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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Pladizow's picture

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

King_of_simpletons's picture

Rigged Market = New Normal

 

TeamDepends's picture

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

johnQpublic'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, so logically, must weigh the same as a duck, and therefor, a witch, err, i mean, err, unmanipulated!

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

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". 

TeamDepends's picture

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

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its international on a computer system so you know it cant be breached.......you know bets cant be placed or withdrawn once the windows close......except their many examples of this happening but who cares....

Non Passaran's picture

Bitcoin isn't rigged.

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

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.  

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?

SheepDog-One's picture

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

TheTmfreak's picture

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

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.

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.

 

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.

SheepDog-One's picture

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

fonzannoon's picture

wait till they really have to start printing.

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

Sabibaby's picture

The cheese market is still legit!

Long cheddar.

francis_sawyer's picture

The cheese [cutting] market is still legit

~~~

There... Fixed it...

SubjectivObject's picture

Booze market maaaaayy be legit.

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.

francis_sawyer's picture

Monsanto is out to become Exxon Mobile...

Scro's picture

Time to bet against the house.

SubjectivObject's picture

<sarcasm off>

Food stuffs markets.

<sarcasm on>

Family farms.

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!

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

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.

Nothing To See Here's picture

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

/sarc off

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

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.

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.

 

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......

NoTTD's picture

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

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.

SAT 800's picture

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

SAT 800's picture

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

Intoxicologist's picture

Sasquash.  That giant, elusive vegetable of modern lore.

DaMule's picture

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

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!

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?

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).