link to Comment q99x2
q99x2's picture

Nothing worse than a photo of a rat saying, "Cheeze."

Sat, 01/19/2013 - 21:39 | Link to Comment Lmo Mutton
Lmo Mutton's picture

Dropping the "Z" bomb on MSM

Priceless

 

 

Sat, 01/19/2013 - 22:18 | Link to Comment reader2010
reader2010's picture

As long as Joe Sixpacks still get their EBT cards honored, they don't give a shit. The Empire is lost from within. 

Sat, 01/19/2013 - 22:19 | Link to Comment bugs_
bugs_'s picture

stay on this one tyler - i see an Obama pardon in the cards for Geithner and the Banksters he told!

Sat, 01/19/2013 - 22:22 | Link to Comment El
El's picture

Yep. You called it. The statute of limitations for conspiracy is five years.

Sat, 01/19/2013 - 22:28 | Link to Comment Sambo
Sambo's picture

If after 100 years, the most corrupt nexus in the history of America - the Fed, the Govt & Wall St - continues to operate, it only means that the American public has no spine. Spineless sheeple.....they desrve what they get!

Sun, 01/20/2013 - 01:58 | Link to Comment bunnyswanson
bunnyswanson's picture

http://www.youtube.com/watch?v=2PqgJ69b79A Election day, 1960.

If the swindlers, crooks, liars and thieves allowed a president to come forward which would give Americans their country back, they'd do what they did before numerous times.  Until you get AIPAC OUT OF POLICTICS, there is nothing that can be done. 

Criticizing AIPAC is political suicide.  Ron Paul would like to know why.  I will tell you why -- because the Israeli lobby group have a goal and that is to make the USA it's bitch..well, there you have it, mission accomplished.

Sat, 01/19/2013 - 22:32 | Link to Comment ekm
ekm's picture

Nothing's gonna happen, nada, nicht, zilch, niente.

Nothing happened to Hank Paulson for his leak to hedge funds.

 

Move on. Just go and cheer up for the anointing of the emperor over the weekend.

 

You americans voted for him. So, enjoy the food stamps.

Sat, 01/19/2013 - 22:57 | Link to Comment Michelle
Michelle's picture

Not ALL Americans voted for him, just those on the dole or wanting to be.

Sat, 01/19/2013 - 23:05 | Link to Comment ekm
ekm's picture

That is democracy and your numbers are incorrect.

About 50% of voters voted for him, but only 50% of voters voted. Hence my math says that 75% of voters either voted for him or do not oppose what he does. Only 25% of voters oppose what he does. That's a super clear majority.

 

An ambasador dies in Benghazi, not only nobody knows yet, but nobody cares. Americans die in Algeria. For the press it is almost irrelevant.

 

Nobody cares any longer about anything as long as the handouts continue. I guess what's important is the football playoffs tomorrow.

Mon, 01/21/2013 - 00:32 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

There is no -1 or downvote or "oppose" vote in this "democracy" or 75% would have easily come out to vote that OBama CAN'T be President.

I wish it was a "vote NO" system instead of vote "yes" system.

Sun, 01/20/2013 - 01:40 | Link to Comment helping_friendl...
helping_friendly_book's picture

NO.

I have a job. savings. investments....etc.

I voted against the secret underwear cult, creep, polygamist.

100 Obama is better than 1/1000 romney.

What are you thinking?

You fucking people talk, talk , talk.......PM, guns and ammo.......all you can do is shoot children, movie goers, and Travon i.e. young, unarmed, black children.

take your pm and stick it. it will be no benefit to you.

Hey Michelle! You think you can do a better job?

You are free to run in 2016.

 

Sun, 01/20/2013 - 06:10 | Link to Comment Peterus
Peterus's picture

"You fucking people talk, talk , talk"

What is wrong with communication?

"all you can do is shoot children, movie goers"

As well I could say that is all you can do - and somehow lump mad guys that were in withdrawal of some psychotic (lagal) drug with your group. Obama is in the pocket of big pharma (look at Obamacare) so there - here is your connection. Anyone voting Obama is in fact supporting mass shootings?

"and Travon i.e. young, unarmed, black children"

That kick the shit out of a guy, see he's got a gun and say "now you're going to die"... BTW have you seen recent Travon picture or one from a few years before?

"Hey Michelle! You think you can do a better job?"

Ofcourse she would do much better job. It's not that Obama is incompetent, he's just bought and paid for and people he work for have interests that go against ordinary citizens.

"You are free to run in 2016."

No. Until the crash, it will be a repub or dem that will be the prez. You can't seriously call it running in elections when there is no chance to even be taken seriously and little chance to be just heard by your audience. It should read "You are free to make a farce of running in 2016".

Sun, 01/20/2013 - 17:01 | Link to Comment Blankenstein
Blankenstein's picture

Obama has shown that he backs the banking cartel 1000%.  Where are all the convictions of the high-ranking Wall Street mafia who almost brought down the banking system?  Oh that's right, they were bailed out with taxpayer money and then proceeded to give themselves record bonuses.  Where is the transparency in the government allowing the taxpayers to see exactly when bailout discussions began and all the information and parties involved in the decision making process?  Oh that's right, we get a puny scrap five years after the fact.  If he was for main street instead of Wall Street, why did he choose a Goldman Sachs-connected lawyer for his Attorney General?  .........

Sun, 01/20/2013 - 01:45 | Link to Comment bunnyswanson
bunnyswanson's picture

The UI receipients undoubtedly voted for OBeyme out of desperation but the welfare recipients don't pay attention to politics. They blindly go where they are told because they haven't the ability to consider the information available to them (too complex).

There ~was~ a large percentage of upper middle class who stood by this president, prior to the tax hike - you'll find them on Huffpo, flagellating themselves for having done so.  This dismantling of America occurs in segments, the best for last (the-rich-but-not-rich-enough) - in the form of more tax hikes, I believe.  Segmentally done so that he'd win this election most probably.

Sat, 01/19/2013 - 22:36 | Link to Comment Tum
Sat, 01/19/2013 - 22:42 | Link to Comment toomanyfakecons...
toomanyfakeconservatives's picture

Insider trading jail sentences are for little people like Martha Strewart... not mega criminals like Timmy.

Sun, 01/20/2013 - 00:25 | Link to Comment Milton Waddams
Milton Waddams's picture

Anyone that has had the unfortune circumstance of reading the Federal Reserve transcripts in totality knows that the 'Geithner Leak' is a drop in the bucket.

Sun, 01/20/2013 - 00:56 | Link to Comment wisefool
wisefool's picture

I talked a farmer about what he needed to do to bring 40 acres back to production. ground was left fallow for a year. So every weed, especially the invasive ones, had rewilded the plot. baby trees. johnson grass, etc.

He said he used pesticide ________ (I can't remember the name). 2oz. I asked him 2oz. per acre? he said no. 2 oz. for the whole forty. (diluted of course)

True story. The AG folks here could probably back me up with an actual name of the agent.

Sun, 01/20/2013 - 14:02 | Link to Comment Stud Duck
Stud Duck's picture

2 oz of high concentrate Roundup mixed with 80 gal of water and a sticker agent should get a good kill on 40 acres.

Just a FYI

Sun, 01/20/2013 - 01:01 | Link to Comment tok1
tok1's picture

One simple thing that should be done ( which floor trading use to allow)
Is all trades ( futures/ cash ) should show on the time of sales
who bought and sold for every trade ( Singapore does this).

So when market has sudden move everyone can look and see which broker brought ( and the underlying account). Ie so if goldmans buys via a second broker we can see that's it's broker x on behalf of Goldman and then even the underlying client ( ie it's open free maket no one should hiding)..so if BOA buying in large size lets see it ( then if get this situation )
relevant people at FED should be obligated to check ( ie why big buyer a ahead of announcement )

Ie either it's free market or it's not . If someone wants a big position fine ( lets see) that would make people cautious about excessive exposure .

The problem is the exchange is letting them hide ( ie big buyer who is it no one knows) that's not free market .. If their big men lets see them like floor days when you saw the big.guys put on the position ..

Sun, 01/20/2013 - 01:04 | Link to Comment resurger
resurger's picture

after reading this i just feel i wanna stomp this fucking kyke with my Timberlands...

It has always been the case, to enrich themselves and no one else.

when will the circle circulate on those fuckers? God if you are there answer our prayers..

+5 ZH

Sun, 01/20/2013 - 01:28 | Link to Comment helping_friendl...
helping_friendly_book's picture

+100^10000000000000000

Why aren't we indicting these thugs?????

This gov't is so disappointing.

So weak.

Where are the gun nuts?

You have the guns!

You have the ammo!

You have indignation!

Where are the patriots?

All fucking talk while Wall Street retires to Monaco?

The Greeks make the USA look like, complete, pussys.

At least they set a few on fire.

 

Sun, 01/20/2013 - 17:56 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

WE? Vhere eez yoor badge, comrade? No, none?

Vhat eez zees?

Nussing to see here, comrade, move along

Sun, 01/20/2013 - 01:53 | Link to Comment tony bonn
tony bonn's picture

zh has re-earned its uber pulitzer prize worthy credentials!!!

Sun, 01/20/2013 - 02:03 | Link to Comment kennard
kennard's picture

 My post from November 21, 2008:

"Remember when Bush called a meeting on the meltdown before the election and invited McCain and Obama? On his way to the meeting, an Obama advisor got a call from a “Goldman contact” disclosing Paulson’s game plan, which Obama then used to throw in everyone’s face and toss the meeting into turmoil. My bet is that Geithner was the originator of the leak and that this, among other things, established his bona fides with the Kennedy Wing of the Democrats (aka “Obama”). Therefore he gets elevated to Treasury Secretary. Geithner has always been doing someone elses bidding. That’s his MO."

Sun, 01/20/2013 - 02:11 | Link to Comment kennard
kennard's picture

If the Fed got out of the business of intervening in the markets to effect "monetary policy", there would be no possibility of breach of trust by Fed officials. So long as they intervene, boys will be boys, Geithner or no Geithner.  /von Mises

Sun, 01/20/2013 - 02:07 | Link to Comment UGrev
UGrev's picture

Handcuffs? *chirp* *chirp* *chirp*.. 

Ok.. so, if mr. fancy pants doesn't have to obey the law, then I guess I don't have to either. 

Sun, 01/20/2013 - 03:01 | Link to Comment nathan1234
nathan1234's picture

Timmy is part of the crooked administration.

Does one think he would do and say any such thing unless he knew he would go scot free?

The SEC, CFTC et al are representative of the criminal behaviour of the Government.

Having killer lists, using drones - is that what any responsible Government would do?

Finally just like the Germans were responsible for Hitlers crimes, Americans will be judged likewise.

 

 

 

Sun, 01/20/2013 - 12:13 | Link to Comment therearetoomany...
therearetoomanyidiots's picture

I wonder who is the fucking moron with the down vote.  

Sun, 01/20/2013 - 03:50 | Link to Comment caerus
caerus's picture

who do you know that doesn't own apple? it's done...gaps will be filled

Sun, 01/20/2013 - 06:29 | Link to Comment hooligan2009
hooligan2009's picture

i had a gap once

Sun, 01/20/2013 - 03:54 | Link to Comment Sisyphus
Sisyphus's picture

Thanks ZH!

Having said that, is it just me, but nobody has thanked Manal. Both posts were hat-tipped to him.

So, thanks Manal!

Sun, 01/20/2013 - 04:02 | Link to Comment caerus
caerus's picture

all stocks die..aapl is dying...eventually there will be a new stock and that will die too

Sun, 01/20/2013 - 08:17 | Link to Comment PUD
PUD's picture

So, instead of lamenting or bitching...is there a way that we can join forces and bring suit?  Can zero hedge rally all these tens of thousands of angry readers and marshall their resources (legal and financial) to bring a public case against this man?

If not then all these words are in vain, this site is just a bitch forum and nothing what so ever will change

I will be the first to volunteer my time to do whatever is needed

Well?...

Sun, 01/20/2013 - 09:07 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

PUD, I [not a lawyer], can see a public trial on youtube, by citizens such as we on zh, laying out the facts of which are public, corzine, mazillo, timmy, going back to 2008 at least, the use of pols such as b frank, dodd, the fanny and freddy twins, kanjorski's some entity withdrew 500 billion in one move in fall of 08..we could do this and if TD wanted ZH COULD BE THE PLATFORM..

Sun, 01/20/2013 - 09:27 | Link to Comment PUD
PUD's picture

I was thinking more of a fund set up through zero hedge to hire a legal team and bring a case on behalf of all. Anyone listening? 

Sun, 01/20/2013 - 09:35 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

pud, kinda like trying to get basic backround info on the barry, obuma, suerto,aka potus... and the courts all nix with you do not have proper standing in this case mr voter or mr candidate for pres, that is what you will get..much cheaper to do a show trial on the crimes of the century, live on u tube, with judges and such. ZH fails in one aspect, it provides sun light on dark hidden finance, but the public needs a show. with a verdict and with plenty of high drama.

Sun, 01/20/2013 - 09:44 | Link to Comment Mr. Hudson
Mr. Hudson's picture

A trial on youtube? Who would be the jury? 12 rabbis?

Sun, 01/20/2013 - 12:36 | Link to Comment falak pema
falak pema's picture

monty python as the spanish inquisition. Bring out the racks!

Sun, 01/20/2013 - 09:51 | Link to Comment PUD
PUD's picture

What's the point other than to shame him? He needs to be held to account and punished. Enough people band together to bring a real suit would do that. We could organize protests until such a trial was held...come on...let's be creative here and not defeatist...surely there is a way with some thousands of zh readers

Sun, 01/20/2013 - 09:43 | Link to Comment Mr. Hudson
Mr. Hudson's picture

Lawyers are crooks. You set up a fund to go after Geithner and the lawyers would take all the money.

Sun, 01/20/2013 - 13:12 | Link to Comment helping_friendl...
helping_friendly_book's picture

Even if Timmy told Ken Lay there is no evidence traded on the information.

Having, or disclosing, inside information is not a crime. Trade on the information is the crime.

Sun, 01/20/2013 - 08:30 | Link to Comment IMA5U
IMA5U's picture

so basically as soon as geithner stepped down he is getting thrown under the bus

 

 

nice administration

Sun, 01/20/2013 - 08:39 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

what liability does the FED have for crimes taken by it's employees, BP was held accountable as a company for the gulf oil spill. turbo tim, is not the best target. the supreme court has favored lawyers who start cases suggested by the court ..this tells you that no cases have been brought against any public office holder or .gov agency. it is clear the supreme court here in usa is with the elite reptiles ..eyes wide shut.

I see only the various states that have people not fully controlled by elite nyc/dc/nwo..reptiles as the only option as all of fed .gov is locked down. at some point we can only hope a state govenor or ag will step up.

Sun, 01/20/2013 - 09:36 | Link to Comment Anasteus
Anasteus's picture

Shocking... thank you Tyler for the investigation.

Sun, 01/20/2013 - 09:44 | Link to Comment rwe2late
rwe2late's picture

 A relatively minor crime, among the many major ones,

of the previous administration,

which Obama has effectively pardoned (looking ahead, not back),

doubtless in anticipation of continuing those crimes and more

during his own administration.

Sun, 01/20/2013 - 11:47 | Link to Comment zdk45
zdk45's picture

"A relatively minor crime" 

Perhaps, however, I'd be interested to hear what constitutes major crime/fraud.

Because if information was released ahead of time, and that information was acted upon causing gains/losses, then it becomes an order of magnitude.

We are talking about the largest trading days of the entire decade, orders of magnitude greater than 

the days surrounding 9/11, in the midst of the greatest financial collapse in history.

Some might argue this is about more than just the few billions/trillions gained/lost based on fraud,

but about the foundation and integrity of the U.S. financial system.

 

Sun, 01/20/2013 - 16:48 | Link to Comment rwe2late
rwe2late's picture

relative to war crimes and violations of the Bill of Rights.

Sun, 01/20/2013 - 11:11 | Link to Comment gaoptimize
gaoptimize's picture

Being invested in DXD at the time (I thought for very good reasons) I want to know if there will be any class action litigation over this.  As a private entity, the Federal Reserve can be sued, right?

Sun, 01/20/2013 - 11:26 | Link to Comment jim249
jim249's picture

Buy gold and silver.

Sun, 01/20/2013 - 11:29 | Link to Comment villainvomit
villainvomit's picture

I used to wake up and think that things could not possibly get worse........everyday I am proven wrong.  Seems like only o.ne way this can end and it will not be pretty.

Sun, 01/20/2013 - 11:31 | Link to Comment GrinandBearit
GrinandBearit's picture

I remember this day painfully well.   I was short SPY that week.  I was on a business trip.  I got on the plane feeling like a champ.  I got off the plane, looked at the tv screen at the gate and felt sick to my stomach.

FU Geithner, you fucking scumbag.

Sun, 01/20/2013 - 13:50 | Link to Comment Stud Duck
Stud Duck's picture

I had the same experience with copper. I had 168,000 lbs of raw scrape, contracted to a Chinese buyer, he bailed on the contract for $4, ending up taking $2.80 3 months later, just to watch it go to $4 again, then crash  to $1.24 in  2008-09.   What a ride. I thought the cattle market in the 70s and 80s was a rough one, but never expected volatility to that degee!

You never get too old to learn a new lesson in treachery. I had "friends" in Chicago that would of gladly broke the chinamans legs but passed them all. but sure enjoyed the support from friends in low places..

 

Sun, 01/20/2013 - 11:33 | Link to Comment moneybots
moneybots's picture

"didn't Martha Stewart go to jail for just slightly less than this?"

 

Nobody breaks financial laws any more, according to the President.

Sun, 01/20/2013 - 11:43 | Link to Comment moneybots
moneybots's picture

August 16, 2007. 

 

Wasn't the market supposed to be a leading indicator of reccession and economic recovery, by 6 to 8 months?

The market went up into October 2007, just two months before the recession began.  The market even jumped to get to 14,000.  What other financial fraud was going on during that time to push the market up, in the face of a oncoming recession- that we still don't know about yet?

Sun, 01/20/2013 - 11:51 | Link to Comment lemarche
lemarche's picture

HANG THEM HIGH !! INSIDER TRADING AT ITS PUREST ! THANKS ZEROHEDGE FOR PUTTING FACTS ON WHAT NON WS TRADERS ALREADY KNOW BY SIMPLE LOGIC...

Sun, 01/20/2013 - 12:13 | Link to Comment disabledvet
disabledvet's picture

Well...he could have said nothing. Here's what would have happened if he had "done" that: http://www.youtube.com/watch?v=efFl_EDXCW0
is our preference that our leaders be completely out of touch? i mean "just ask Bear Stearns, Lehman Brothers, Merrill Lynch, Goldman Sachs and Morgan Stanley" right? Let alone "National City Corp, Washington Mutual, Wachovia, BofA, General Electric, Countrywide" etc, etc, etc. Geithner was a Government guy...THANK GOD. If we'd listened to these private sector ass-hats and their "Repo 109 bullshit" the entire country would be dead right now. Sorry that it interupted your bear love fest of course...but we can all agree that NOT have Great Depression 2.0 is a good thing can we not? How about just having a recovery at all? I mean "just ask the Governors of all fifty States, all the County Executives and town managers, the entire Pentagon and War Staff, the last President, the next President...all of Congress"....did i miss anyone? Oh, yeah..."and the head of the CIA who sent a 'slight depression' up your way to see how you all dealt with things when the 'chips were down.'" Send money? I'm sure that didn't surprise the director. "Nothing but a bunch of people who never could pay their own way to begin with" i imagine. If anyone needs a tax on billionaires its New York City...but nooooo, "that's the Federal Government's job" hardy har har.

Sun, 01/20/2013 - 12:14 | Link to Comment therearetoomany...
therearetoomanyidiots's picture

Stories like this, as well as scores of others, financial and not, because IT JUST DOESN'T MATTER.

They don't give a shit.  Chief among them this piece of shit Criminal In Chief in the White House.   The man who will take everything away from us.

 

Fuckers.

Sun, 01/20/2013 - 12:48 | Link to Comment Never One Roach
Never One Roach's picture

Do Geitner and Armstrong represent our new American culture?

Sun, 01/20/2013 - 13:33 | Link to Comment Downtoolong
Downtoolong's picture

Relatively speaking, my local used car dealer suddenly seems honest.

Sun, 01/20/2013 - 14:52 | Link to Comment SunRise
SunRise's picture

 

DOJ Contact Us Re: Timothy G.  http://www.justice.gov/contact-us.html

Sun, 01/20/2013 - 16:07 | Link to Comment Totentänzerlied
Totentänzerlied's picture

Public response: "Who the fuck is Tom Gethner? (Goes back to Honey Boo Boo reruns)"

Sun, 01/20/2013 - 19:31 | Link to Comment Tenshin Headache
Tenshin Headache's picture

He'll get away with it.

Sun, 01/20/2013 - 23:30 | Link to Comment Jugger Naut
Jugger Naut's picture

Those of us who manage the public's dollars will be held to account, to spend wisely, reform bad habits, and do our business in the light of day, because only then can we restore the vital trust between a people and their government.
– President Obama's First Inaugural Address, Jan. 20, 2009

1 of 7 failed promises of the 09 inauguration - Timmy should be in jail after these details came out last week and NO ones picking it up...

Mon, 01/21/2013 - 02:32 | Link to Comment mt paul
mt paul's picture

economy 

on debt steroids...

 

loop off one of his testicles 

Mon, 01/21/2013 - 12:58 | Link to Comment dadichris
dadichris's picture

This is criminal and so is the action taken by banks based on the information.  Indict their asses now!

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