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Summarizing The Known Rigged Markets

Tyler Durden's picture





 

Following last night's revelation that FX trading is the latest addition to the "rigged" column, here is a summary of the known market manipulation scandals (because it can be problematic keeping track of all by now):

  • Libor - interest rates (link)
  • ISDAfix - swaps (link)
  • Platts - oil prices (link)
  • WM/Reuters - FX (link)
  • High-Frequency Trading - equities (link)

We also know that the Fed and world central banks are engaged in a full blown (and unprecedented) Treasury curve modeling exercise courtesy of both ZIRP (short-end) and QE (long-end), and that courtesy of some $12 trillion in extra liquidity in the past 5 years, stocks are at an artificial "weath effect" sugar high.

We can therefore deduce that, following the process of elimination, gold and silver are the only markets that are unmanipulated and where transparent price discovery is allowed to take place without intervention from key players.

Sarcasm off.

 


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Wed, 06/12/2013 - 09:36 | Link to Comment GolfHatesMe
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Housing - NAR

Wed, 06/12/2013 - 09:38 | Link to Comment TheTmfreak
TheTmfreak's picture

Silver

Wed, 06/12/2013 - 09:39 | Link to Comment Pladizow
Pladizow's picture

As the FED sets interest rates, i.e., the price of money, then all markets are rigged!

Wed, 06/12/2013 - 09:42 | Link to Comment King_of_simpletons
King_of_simpletons's picture

Rigged Market = New Normal

 

Wed, 06/12/2013 - 09:44 | Link to Comment TeamDepends
TeamDepends's picture

Hey everyone, let's start a non-rigged market!  Can you imagine?

Wed, 06/12/2013 - 09:49 | Link to Comment TheTmfreak
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No.

Wed, 06/12/2013 - 11:14 | Link to Comment johnQpublic
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We can therefore deduce that, following the process of elimination, gold and silver are the only markets that are unmanipulated and where transparent price discovery is allowed to take place without intervention from key players, so logically, must weigh the same as a duck, and therefor, a witch, err, i mean, err, unmanipulated!

Wed, 06/12/2013 - 09:53 | Link to Comment aint no fortuna...
aint no fortunate son's picture

The little kid up the street is charging $5 for a 8 oz lemonade and there are a lot of shady looking characters with dark sunglasses hanging around checking their handhelds constantly - can't tell if they're traders or NSA but it stinks to hell

Wed, 06/12/2013 - 10:11 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

IMHO they are agents of the Florida lemon faction, making sure he doesn't use lemons sourced from growers who are not in the "fix". 

Wed, 06/12/2013 - 10:37 | Link to Comment TeamDepends
TeamDepends's picture

You can wake up under a bridge with broken kneecaps if you mess with the citrus boys.  Just sayin'....

Wed, 06/12/2013 - 09:56 | Link to Comment smlbizman
smlbizman's picture

and pari-mutual betting on horse racing....if anybody wanted to look.....but its international on a computer system so you know it cant be breached.......you know bets cant be placed or withdrawn once the windows close......except their many examples of this happening but who cares....

Wed, 06/12/2013 - 10:29 | Link to Comment Non Passaran
Non Passaran's picture

Bitcoin isn't rigged.

It's manipulated, but that's fine as long as all participants know it.

Wed, 06/12/2013 - 09:43 | Link to Comment nasdaq99
nasdaq99's picture

why on earth they didn't include interest rates is beyond me!  

 

interest rates and therefore every single thing under the sun.  

Wed, 06/12/2013 - 10:00 | Link to Comment Bay of Pigs
Bay of Pigs's picture

They did, Lie-bor

Wed, 06/12/2013 - 10:25 | Link to Comment YC2
YC2's picture

Couldn't they include gold and link to some CBer statement/paper to the effect of "it would certainly be a good idea to suppress gold prices" in that "smoking gun" article a few years back?

Wed, 06/12/2013 - 09:40 | Link to Comment myne
myne's picture

Gold

Drugs

Food

Wed, 06/12/2013 - 09:42 | Link to Comment SheepDog-One
SheepDog-One's picture

Well, gold and silver are the only mawkets not manipulated UPwards anyway.

Wed, 06/12/2013 - 09:50 | Link to Comment TheTmfreak
TheTmfreak's picture

That's so they can buy more physicals with free zero interest rate funny money.

Wed, 06/12/2013 - 10:06 | Link to Comment insanelysane
insanelysane's picture

I thought the authorities were supposed to look into physical manipulation but then decided it was a tempest in a teapot and closed the investigation.

Wed, 06/12/2013 - 09:40 | Link to Comment ekm
ekm's picture

It's been since forever I've been recommending to anybody to consider any data coming from the government and big banks and corporations as simply PROPAGANDA.

 

Wed, 06/12/2013 - 09:42 | Link to Comment ekm
ekm's picture

Furthermore, if you think that the Fed has been printing only $85 billion/month, you're fooled.

It's probably double that.

Wed, 06/12/2013 - 09:44 | Link to Comment SheepDog-One
SheepDog-One's picture

And the '$13 trillion over 5 years' is probably more like $26 trillion at least.

Wed, 06/12/2013 - 09:45 | Link to Comment ekm
ekm's picture

At least, the keyword

Wed, 06/12/2013 - 09:50 | Link to Comment fonzannoon
fonzannoon's picture

wait till they really have to start printing.

Wed, 06/12/2013 - 09:43 | Link to Comment SheepDog-One
SheepDog-One's picture

Heavy smoke screen.

Wed, 06/12/2013 - 13:33 | Link to Comment Blankenstein
Blankenstein's picture

How America's biggest banks took part in a nationwide bid-rigging conspiracy - until they were caught on tape

Read more: http://www.rollingstone.com/politics/news/the-scam-wall-street-learned-from-the-mafia-20120620

Wed, 06/12/2013 - 09:41 | Link to Comment Sabibaby
Sabibaby's picture

The cheese market is still legit!

Long cheddar.

Wed, 06/12/2013 - 09:43 | Link to Comment francis_sawyer
francis_sawyer's picture

The cheese [cutting] market is still legit

~~~

There... Fixed it...

Wed, 06/12/2013 - 09:43 | Link to Comment SubjectivObject
SubjectivObject's picture

Booze market maaaaayy be legit.

Wed, 06/12/2013 - 09:50 | Link to Comment Sabibaby
Sabibaby's picture

That's manipulated also :(

Next thing you know they'll be putting corn in our gasoline. Ahhhh... damn, already doing that too.

Wed, 06/12/2013 - 09:54 | Link to Comment francis_sawyer
francis_sawyer's picture

Monsanto is out to become Exxon Mobile...

Wed, 06/12/2013 - 09:41 | Link to Comment Scro
Scro's picture

Time to bet against the house.

Wed, 06/12/2013 - 09:42 | Link to Comment SubjectivObject
SubjectivObject's picture

<sarcasm off>

Food stuffs markets.

<sarcasm on>

Family farms.

Wed, 06/12/2013 - 09:43 | Link to Comment gdogus erectus
gdogus erectus's picture

I was about to give the article 1 star, cut and paste the conclusion and say that he forgot the sarc off at the end. Oh, there is one. Nevermind!

Wed, 06/12/2013 - 10:26 | Link to Comment freet0pian
freet0pian's picture

I'd prefer there wasn't a sarc off. It's a bit lame to add it. If people don't get it they propably have an extra chromosome.

/sarkozy off

Wed, 06/12/2013 - 12:57 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

Most people would still get it, w/o the sarc.  But if you are new to this circus?  You would be extremely confused.

Wed, 06/12/2013 - 09:43 | Link to Comment Nothing To See Here
Nothing To See Here's picture

Oh, and don't forget the voting process. It's not rigged either because democracy works.

/sarc off

Wed, 06/12/2013 - 09:45 | Link to Comment Jim in MN
Jim in MN's picture

 

 

Goldman Sachs -- market in OECD heads of state

Goldman Sachs -- market in OECD central bankers

Goldman Sachs -- market in Manhattan and Hamptons playpens

Wed, 06/12/2013 - 09:47 | Link to Comment 101 years and c...
101 years and counting's picture

GS admitted to having software that rigs the markets in a court room for fuck sake. And the programmer employed by GS goes to prison for trying to take the code.  Thats all you really need to know about how fucked up this country is.  If thats not enough, the SEC would rather watch gay midget porn instead of straight girl on girl porn.

Wed, 06/12/2013 - 09:47 | Link to Comment Hal n back
Hal n back's picture

hard to miss interest rates when the Fed says its keeping rates low (can it really) until labor improves. Maybe an idle threat.

 

How is housing and autos going to do with rates higher--whats the cost of an 8 year auto loan with nothing down going to.

 

Wed, 06/12/2013 - 09:49 | Link to Comment orangedrinkandchips
orangedrinkandchips's picture

There is NO SUCH THING AS A FREE MARKET....NEVER WAS NEVER WILL BE. Period. Check your expectations at the door!

 

This list also includes.....

 

Free Lunch

The perfect wife

Sasquash

efficient markets

santa claus

Easter bunny

 

you get the pic......

Wed, 06/12/2013 - 09:53 | Link to Comment NoTTD
NoTTD's picture

Glad to see Nessie didn't make the list.  She'd be very disappointed.

Wed, 06/12/2013 - 10:08 | Link to Comment tmosley
tmosley's picture

Huh?  Markets were pretty damn free in the US from the end of Reconstruction up until 1913.  Other western nations each had their own periods of very free markets around the same time frame.  Hell, you didn't even need passports to travel or move between most nations until the late 1800's.

Wed, 06/12/2013 - 10:52 | Link to Comment SAT 800
SAT 800's picture

I had a perfect wife once; but then her husband came back from Ohio.

Wed, 06/12/2013 - 10:53 | Link to Comment SAT 800
SAT 800's picture

The tooth fairy. I'm so glad the tooth fairy is not on your list.

Wed, 06/12/2013 - 13:04 | Link to Comment Intoxicologist
Intoxicologist's picture

Sasquash.  That giant, elusive vegetable of modern lore.

Wed, 06/12/2013 - 09:52 | Link to Comment DaMule
DaMule's picture

The list looks a little light. Wasn't the Municipal Bond Market rigged also?

Wed, 06/12/2013 - 09:58 | Link to Comment orangedrinkandchips
orangedrinkandchips's picture

As if it were just the markets that were maniuplated.....I lost interest in the NBA after Chicago went on their run.....It really seemed, and still does, very scripted. Of course it will go to 7 games....how could they pass up a ferw hundred million dollars? Suspense!

 

Not sure if I am right but it's suspect!

Wed, 06/12/2013 - 10:25 | Link to Comment ITrustMyGut
ITrustMyGut's picture

they were fixinbg baseball > 100 years ago... of course..

EVERY professional sport is managed... think these millionaires would leave the outcome of millions and million with every game.. up to chance?

Wed, 06/12/2013 - 11:35 | Link to Comment Hal n back
Hal n back's picture

I always wondered how gamned sports is--in b ball--Its kind of easy to miss a free throw or 3 pointer etc--but how do you know for sure someone will MAKE a last second 3 pointer??

 

Look at the  Chicago LA double overtime game--granted it was game 5. But how do we know the chicago goalie will just not miss one of the saves because he was screened from seeign  it--there still is a huge element of chance and luck in games--

 

maybe not wrestling, or some other sports--I guess each has to be on its own. I have felt as someone said the media paying for rights to broadcast do like 7 game series so I have always felt there were ways to make series go the 7.

 

After all--as one said it is a business.

in markets we know how almost anybody can paint a closing price but moreso if you are a big player (wink wink).

Wed, 06/12/2013 - 13:03 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

Basketball (as with other sports, such as soccer/football) isn't fixed, per se, as much as influenced.

The refs have a massive impact on the flow of the game.  And there are enough obscure calls in basketball that nothing is ever 'wrong'.  Last year in the Finals, for e.g., OKC found their shot blocker (Ibaka) getting in foul trouble early, and Westbrook and Harden couldn't buy a foul call driving to the bucket. 

They don't have to rig the whole thing, just influence key moment in the game, whether that is early on, or the final minutes of play.

Thu, 06/13/2013 - 06:50 | Link to Comment Jam Akin
Jam Akin's picture

Precisely.

Wed, 06/12/2013 - 09:52 | Link to Comment MrBoompi
MrBoompi's picture

All of this will come as a complete surprise to Congress too!

Wed, 06/12/2013 - 10:07 | Link to Comment xtop23
xtop23's picture

To some members, sure. The problem is the only indignation that results, is due to the surprise that the representative feels, when he realizes there is a revenue stream of payola that has remained untapped.

Criminal twats. The lot of 'em.

Wed, 06/12/2013 - 10:59 | Link to Comment pndr4495
pndr4495's picture

.........just like the Fed's creation in 1913 - the source of much of the world's present misery.

Wed, 06/12/2013 - 09:53 | Link to Comment NoTTD
NoTTD's picture

Well, then, I can take my tinfoil hat off.  Again.   I've had reason to take it off a lot recently.

 

 

Wed, 06/12/2013 - 09:54 | Link to Comment Everybodys All ...
Everybodys All American's picture

It's a full blown psy op.

Wed, 06/12/2013 - 09:57 | Link to Comment toros
toros's picture

Media/Education

Wed, 06/12/2013 - 10:01 | Link to Comment orangedrinkandchips
orangedrinkandchips's picture

Kenny Rogers said it best...."every hand's a winner and every hand's a loser and THE BEST YOU CAN HOPE FOR IS TO DIE IN YOUR SLEEP"......

 

(of course the Kenny Roger's Roasters was top 5 best Seinfelds ever!!)

Wed, 06/12/2013 - 10:10 | Link to Comment Cursive
Cursive's picture

LOL.  The rigged SPX is moving like the Nikkipennystock.  Up 11, down 8 in the span of minutes.

Wed, 06/12/2013 - 10:16 | Link to Comment icanhasbailout
icanhasbailout's picture

We're better off with a list of known unrigged markets:

- prostitutes

- street drugs

- surface to air missiles

- plutonium

...

Wed, 06/12/2013 - 10:21 | Link to Comment OldE_Ant
OldE_Ant's picture

Shorter too.

Wed, 06/12/2013 - 10:20 | Link to Comment OldE_Ant
OldE_Ant's picture

LoL add the other manipulated markets.

1) PMs

2) Oil/NG

3) Virtually every published market statistic.

4) Bond ratings

5) Gasoline prices

6) Law enforcement (or non).

7) Corporate profits.

8) MBS markets

9) Pharmaceutical industry with new drugs with lists of side effects longer than the bible that may or may not actually do anythine positive.

10) GMO free pass to forever polluting the gene pool.

11) FDA so that anyone with enough money can sell poison to people, and make money doing it.

12) Medical establishment, where any health idea that can't make money will always be put down in favor of (9) the magic blue pills from (9)

13) Manipulated news industry.

14) Manipulated communications/internet.

15) Manipulated airlines.

16) Manipulated weather, air, water, earth, and sun

17) Manipulated people.

etc. etc.

It's all manipulated!   Just because I don't have article links doesn't mean it isn't so.

Wed, 06/12/2013 - 10:23 | Link to Comment Free Wary
Free Wary's picture

forgot milk

Wed, 06/12/2013 - 10:29 | Link to Comment Cacete de Ouro
Cacete de Ouro's picture

Here's some more manipulated markets:

 

NSA operatives at major US management consulting firms and tech firms

CIA operatives at US investment banks

MI6 operatives at major overseas UK banks

 

manipulated, because the operatives never get let go, even when they are complete assholes.... so its a manipulation of the talent pool...

 

"We got a deep bench of talent".....ye, a deep bench of spook talent alright....

Wed, 06/12/2013 - 10:31 | Link to Comment Tombstone
Tombstone's picture

To my knowledge, central planning includes everything.  In this case, central planning is not going to create longer term wealth or prosperity, but is now the method of choice to use when dealing with a world sinking in debts.  Why so much debt?  That is mainly the result of utopian-socialist promises to gain votes to retain power in order to introduce more slavery and repression.

Wed, 06/12/2013 - 13:08 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

Why have sociopaths been elected, over honest individuals the last couple years?  Without taking into consideration the low likelihood of a honest candidate even making it onto a ballot, the reason is:

Sociopaths are glad to tell you what you want to hear.  They are glad to promise you SS, retirement money from the gov't, Medicaid, etc.  Key word: promise. 

Meanwhile, the honest candidate will tell you that government finances are in terrible shape, serious cuts need to be made, and its impossible for any area to escape unscathed (given the scale of cuts required), but in the long run your approach will restore the economic health of the nation.

What % of voters will vote for the sociopath?

Wed, 06/12/2013 - 10:49 | Link to Comment robertocarlos
robertocarlos's picture

Gold and silver cost 5 dollars to dig out of the ground and are free if you have scuba gear.

Wed, 06/12/2013 - 11:04 | Link to Comment fijisailor
fijisailor's picture

PMs were on sale early this week exclusively for non Chinese buyers.

Wed, 06/12/2013 - 11:16 | Link to Comment Lmo Mutton
Lmo Mutton's picture

"We can therefore deduce that, following the process of elimination, gold and silver are the only markets that are unmanipulated and where transparent price discovery is allowed to take place without intervention from key players."

 

Finally we can put this to rest and invest in the only solid paper market left.  Thank you T.

Wed, 06/12/2013 - 11:40 | Link to Comment BurningBetty
BurningBetty's picture

The promise of always paying back..courtesy of Ben the Tank: "we just press some numbers and you can have as much as you want. Best deal ever!"

Wed, 06/12/2013 - 11:20 | Link to Comment Lmo Mutton
Lmo Mutton's picture

"The perfect wife"

 

I got close.  She ran off and only comes back for sex and sometimes $$-but it costs her sex so.....

Wed, 06/12/2013 - 11:37 | Link to Comment BurningBetty
BurningBetty's picture

I'd rather not see it but I don't see how this will end well in the end. World wide anarchy. Few people f***ing over rest of the world as they please, no strings attached. While these imbiciles work above every law, the rest of the world is being properly "penetrated" to fight for the bits and pieces abiding their laws. F*** this!

Wed, 06/12/2013 - 11:39 | Link to Comment GoinFawr
GoinFawr's picture

Priceless

Wed, 06/12/2013 - 12:11 | Link to Comment Expat
Expat's picture

While I agree (and know) that oil markets are rigged, the document being used to support your assertion does not in any way indicate that oil markets are rigged.  It simply points out weaknesses in the Platts/Argus pricing systems.  Total does not admit to or point out price rigging in any of the oil markets.

Of course, Total has been suspected of rigging prices, squeezing markets, and colluding on many occasions.  Total has also been investigated for bribery, oil smuggling, and corruption (Nigeria and Iraq).  Nothing has ever come of all this.

Wed, 06/12/2013 - 12:19 | Link to Comment boeing747
boeing747's picture

Forget Facebook IPO rigging.

Wed, 06/12/2013 - 12:28 | Link to Comment boeing747
boeing747's picture

Gold&Silver prices are moderately rigged and Airline passangers are gently touched.

Wed, 06/12/2013 - 14:29 | Link to Comment Aurora Ex Machina
Aurora Ex Machina's picture

You missed one: Natural Gas market.

The City watchdog, the Financial Services Authority, is investigating claims by a whistleblower that Britain's £300bn wholesale gas market has been "regularly" manipulated by some of the big power companies, exploiting weaknesses that echo the recent Libor scandal.

Separately, the energy regulator Ofgem has been warned by a company responsible for setting so-called benchmark prices, ICIS Heren, that it had seen evidence of suspect trading on 28 September, a key date as it marks the end of the gas financial year and can have an important influence on future prices. [Guardian  Dec 2012]

 

Can you guess what happened to the whistle-blower?

 

Hint: if you think it bucks the trend, well, I have a bridge to sell you. Looks like the old castle model of neo-feudalism still applies. From a totally ignorant eye, it looks to me as if to compete against HFTs, traders couldn't be first, and they couldn't be smarter. Which left them with only one option.

I'm not an expert, so your milage may vary; I do know what Game theory says about the expected outcome though. Unlike what the muppets tell you, co-operation is the winning strategy for society, and these types of Games. Since we're in week of mourning for Iain M Banks, an excellent new writer is up and coming: The Jean le Flambeur series.

Wed, 06/12/2013 - 14:38 | Link to Comment NaiLib
NaiLib's picture

You also missed : The NSA rigging of National Media & Government.

Wed, 06/12/2013 - 16:17 | Link to Comment Downtoolong
Downtoolong's picture

And that ladies and gentlemen is how they produce perfect quarters, and over 100 straight days of profitable trading. Here you thought it was because they were good at picking stocks and predicting price trends in bonds, oil, and the S&P500 index. Ha, that losing game is reserved for Muppets and, of course, those eTrade babies. Aren’t they just the cutest little things? Yes they are. Yeesss they are. And don’ you just want to trade along with them so you can squeeze each and every one of the little darlings? Yeesss you do.

Huh, that’s funny, now that I think about it, that’s exactly what Goldman told me they want to do to.

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