This page has been archived and commenting is disabled.

"No Longer Confined To The Lunatic Fringe": SocGen Admits Markets Are Completely Manipulated

Tyler Durden's picture




 

Perhaps the most interesting thing about China’s "unprecedented" plunge protection efforts - which, as we outlined on Wednesday, have succeeded in making China Securities Finance Corp. a top-10 shareholder in at least eight firms - is that in some ways, they aren’t “unprecedented” at all. That is, while some of what we’ve seen out of Beijing over the past month - notably the sweeping trading halts and the Politburo agitprop campaign aimed at "malicious" foreign short sellers - was more overt than what we might expect to see in more "developed' markets, there’s certainly nothing terribly unusual about a central bank propping up equities. 

After all, the BoJ is well on its way to cornering the ETF market in Japan and, as a matter of policy, steps in to support Japanese stocks when sentiment appears weak, while the SNB has amassed a stock portfolio worth nearly $100 billion. As for the US, well, we’ve made no secret of our feelings about the slightly more than arms-length arrangement between the NY Fed and Citadel. 

Meanwhile, US corporate management teams are also in the business of propping up stocks as buybacks have served to replace the monthly flow lost to the taper. 

Considering the above, one is certainly left to believe that the term "market" may have lost all meaning in the seven years since the crisis. Here with a rather shockingly honest lament on manipulated markets, the disappearance of Benjamin Graham’s "voting machine", and perhaps most importantly, a vindication of the tinfoil hat fringe blogs, is SocGen.

*  *  *

Via SocGen

No longer a voting machine

If in the short run, to paraphrase Benjamin Graham, equities are a voting machine, then it seems many of these votes are being coerced by interventionists. China is not alone in trying to influence equity prices, central bankers the world over have become obsessed with asset prices, to the extent that the notion of central banks making outright purchases of equities is no longer confined to the lunatic fringe. Of course none of these institutions are remotely interested in 'weighing up' the long-term returns. If they were, given the absence of attractive valuations and actual cash flow growth, they might be a little more circumspect in their cheerleading.

Corporate executives, who are rewarded for achieving EPS and share price targets, typically in the form of stock options, are also experts in the art of creating a short-term positive market impression. And to great effect, given the (literally) incredible performance of some tech stocks last week. Positive price momentum is a powerful force and one that few corporates are likely to readily interrupt with bad news. So while 'prudence accounting'may inform GAAP earnings, it seems largely absent from many of the pro-forma figures corporates would like us to focus on.

One of our favourite charts below highlights the extent to which near-term earnings are influenced (manipulated ...?) by the approaching reporting season. Earnings are usually cut immediately prior to reporting only to see them beaten during that season. We call these "just in time" consensus forecasts. The problem with these manufactured surprises is they create a false impression as ultimately there is no follow-through to higher future expectations – the trend in earnings is still down. So perhaps it is best not to be short during the reporting season. 

* * *


 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 07/23/2015 - 07:09 | 6344605 VinceFostersGhost
VinceFostersGhost's picture

 

 

Admits Markets Are Completely Manipulated

 

 Wait....what?

Thu, 07/23/2015 - 07:16 | 6344614 Cognitive Dissonance
Cognitive Dissonance's picture

It actually started when they began to manipulate money, the means of exchange.

Thu, 07/23/2015 - 07:17 | 6344615 Supernova Born
Supernova Born's picture

Meaning gold and silver.

Thu, 07/23/2015 - 07:27 | 6344632 Fun Facts
Fun Facts's picture

Gold is the fiat anchor. The frame of reference.

When they manipulate gold, they manipulate the value of the whole fiat ring against real assets, which is of course why the gold manipulation is so important to the success of their now wholly fraudulent ponzi system.

Thu, 07/23/2015 - 07:33 | 6344645 Supernova Born
Supernova Born's picture

If this is success, batten the hatches for failure.

Thu, 07/23/2015 - 07:46 | 6344657 N2OJoe
N2OJoe's picture

So is this good news or bad news? Ah who cares, time to instantly dump Billions in gold shorts onto the futures "market" at the most illiquid hours possible!

Thu, 07/23/2015 - 11:57 | 6345523 KnuckleDragger-X
KnuckleDragger-X's picture

I remember way back when Japan was going to be the richest, most dominate country in the world and was buying up America. Now we have China and the script looks eerily familiar......

Thu, 07/23/2015 - 08:31 | 6344797 Mayer Amschel R...
Mayer Amschel Rothschild's picture

"Whoever controls the price of gold controls the world." H. Kissinger

Thu, 07/23/2015 - 09:12 | 6344915 Dapper Dan
Dapper Dan's picture

"Whoever controls the Prime Meridian controls the world"

D. Dan,  Circa 2008

 

 

 

"Whoever controls the Indian Ocean dominates Asia. This ocean

is the key to the seven seas in the twenty-first century, the destiny

of the world will be decided in these waters."

 

Alfred Thayer Mahan

 

 

 

 

 

 

 

Thu, 07/23/2015 - 08:33 | 6344801 LawsofPhysics
LawsofPhysics's picture

Correct, and it has been like this for 100+ years!

Thu, 07/23/2015 - 07:45 | 6344669 Slomotrainwreck
Slomotrainwreck's picture

"...the notion of central banks making outright purchases of equities is no longer confined to the lunatic fringe."

 

The manipulators have become the "lunatic fringe"

Thu, 07/23/2015 - 09:08 | 6344877 T-Bond
T-Bond's picture

"...the notion of central banks making outright purchases of equities.

It's much easier than that. They do it by purchasing "non-deliverable, cash settlement" futures and options contracts. Buy until expiration. Let them expire. Rinse and repeat.....Never have to sell.

Thu, 07/23/2015 - 07:49 | 6344683 p00k1e
p00k1e's picture

The start point was some Chosen Folk stringing Jesus up to shut his trap.   Let the good times roll.

Thu, 07/23/2015 - 10:02 | 6345073 J J Pettigrew
J J Pettigrew's picture

Control the cost of money, ie interest rates, and you control the cost of everything

denominated by money.  Simple really.

Thus we are not a free market but one manipulated by an unelected body of pseudo economists from ivory tower universities and mutual admiration societies.

Apparently, also, trading through the NY Fed branch loaded with Goldman Sachs and JP Morgan "friends"...and Citadel.

People who are tired of this, and are in the business...should have a trading halt of their own...enmasse .

Let Goldman and Citadel trade with each other.

Thu, 07/23/2015 - 11:02 | 6345300 Meat Hammer
Meat Hammer's picture

+1 for "mutual admiration society".

Thu, 07/23/2015 - 12:46 | 6345738 lunaticfringe
lunaticfringe's picture

I love the title however, I did not authorize the use of my photo. Please take it down ASAP!

Thu, 07/23/2015 - 10:52 | 6345261 Meat Hammer
Meat Hammer's picture

Someone's ready to say "Pull it!" now that the elites have stacked their phyzz.

Thu, 07/23/2015 - 07:14 | 6344609 Cognitive Dissonance
Cognitive Dissonance's picture

First they laugh at you, then they fight you, then they agree with you.

Thu, 07/23/2015 - 07:17 | 6344616 VinceFostersGhost
VinceFostersGhost's picture

 

 

I know this one.....then you kick their ass.

Thu, 07/23/2015 - 08:00 | 6344705 negative rates
negative rates's picture

No you don't, then they kick their own asses.

Thu, 07/23/2015 - 09:24 | 6344958 CPL
CPL's picture

Exactly.  There are only three inconsistent and consistantly annoying laws in the universe.  Sod's law, Murphy's law and Finagles law.  Anything will, can and does fuck up no matter how well planned, engineered, prayed for or developed.  If it's not on your side, takes very little to break literally anything or anyone.

Thu, 07/23/2015 - 07:26 | 6344634 swmnguy
swmnguy's picture

I'd say, "then they pretend that's what they'd known all along." 

Thu, 07/23/2015 - 08:20 | 6344771 LawsofPhysics
LawsofPhysics's picture

Get it right CD; "First they ignore you, then they laugh at you, then they fight you, then you win." - Gandhi

Thu, 07/23/2015 - 08:35 | 6344803 Cognitive Dissonance
Cognitive Dissonance's picture

Notice I did not use quotation marks. Thus I did not get it 'wrong'.

Thu, 07/23/2015 - 09:02 | 6344888 LawsofPhysics
LawsofPhysics's picture

Either way, there will be a fight.  There always is.  Nothing of any real value comes without sacrifice or work.

same as it ever was...

Thu, 07/23/2015 - 09:58 | 6345054 J J Pettigrew
J J Pettigrew's picture

"Every truth passes through three stages before it is recognized.  First it is ridiculed, then it is opposed, and finally it is

regarded as self evident."

Thu, 07/23/2015 - 07:14 | 6344610 Fun Facts
Fun Facts's picture

It's now an open secret that the central banks are maintaining absurdly high valuations in equities via open market operations.

Everyone knows it except the CNBC tards.

Thu, 07/23/2015 - 07:38 | 6344637 Supernova Born
Supernova Born's picture

The markets are now analogous to the Chernobyl sarcophagus , the Fukushima "containment" and the Hanford nuclear waste tanks.

Thu, 07/23/2015 - 07:57 | 6344695 booboo
booboo's picture

I would say a septic tank and I see the Taxpayer Honey Wagon in the distance coming to pump it out.

Thu, 07/23/2015 - 09:09 | 6344904 Solio
Solio's picture

Those holes were engineered in!

Thu, 07/23/2015 - 07:42 | 6344664 Ward cleaver
Ward cleaver's picture

Not true FF, they know it but are paid to say what the "Market Makers" tell them to say. No difference between them and that lady reporting the North Korean news on their only channel.

Thu, 07/23/2015 - 09:19 | 6344942 madcows
madcows's picture

The real question is "why?".

Remember, the central bank is just a collection of banks.  They are all lenders.  And, they've far over extended themselves.  This is about preserving the banks.  And they're desperate.  They're pulling out all the stops.  They can't create enough organic growth with low interest rates to collect the loan payments.  So, they bailed out their banker buddies with TARP.  They lowered the interest rates, but that wasn't enough. So, they lowered them further by BUYING treasuries.  But that wasn't enough.  So they began to buy mortgages and securities.  Still, that wasn't enough, so they began to buy equities out right.

The FED is shitting its pantsuit b/c the FIAT system is collapsing under their abject greed.

Thu, 07/23/2015 - 07:17 | 6344612 Silverhog
Silverhog's picture

One thing we know they are not buying paper Gold or Silver. That's done on the sly and only physical. 

Thu, 07/23/2015 - 07:20 | 6344623 NoDebt
NoDebt's picture

Buying gold and silver is racist.

Thu, 07/23/2015 - 07:44 | 6344666 Ward cleaver
Ward cleaver's picture

Everything rayciss

Thu, 07/23/2015 - 08:09 | 6344731 THE 4th Quadrant
THE 4th Quadrant's picture

#TinfoilLivesMatter

Thu, 07/23/2015 - 11:39 | 6345450 Meat Hammer
Meat Hammer's picture

Why don't you add something to the conversation? We don't want ZH to be an echo chamber, so why don't you give us your thoughts on the state of things?

Thu, 07/23/2015 - 11:58 | 6345532 pachanguero
pachanguero's picture

Ok, here in Thailand the gold is flying off the shelves....low price=more buying.....every whore in town is buying gold.

And that is a fact Jack!

Thu, 07/23/2015 - 07:22 | 6344618 NoDebt
NoDebt's picture

As I said, I believe we have reached a permanently high plateau in stock prices.  There's little reason for them to go higher (QE4 not announced yet) but no chance central banks will let them go lower.

Thu, 07/23/2015 - 07:22 | 6344626 Wahooo
Wahooo's picture

Yay, I won!

Thu, 07/23/2015 - 07:31 | 6344642 bentaxle
bentaxle's picture

But what kind of QE will QE4 be...if there's no collateral? The "no collateral" Weimar kind?

Thu, 07/23/2015 - 07:39 | 6344658 ebworthen
ebworthen's picture

The collateral is your life and mine.

Thu, 07/23/2015 - 08:03 | 6344716 negative rates
negative rates's picture

Hoo rah to the not so born again christian.

Thu, 07/23/2015 - 08:26 | 6344786 LawsofPhysics
LawsofPhysics's picture

Bingo!  Forward soviet/tenant!!!  

FYI- this "collateral" (my tribe and I) bite back!

Thu, 07/23/2015 - 08:32 | 6344796 ThroxxOfVron
ThroxxOfVron's picture

"The collateral is your life and mine."

 

Human productivity is the only collateral that has ever existed.

This is the last thing the statists and parasites, oligarchs and bureaucrats, debt dealers and counterfeiters, ever want the citizenry to wholly realize as the citizenry may act to enforce their property rights with regards to themselves..

Thu, 07/23/2015 - 09:04 | 6344892 LawsofPhysics
LawsofPhysics's picture

Please report to the nearest FEMA camp for your re-education...

(but yes, spot on)

Thu, 07/23/2015 - 09:33 | 6344938 Ghordius
Ghordius's picture

"Human productivity is the only collateral that has ever existed"

no, human productivity is the worst collateral that has ever existed

productive land and (staple or luxury) trade goods are the best, followed by capital goods like ships and machinery, but even cattle

"quality of collateral" is actually easy to understand: does it produce something, best reliably? then it's fine. can you reliably exchange it? second best

humans-as-collateral only comes into the game when the weasels start to say: "why not?"

Examples: "everybody ought to own a home", or "everybody ought to have credit", or "everybody ought to have a university education" or "everybody ought to have a car"

Thu, 07/23/2015 - 11:46 | 6345476 Meat Hammer
Meat Hammer's picture

On August 9, the Federal Reserve applied the pin to the bubble.  It increased the bank-loan rate and began to sell securities in the open market.  Both actions have the effect of reducing the money supply.  Rates on brokers' loans jumped to 20%.  On October 29, the stock market collapsed.  Thousands of investors were wiped out in a single day.  The insiders who were forewarned had converted their stocks into cash while prices were still high.  They now became the buyers.  Some of the greatest fortunes in America were made in that fashion.

http://www.activistpost.com/2011/11/g-edward-griffin-great-duck-dinner.h...

Thu, 07/23/2015 - 07:19 | 6344619 mvsjcl
mvsjcl's picture

What's the point of this article?

Thu, 07/23/2015 - 07:20 | 6344622 Supernova Born
Supernova Born's picture

To state the obvious and irritate the delusional.

Thu, 07/23/2015 - 08:01 | 6344706 kralizec
kralizec's picture

There should be a Captain Obvious tag for stuff like this.

Next they'll tell me eating beans could cause the expulsion of noxious fumes from my ass.

I am not that young...it's hard to recall a time when the casino's weren't rigged.

Thu, 07/23/2015 - 08:05 | 6344720 negative rates
negative rates's picture

Hope not, then you have to call the Dr. and tell him you have cancer.

Thu, 07/23/2015 - 08:28 | 6344791 LawsofPhysics
LawsofPhysics's picture

At least in a casino you know what the deal is!  Even better, should you actually win some cash, the casino will let you keep 100% of those "winnings"....

Thu, 07/23/2015 - 07:33 | 6344646 hardcleareye
hardcleareye's picture

Give you a chuckle over your morning coffee.....  lol

 

Thu, 07/23/2015 - 07:32 | 6344643 JustObserving
JustObserving's picture

there’s certainly nothing terribly unusual about a central bank propping up equities. 

That has been going on since at least 2009 if not January 1988 when the Plunge Protection Team was first formed.

What took you so long?

Thu, 07/23/2015 - 07:42 | 6344663 Winston Churchill
Winston Churchill's picture

The PPT massive success in 2000 & 2008 should give even CNBC pause for thought.

If they truly control equities,and have since 1988, what happened ?

HFT's is not as new as many people think,  first trading algoswere written back

in the 1960's.

Thu, 07/23/2015 - 07:49 | 6344682 Ward cleaver
Ward cleaver's picture

Interesting, my first memory of the algos was the 1987 crash which was when everyone bought into the "portfolio insurance"

Thu, 07/23/2015 - 08:06 | 6344722 negative rates
negative rates's picture

To much control(ing) is what.

Thu, 07/23/2015 - 08:21 | 6344774 dontgoforit
dontgoforit's picture

"And so Satan took him to a high precipice and said, 'If you but bow down and worship me, all these kingdoms of the earth I shall give to you.'"  - And Jesus, in the coolest way ever said, "It is written, 'Thou shall not tempt the Lord thy God.'" 

You really want to know who's behind all of this?  For many, there appears to be no way out; no going back. 

Haven't seen too many bankers take the leap lately.

Thu, 07/23/2015 - 07:33 | 6344647 wmbz
wmbz's picture

"SocGen Admits Markets Are Completely Manipulated"

Any market, goods or service that can be manipulated... will be, that is a fact.

It's nothing new it has been going on since the caveman. However manipulators have forever denied that they were doing such a thing, and would go to their grave before admitting it.

That has changed, now the "manipulators" are out in the wide open without any cover or shame or fear of prosecution, and that's what changed the game. No fear of breaking, bending or twisting laws.

The system is completely corrupt period from the bottom to the very top.

Thu, 07/23/2015 - 08:08 | 6344729 negative rates
negative rates's picture

Denial is a tough nut to crack.

Thu, 07/23/2015 - 08:20 | 6344766 Chupacabra-322
Chupacabra-322's picture

Corrupt? You're using the wrong "C" word. It's out in the open, in your face Criminality. Quite frankly, TPTB really do not care what the Slaves think. Psychopaths who believe they're untouchable.

Thu, 07/23/2015 - 09:42 | 6345026 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

exactly, let me know when SocGen admits not only that the markets are manipulated, but that their owners and they are the ones doing the manipulating, and that their very existence has been and always will be based upon criminality. 

Thu, 07/23/2015 - 12:09 | 6345578 monad
monad's picture

You're missing the point. They are attempting to escape the lieu by blaming their minky.

Thu, 07/23/2015 - 07:34 | 6344648 Bill of Rights
Bill of Rights's picture

If you thought for a second you've seen it all... Seattle officials join push for Sharia-compliant mortgages, loans

 

http://www.foxnews.com/politics/2015/07/22/local-and-commuity-leaders-ac...

 

We want to come to your country for a better life - now please change the way you do everything so its just like the

Thu, 07/23/2015 - 07:55 | 6344692 Monetas
Monetas's picture

If interest is illegal .... so is profit .... so is rent .... anyway, these Muzzie immigrants are being treated like "Welfare Royalty" .... much to the chagrin of Mexican "wet backs" .... who are Christian and work for a living !

Thu, 07/23/2015 - 08:11 | 6344738 THE 4th Quadrant
THE 4th Quadrant's picture

Exactly. The only way to beat the joo is to embrace the Muslim.

Thu, 07/23/2015 - 08:36 | 6344804 ThroxxOfVron
ThroxxOfVron's picture

"Exactly. The only way to beat the joo is to embrace the Muslim."

 

FUCK THAT NOISE.

Thu, 07/23/2015 - 13:51 | 6345941 HopefulCynical
HopefulCynical's picture

"Fuck that noise" is right.

Islam and Marxism are going to have to be wiped from the Earth. They are the twin religions of psychopathy.

Thu, 07/23/2015 - 13:53 | 6345942 HopefulCynical
HopefulCynical's picture

Duplicate.

Thu, 07/23/2015 - 07:37 | 6344654 ebworthen
ebworthen's picture

Pirates at least had the dignity to hoist the Jolly Roger before attacking.

Not these bilge rats.

Thu, 07/23/2015 - 08:42 | 6344827 ThroxxOfVron
ThroxxOfVron's picture

"Pirates at least had the dignity to hoist the Jolly Roger before attacking. "

 

I see modern variations of the Jolly Roger on every bank I drive past.

The ol' skull and cross bones were symbolic of the human age of plunder.  

Now the piracy is corporate, and thus the branding is corporatized.  

The Captains of Industry are the modern Captains of Piracy.

Wells Fargo logo = Jolly Roger logo.

Citi Corp logo = Jolly Roger logo...

Thu, 07/23/2015 - 08:36 | 6344655 gaoptimize
gaoptimize's picture

The general support by TPTB of PPTs proves this.  However, the wise will dismiss this article ;) - http://streetwiseprofessor.com/?p=8947

 

Thu, 07/23/2015 - 08:00 | 6344661 nopat
nopat's picture

I don't get it.  So, like, in the event earnings will be weak, companies disclose it as early as possible so as to set appropriate expectations and avoid surprising investors?  And I'm supposed to be 'shocked and outraged' by this...obvious stylized fact of the market?

Either whomever curates these articles for ZH needs to do a better job of filtering, or whomever is in charge of authoring these research articles needs to quit letting the summer interns have access to the 'send' button.  Because holy fuck this is bad...

Edit: not just bad, but outrageously bad.  The more I think about it, the angrier I get that someone actually got paid to type this bullshit excuse for 'insight.'  I don't know what's worse, this, or the fact everyone in here is jumping on it like it's gospel.  Seriously, folks, just stop and think for a minute the actual content of this report.

Thu, 07/23/2015 - 08:36 | 6344806 Dr. Engali
Dr. Engali's picture

No, companies lower guidance just so they can beat the lowered bar. It would be one thing if they said "we are lowering our guidance to x pennies per share" , but when they lower guidance to x and they beat it by x plus 5 pennies then that is clear market manipulation. As for the rest of your comment, please tell me you don't actually believe these are real markets? Because even my most unsophisticated clients know the deal. If you believe they are real then you stand alone.

Thu, 07/23/2015 - 08:47 | 6344835 nopat
nopat's picture

Hey asshole, re-read my comment.  Did i disupute the fact markets are or are not rigged?  No.  Am I disputing the narrative you present?  No.  Can you draw those conclusions from the analysis SocGen presented?  Abso-fucking-lutely not.  This isn't about what I or anyone else thinks of the markets.  This is about piss-poor analysis being pawned off to the masses and holding it up as some kind of incontrovertable evidence.  It's bullshit and I'm calling out the author as a hack.

After all these years and ZH is still slumming it with sell side research.

Thu, 07/23/2015 - 08:56 | 6344856 Dr. Engali
Dr. Engali's picture

 I'm simply saying that when companies lower guidance and then beat it handily they do it for their own benefit and not their share holders. The fact that you have to resort to name calling when challenged shows the depth of your mental maturity and you inability to express yourself in big boy words.

 

Edit: By the way, instead of getting angry about articles, do what the grown ups do. Either ignore them or choose not to read them. Kind of funny you've "been here"for six years and you only have three comments. 

Thu, 07/23/2015 - 09:03 | 6344881 nopat
nopat's picture

Big boy words?  Ok, did they follow individual company releases or some kind of industry cohort?  No.  Did they weight the results by some kind of measure (be it market cap, book value, etc)?  No.  All the did was take a ratio of aggregate upgrades/downgrades and plot it against aggregate earnings releases.  What does that tell you?  Absolutely nothing, other than the fact that companies, when faced with disappointing results, will get out in front of the news earlier (when there are less earnings releases) than companies that are going to meet/beat original guidance.  Which is like the biggest 'yeah, no shit Sherlock' statement of the century.  That's all.  Period.  There's nothing else you can infer from that chart, except maybe some 'trend' as to the overall ratio.  Even then that's not exciting, given the business cycle.

In short, it's absolutely worthless and I'm appauled it was published.

Thu, 07/23/2015 - 12:38 | 6345704 MeBizarro
MeBizarro's picture

Exactly.  This tells you nothing.  

Thu, 07/23/2015 - 13:08 | 6345819 ABCDEF123456
ABCDEF123456's picture

@nopat - Ignorant Immature Fool - Dr. already said it plain and simple..

You see that "x" in the top right? save everyone and yourself some time click it... ZHers have hear your songs for years now.

Thu, 07/23/2015 - 13:51 | 6345923 nopat
nopat's picture

For years.  Really?

And what songs would these be?

I highly suggest you re-read my comments.  Carefully.

Thu, 07/23/2015 - 13:18 | 6345847 Pareto
Pareto's picture

Sure.  But this is Soc Gen not ZH.  You can shit all over it, or, take it home and place it on a shelf.  who gives a fuck.  Its ZH saying, "oh look, here's Soc Gen weighing in."  thats it.  thats all.  its that easy.

Thu, 07/23/2015 - 13:46 | 6345927 nopat
nopat's picture

And I'm weighing in...on their...weighing in?

It's called a standard.  We should hold ourselves to one.

Thu, 07/23/2015 - 07:45 | 6344671 Spungo
Spungo's picture

The only way to know they are manipulated is if you are the one manipulating them. Quickly, arrest those men who point out the manipulation!

Thu, 07/23/2015 - 07:46 | 6344673 Monetas
Monetas's picture

Everyone gets out at the top .... bought out by a "benevolent" socialist government .... no one gets hurt .... the "People" end up owning everything through their government .... there's no crash .... a peaceful transition to a command market .... a Keynesian dream .... and people like Dutch Boy and Hillary .... really believe this crap !

Thu, 07/23/2015 - 08:11 | 6344737 negative rates
negative rates's picture

So if you like your crap, you can keep you crap, we call it too much junk in the trunk around here.

Thu, 07/23/2015 - 07:48 | 6344674 To Hell In A Ha...
To Hell In A Handbasket's picture

2007 was when I came out like a GAY BOY and proclaimed to anybody that would listen, the markets were rigged/manipulated and I felt liberated for saying so. The subsequent ridicule I received, has allowed me to now laugh at those, who laugh at me back then. The markets being rigged, was as obvious as night follows day, or a shit is followed by a piss. Plus too many friends told me of the shenanigans of their dealings in the City, to not notice it was a cesspit of lies, corruption and fraud. If lies, corruption and fraud are around, then logic dictates rigging also takes place; hence I was aware of LIBOR, FOREX and precious metals market manipulation from the very beginning. Could the J.P Morgan, London whale be any more obvious? lol

Manipulated is just the politically correct term for saying rigged. And if you want an example of lies, corruption, fraud and outright theft in context to market manipulation, then this article will explain it all, especially in the knowledge of FOREX rigging. And no, nobody went to prison for it. Enjoy the read..... http://www.forbes.com/sites/afontevecchia/2011/05/31/goldman-sachs-lost-...

Thu, 07/23/2015 - 09:19 | 6344943 Ban KKiller
Ban KKiller's picture

Corporate executives, who are rewarded for achieving EPS and share price targets, typically in the form of stock options, are also experts in the art of creating a short-term positive market impression.

 

AHH...NO shit?

Thu, 07/23/2015 - 07:47 | 6344676 p00k1e
p00k1e's picture

Markets should priced in the AM, like Gold.  The ‘Shanghai Fix.’

Thu, 07/23/2015 - 07:59 | 6344702 agent default
agent default's picture

Soc Gen to be investigated for money laundering in 3, 2, 1.

Thu, 07/23/2015 - 09:12 | 6344913 madcows
madcows's picture

Do you think they have clean hands, then?

Or was this a momentary lapse of honesty?

Thu, 07/23/2015 - 08:01 | 6344709 Beowulf55
Beowulf55's picture

Well, No SHIT, SHERLOCK............

Thu, 07/23/2015 - 08:02 | 6344714 Peter Pan
Peter Pan's picture

Instead of calling this a manipulated market, I would prefer to say that there is NO market. The whole thing is a facade, much like a bank, which is designed to suck in your savings and then let you wear the outcome when the market crashes.

Thu, 07/23/2015 - 08:14 | 6344742 THE 4th Quadrant
THE 4th Quadrant's picture

Who's down voting me? Stop this immediately you troll!

Thu, 07/23/2015 - 08:18 | 6344761 venturen
venturen's picture

#PeakPonzi

Thu, 07/23/2015 - 08:19 | 6344770 buzzsaw99
buzzsaw99's picture

the "lunatic fringe" is right about a bunch of stuff

Thu, 07/23/2015 - 08:25 | 6344784 JD59
JD59's picture

Do you think GOLD, SILVER, & PM stocks are manipulated?

10000000000000000000000000% manipulated by the f u c k sticks of the world.

Thu, 07/23/2015 - 08:38 | 6344811 Jacksons Ghost
Jacksons Ghost's picture

"there’s certainly nothing terribly unusual about a central bank propping up equities."

Except they get their money for free and can intervene in any market with that unlimited stash. Goal seek any level.

Gold and Silver use to be the obvious opt out for everyone when the Fraud go to high. I guess it still is, but they are doing their best to discourage that too.

Thu, 07/23/2015 - 08:39 | 6344817 Schroedingers Cat
Schroedingers Cat's picture

Lunatic fringe https://www.youtube.com/watch?v=sTFVMMCwsss

Lunatic Fringe
I know you're out there
You're in hiding
And you hold your meetings
I can hear you comin'
I know what your after
We're wise to you this time
(Wise to you this time)
We won't let you kill the laughter Uh huh
Uh huh
Uh huh...
Thu, 07/23/2015 - 08:48 | 6344843 curbyourrisk
curbyourrisk's picture

SocGen soon to be investigated for something illegal...  listen boys..we know what is going on out there, but you are NOT supposed to admit anything.  That will be a $300 million fine or we pull your charter.....

Thu, 07/23/2015 - 09:07 | 6344899 Omega_Man
Omega_Man's picture

SO does that mean we can all  sue them now?

Thu, 07/23/2015 - 09:17 | 6344937 Vin
Vin's picture

Ah hah!!!  I knew it!

Thu, 07/23/2015 - 09:22 | 6344953 Temerity Trader
Temerity Trader's picture

Ninety-five MILLION U.S. equity “investors” do NOT give a shit if the markets are manipulated higher…in fact they most certainly love it. And why wouldn’t they? “Damn market keeps going higher and my damn wealth is shooting higher every month…must be the Fed, I just hate them!” LMAO! No, only ZH left-behinders hate the manipulation. The rest are cashing in on their Fed-given wealth and buying new BMWs for cash. All risk is gone and the Fed bankers are patting themselves on the back at how the economy has recovered thanks to their $5 T of loose money. A 100% success…the lemmings are borrowing and buying stuff. New SUVs by the millions, houses selling at bubble prices, the markets soaring…people are thrilled. They can take some of this unearned wealth and get new boats and I-Toys…all for “free”. Good paying jobs going away? Who cares, no need to work, just pour money into the no-risk markets and the Fed guarantees you will get rich. So, why is this a bad thing, again?

Thu, 07/23/2015 - 10:57 | 6345280 Baa baa
Baa baa's picture

Not knowing where you live makes your statement a bit too broad. In my neck of the woods, folks are just trying to get by. The people who are buying while their wealth grows on a bedrock of lies, are not representative of the majority of sheep.

So, the problem is that if you aren't hooked in to the club, you suffer. Some ass getting rich off the suffering of others is a big problem that will create a mess the likes of which we have never seen.

Thu, 07/23/2015 - 12:00 | 6345538 Meat Hammer
Meat Hammer's picture

Your Normalcy Bias is showing.

Thu, 07/23/2015 - 09:25 | 6344961 Solio
Solio's picture

It is nothing to peg anything to when what is being manipulated is a game of charade from top to bottom, in nd out. People like the unbelievable, no?

Thu, 07/23/2015 - 09:35 | 6344973 nakki
nakki's picture

The "market" has always been manipulated. This has been going on forever. Who was the first chairman of the SEC? Joseph Kennedy. He was appointed because he new ever trick in the book to manipulate the "market" because he had used them. How long have governments been cooking every data point and all the numbers they put out under the guise of innovation. Change the way you figure out the numbers if you don't like them. Change what you put into your numbers if you don't like them. 

When they did away with mark to market it was just another way that fraud was made legal. The only people that say the "market" has been a true market are making a living out of convincing the sheep that its not manipulated.

I had a conversation with a very intelligent very successful trader back in the early part of 2009. I told him within a year the market would be going up and the talking heads would be back to their same old shit. For all the hand wringing and talk of how things should change when the market was on the lows, it would be business as usual a year later. He thought I was insane. He thought it was the end. Seems like I was right. 

I never thought that the shitshow would go on for as long as it has, then again look at Japan. 

Thu, 07/23/2015 - 09:28 | 6344977 Evil Franklin
Evil Franklin's picture

Obviously, we are reaching the pinnacle of world decadence.  No longer is the truth being hidden from the peons.  The .000001% that rule the world know or at least believe that nothing can be done to overthrow their position.  They created the triangle to fully explain how things work.  The peons just wouldn't allow themselves to believe.  Even if violence should erupt the world over they would simply wait for the outcome on their islands of leisure.  As 95% of the worlds population turns to worm food they will smoke their cubans and languish in their comforts. 

Thu, 07/23/2015 - 10:48 | 6345243 Baa baa
Baa baa's picture

Hence, a thorough and complete list of all these "Islands" of relative tranquility while Rome burns, should be quite useful when the "Lunatic Fringe" begins exacting retribution.

Thu, 07/23/2015 - 18:47 | 6347067 honestann
honestann's picture

The top predators-that-be correctly realized that humans are MORONS and will not act against them.

Even when the SHTF and many humans go insane, look what they do?  They loot and burn local stores.

Humans are too stupid and too lame to take wise actions.

If humans weren't this way, the predators-that-be would have been hung decades ago.  No correct that.  Centuries ago.  No correct that.  Millennia ago.

If you are sane, get the hell outta dodge.  FAR outta dodge.

AND DO IT NOW.

Thu, 07/23/2015 - 09:30 | 6344983 fromthinair
fromthinair's picture

SocGen's admission is something like this: after everyone, who could, manipulated everything, they could, there is nothing meaningful left for manipulation. SO this is just a heads up; we will now manipulate the fringe. They are telling that let alone capitalism, the scope for even the crony capitalism seem to be over, at least as far as they can see.

Thu, 07/23/2015 - 09:46 | 6345031 lbrecken
lbrecken's picture

Every asset class being manipulated except oil right Tyler?  Joke

Thu, 07/23/2015 - 09:52 | 6345049 roadhazard
roadhazard's picture

So you needed a tin foil hat to believe markets are manipulated? Give yourselves a big hand for being ahead of the rest of us.

Thu, 07/23/2015 - 10:01 | 6345063 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

I DID NOT sign off on Zero Hedge using the picture of me and my hat (proprietary design by the way)!!  OK no big deal, but next time just ask.

Thu, 07/23/2015 - 12:44 | 6345729 mendigo
mendigo's picture

Got to have that hat.
Can order on amazon and have it droned?

Thu, 07/23/2015 - 13:52 | 6345945 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

Here is an open source video so you can make your own.  Your welcome.          https://youtu.be/Hr6rp0HYgQ8?t=4m49s

Thu, 07/23/2015 - 14:19 | 6346034 windcatcher
windcatcher's picture

Todays, world depression is designed, created and caused by: The criminal banksters and their government cronies that were not prosecuted in 2008.

“The economic crash of 2008” is the wrong context and a brainwash mental block.

“The successful bankster American mortgage crime of 2008 that crashed the American and world economy” should begin any conversation on the crash of the economy in 2008.

What was the cause of the 2008 crash? Was it bankster fraudulent mortgage loans and MERS fraud from 2000+ that was fraudulently spread around the world that finally caught up to reality in 2008?

Were the fraudulent bankster criminals and their fascist government cronies sent to prison? NO! The criminals black-mailed and bribed Congress to bail their dirty paper out with 700 billion dollars instead of throwing the criminals in prison and bailing out the American home owner for between 1 billion and 50 billion dollars! The criminal bankster crime spree should have ended in 2008.

Where did Congress get the 700 billion dollar bail out? Well, they borrowed the money from the banksters! Ha. Ha. Ha.

 

http://necsi.edu/news/2011/bailouts.html

 

The bankster criminals went on to create the derivatives scam that now looms over the world today at a godzillion dollars and riggin all the markets!

Do NOT follow this link or you will be banned from the site!