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 | 3649765 GolfHatesMe
GolfHatesMe's picture

Housing - NAR

Wed, 06/12/2013 - 09:38 | 3649767 TheTmfreak
TheTmfreak's picture

Silver

Wed, 06/12/2013 - 09:39 | 3649769 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 | 3649787 King_of_simpletons
King_of_simpletons's picture

Rigged Market = New Normal

 

Wed, 06/12/2013 - 09:44 | 3649798 TeamDepends
TeamDepends's picture

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

Wed, 06/12/2013 - 09:49 | 3649811 TheTmfreak
TheTmfreak's picture

No.

Wed, 06/12/2013 - 11:14 | 3650111 johnQpublic
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!

Wed, 06/12/2013 - 09:53 | 3649821 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 | 3649889 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 | 3649977 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 | 3649834 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 | 3649961 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 | 3649792 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 | 3649849 Bay of Pigs
Bay of Pigs's picture

They did, Lie-bor

Wed, 06/12/2013 - 10:25 | 3649944 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 | 3649774 myne
myne's picture

Gold

Drugs

Food

Wed, 06/12/2013 - 09:42 | 3649771 SheepDog-One
SheepDog-One's picture

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

Wed, 06/12/2013 - 09:50 | 3649818 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 | 3649867 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 | 3649773 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 | 3649788 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 | 3649797 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 | 3649800 ekm
ekm's picture

At least, the keyword

Wed, 06/12/2013 - 09:50 | 3649817 fonzannoon
fonzannoon's picture

wait till they really have to start printing.

Wed, 06/12/2013 - 09:43 | 3649791 SheepDog-One
SheepDog-One's picture

Heavy smoke screen.

Wed, 06/12/2013 - 13:33 | 3650672 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 | 3649778 Sabibaby
Sabibaby's picture

The cheese market is still legit!

Long cheddar.

Wed, 06/12/2013 - 09:43 | 3649793 francis_sawyer
francis_sawyer's picture

The cheese [cutting] market is still legit

~~~

There... Fixed it...

Wed, 06/12/2013 - 09:43 | 3649796 SubjectivObject
SubjectivObject's picture

Booze market maaaaayy be legit.

Wed, 06/12/2013 - 09:50 | 3649816 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 | 3649828 francis_sawyer
francis_sawyer's picture

Monsanto is out to become Exxon Mobile...

Wed, 06/12/2013 - 09:41 | 3649779 Scro
Scro's picture

Time to bet against the house.

Wed, 06/12/2013 - 09:42 | 3649782 SubjectivObject
SubjectivObject's picture

<sarcasm off>

Food stuffs markets.

<sarcasm on>

Family farms.

Wed, 06/12/2013 - 09:43 | 3649789 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 | 3649947 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 | 3650545 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 | 3649790 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 | 3649801 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 | 3649807 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 | 3649808 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 | 3649812 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 | 3649823 NoTTD
NoTTD's picture

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

Wed, 06/12/2013 - 10:08 | 3649878 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 | 3650029 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 | 3650036 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 | 3650575 Intoxicologist
Intoxicologist's picture

Sasquash.  That giant, elusive vegetable of modern lore.

Wed, 06/12/2013 - 09:52 | 3649820 DaMule
DaMule's picture

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

Wed, 06/12/2013 - 09:58 | 3649843 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 | 3649941 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 | 3650179 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).

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