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What If The "Crash" Is As Rigged As Everything Else?

Tyler Durden's picture




 

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

Take your pick--here's three good reasons to engineer a "crash" that benefits the few at the expense of the many.

There is an almost touching faith that markets are rigged when they loft higher, but unrigged when they crash. Who's to say this crash isn't rigged? A few things about this "crash" (11% decline from all time highs now qualifies as a "crash") don't pass the sniff test.

Exhibit 1: VIX volatility Index soars to "the world is ending" levels when the S&P 500 drops a relatively modest 11%. The VIX above 50 is historically associated with declines of 20% or more--double the current drop.

When the VIX spiked above 50 in 2008, the market ended up down 57%. Now that's a crash.

 

Exhibit 2: The VIX soared and the market cratered at the end of options expiration week (OEX), maximizing pain for the majority of punters. Generally speaking, OEX weeks are up. The exceptions are out of the blue lightning bolts such as the collapse of a major investment bank.

Was a modest devaluation in China's yuan really that unexpected, given the yuan's peg to the U.S. dollar which has risen 20% in the past year? Sorry, that doesn't pass the sniff test.

 

Exhibit 3: When the VIX spiked above 30 in October 2014, signaling panic, the Federal Reserve unleashed the Bullard Put, i.e. the Fed's willingness to unleash stimulus in the form of QE 4. Markets reversed sharply and the VIX collapsed.

Now the VIX tops 50 and the Federal Reserve issues an absurd statement that it doesn't respond to equity markets. Well then what was the Bullard Put in October, 2014? Mere coincidence? Sorry, that doesn't pass the sniff test.

Why would "somebody" engineer a mini-crash and send volatility to "the world is ending" levels? There are a couple of possibilities.

1. The Shock Doctrine. Naomi Klein's landmark study of how manufactured crises are used to justify further consolidation of power, The Shock Doctrine: The Rise of Disaster Capitalism, provides a blueprint for how financial crises set the stage for policies that extend the power of central and private banks and various state-private sector players.

A soaring VIX and sudden crash certainly softens up the system for the next policy squeeze.

2. A "crash" engineered to set up a buying opportunity for insiders. When easy gains get scarce, what better way to skim a quick 10% than engineer a "crash," scoop up shares dumped by panicked punters and momo-following HFT bots spooked by "the world is ending" VIX spike, and then reverse the "crash" with another round of happy talk?

3. Settling conflicts within the Deep State. I have covered the Deep State for years, in a variety of contexts--for example:

Is the Deep State Fracturing into Disunity? (March 14, 2014)

The Dollar and the Deep State (February 24, 2014)

Surplus Repression and the Self-Defeating Deep State (May 26, 2015)

Without going into details that deserve a separate essay, we can speculate that key power centers with the Deep State have profoundly different views about Imperial priorities.

One nexus of power engineers a trumped-up financial crisis (i.e. a convenient "crash") to force the hand of opposing power centers. As I have speculated here before, the rising U.S. dollar is anathema to Wall Street and its apparatchiks, while a rising USD is the cat's meow to those with a longer and more strategic view of dollar hegemony.

Take your pick--here's three good reasons to engineer a "crash" that benefits the few at the expense of the many.

 

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Wed, 08/26/2015 - 08:54 | 6472235 clooney_art
clooney_art's picture

 You got that right. Everything is rigged. Stage managed on a central scale. They are even preparing what nonsense to say after a sizable decline in the market and it won't make any sense.

Wed, 08/26/2015 - 08:58 | 6472255 Stackers
Stackers's picture

Yes it is rigged ..... and it is a very very old game plan

“The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered. ”

Wed, 08/26/2015 - 09:02 | 6472274 SimplePrinciple
SimplePrinciple's picture

The plan?  After a much larger stock drop, .gov rides to the rescue of retirees by confiscating their accounts and replacing them with Treasuries that cannot otherwise be easily marketed.  Of course, this replacement will be done in a manner that promotes Social Justice, aka Robin Hood.

Wed, 08/26/2015 - 09:04 | 6472285 Winston Churchill
Winston Churchill's picture

How else did you think the RedRes was going to get rid of them ?

No way were they going to be the bagholders.

Wed, 08/26/2015 - 09:14 | 6472361 Fester
Fester's picture

Crash --> War --> New .Gov --> Moar Power

Wed, 08/26/2015 - 09:22 | 6472401 remain calm
remain calm's picture

Everything is managed for control. They think they have control and can manage everything. They can't and then they lose control. They will lose control again. But the loss of control is not staged. Again, they think they can manage eveything. Their models fail. We are about to see a big failure. Some of you need to add another layer of tin foil added to your head. They will manage after the failure, again, because they think they know what they are doing.

Wed, 08/26/2015 - 09:29 | 6472459 Headbanger
Headbanger's picture

Oh yeah... EVERYTHING is rigged now

So we can't blame ourselves for any of it.

Duhhhh.

It's the fucking greed of all the Muppets to blame as well.

Wed, 08/26/2015 - 09:52 | 6472573 Captain Debtcrash
Captain Debtcrash's picture

I wrote on the "planned crash" scenario several months ago.  Why would the fed raise rates into poor macro economic conditions, officially no inflation, with bubbles popping throughout the world, if not to cause or exacerbate a crash, all to allow them to try some new policy tools.  After all the st Louis fed did come out and say QE is ineffective. I think they really want to ban cash and push rates significantly negative.  Not possible under current statute, but that's easy enough to change with the politicians shitting themselves. 

Wed, 08/26/2015 - 10:03 | 6472670 BKbroiler
BKbroiler's picture

noonegivesashitaboutyourblog.com

Wed, 08/26/2015 - 10:33 | 6472843 WordSmith2013
WordSmith2013's picture

Yes, the crash will be totally engineered just like 2008.

 

http://cosmicconvergence.org/?p=8811

"Debt Default and Dollar Meltdown,
Derivative Explosion and Deflation Implosion
are Timed According to a Controlling Calendar"

Wed, 08/26/2015 - 12:36 | 6473516 Herd Redirectio...
Herd Redirection Committee's picture

So many people were expecting 'something' to happen in September, that not only did they push the date up (of the initial crash, if not the main crash), they (intelligence agencies) released a SLEW of rumors...

Comets striking the Earth in September!  Extended black outs/power outages (is black out racist?).  Hoover Dam getting blown up.

All just so people would be confused and not know what the F*** will happen.  Counterintelligence.  Disinformation.  Got to love it!

Wed, 08/26/2015 - 13:09 | 6473661 So Close
So Close's picture

If?

Wed, 08/26/2015 - 13:29 | 6473733 whotookmyalias
whotookmyalias's picture

If everything is rigged, crashes are rigged too. It's not complicated or mysterious.

Wed, 08/26/2015 - 14:06 | 6473881 g speed
g speed's picture

and the biggest rig of all ---gravity--its forcing things to go in its direction and cannot be controlled and its a big secret how it works and we are all at its mercy and are DOOOOOMED---LOL    deal with it

Wed, 08/26/2015 - 15:05 | 6474209 BLOTTO
BLOTTO's picture

I wish it was just the markets.

.

Our WHOLE LIFE is rigged.

.

'Life' - one giant cosmic lie.

.

Now what?

Wed, 08/26/2015 - 10:30 | 6472828 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

This is a fascinating perspective to be published on Zero Hedge, of all places.

Wed, 08/26/2015 - 13:14 | 6473679 Iudaea Delenda Est
Iudaea Delenda Est's picture

You're kind of a cunt - needlessly most of the time, aren't ye?

Wed, 08/26/2015 - 13:16 | 6473685 HonkyShogun
HonkyShogun's picture

Then stay over at your Puffington Post and spare us.

Wed, 08/26/2015 - 14:26 | 6473960 libertrue
libertrue's picture

QE is ineffective at boosting stimulus, but it is still quite effective at buying back treasury bonds that China is dumping like a bad prom date. They should add a reason 4, if the VIX going to 30 in Oct 2014, kept the Fed from hiking rates and prompted them to suggest QE4, which still hasn't come about, why not just attempt the same thing again, just days before the Fed was planning on raising rates? If you had an army of high-frequency traders, why not force a crash to scare the Fed into making policy decisions that help your bottom line?...queue Norm MacDonald...Or so the Chinese would have us believe...

Wed, 08/26/2015 - 14:41 | 6474034 Captain Debtcrash
Captain Debtcrash's picture

They certainly may try QE again, but I think the fed wants some new toys to play with.  

Wed, 08/26/2015 - 15:20 | 6474320 caconhma
caconhma's picture

Very soon FED will own a half of the entire stock market with a socialist dream coming true.

Wed, 08/26/2015 - 14:26 | 6473962 libertrue
libertrue's picture

QE is ineffective at boosting stimulus, but it is still quite effective at buying back treasury bonds that China is dumping like a bad prom date. They should add a reason 4, if the VIX going to 30 in Oct 2014, kept the Fed from hiking rates and prompted them to suggest QE4, which still hasn't come about, why not just attempt the same thing again, just days before the Fed was planning on raising rates? If you had an army of high-frequency traders, why not force a crash to scare the Fed into making policy decisions that help your bottom line?...queue Norm MacDonald...Or so the Chinese would have us believe...

Wed, 08/26/2015 - 09:28 | 6472462 kliguy38
kliguy38's picture

and thats my point Remain calm..........WHAT IF IT ISN'T CONtrolled.

Wed, 08/26/2015 - 09:46 | 6472570 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

 

 

Regardless of whether every gyration is choreographed by TPTB, the take away should be that those closest to the fount of knowledge (riding in the engine) get their thirst

slaked first, and those furthest away (riding in the caboose) get parched, shrivel up, and mummify.  Those in the know feed on those in the dark, period.  The ability to be

nimble, get access to insider info., and adjust accordingly is  the next best thing to controlling individual events.  It's all about the long term trajectory of NWO goal seeking

and having a tinfoil yarmulke.

Wed, 08/26/2015 - 14:10 | 6473892 g speed
g speed's picture

proving again the POWER of knowledge and the privalige of the secret sign and how knowing the secret determines your self worth----such foolishness is not for grownups --really 

Wed, 08/26/2015 - 10:54 | 6472574 greyghost
greyghost's picture

so the two minds finally write a good article.  been having these exact thoughts since monday's crash and miracle levitation act. how many stop losses were triggered on that rollercoaster?

see the next article about the bet on the vix on friday

Wed, 08/26/2015 - 11:30 | 6473199 Carpenter1
Carpenter1's picture

If they can make it go up, they can sure as shit make it go down. Time to wake up

Wed, 08/26/2015 - 09:55 | 6472621 Crash N. Burn
Crash N. Burn's picture

"They will manage after the failure, again, because they think they know what they are doing."

Could be because "they" have done it before. People should be taught who "they" are

 "The Rothschilds were universally acknowledged as the wealthiest clan on the planet in the 19th century. They never lost that wealth. We simply lost all knowledge of it. The House of Rothschild has effectively erased itself from our (so-called) history books. That takes power.

Are children taught in our classrooms that most of the (endless) wars between European powers during the 19th century were examples of House Rothschild already “playing” the governments of Europe against each other, like puppets? Are the children taught that a basically unknown cabal of bankers created the Bank for International Settlements in the early part of the 20th century, so that these Western bankers could do the money-laundering necessary to allow Western industrialists to supply armaments to the Third Reich?

They certainly aren’t taught that one of those “industrialists” – Prescott Bush – was convicted of “trading with the Enemy”. Because if they had been, clearly it would not have been possible for both his son and grandson to be elected as presidents of the United States, where they could serve the bankers.

Postulating a group of ringleaders for this banking crime syndicate other than House Rothschild is problematic. It involves manufacturing an entire mythology around such hypothetical ringleaders, whereas with this clan of megalomaniacs, the historical, financial, and political context is already in place.

Their wealth is undeniable. Their intentions are unequivocal. The amoral malice they hold toward the rest of humanity is documented, historical fact."

 

How Western Governments Will Steal Your Land, Part III

 

"They" are Rothschild!

"People without homes will not quarrel with their leaders."

-          The Bankers Manifesto of 1892

 

"Simply put, there was/is no other clan on the planet that already possessed the wealth and power to make the pledges contained in The Bankers Manifesto of 1892, in 1892 – and then to (finally) pursue that crime-against-humanity to (near) fruition, in 2015."

 

Wed, 08/26/2015 - 11:05 | 6473042 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

OK sir, that'll be enough candor out of you.  You're Home Depot Nail Gun seminar commences tomorrow at noon,

if you are unable to attend then a house call will be arranged.  Your new code name is "Plywood"

Wed, 08/26/2015 - 12:54 | 6473595 Herd Redirectio...
Herd Redirection Committee's picture

This cabal already had $1 billion dollars (or Francs) back in 1850!  1850!  Do so preliminary calculations of how much that wealth would grow to, by 2015, at even 2$ or 3% interest.

Wed, 08/26/2015 - 13:44 | 6473792 Uchtdorf
Uchtdorf's picture

I'll take up your challenge using the tried-and-tested Rule of 72.

2%

1850 $1B

1886 $2B

1922 $4B

1958 $8B

1994 $16B

2030 $32B

 

3%

1850 $1B

1874 $2B

1898 $4B

1922 $8B

1946 $16B

1970 $32B

1994 $64B

2018 $128B

So unless you're going to tell me that the $1B in 1850 existed in the form of very rare gold coins, I don't think you need to be too concerned. The US alone spends $128B in a very short time. It seems a billion bucks ain't what it used to be. 

Wed, 08/26/2015 - 11:16 | 6473126 HowdyDoody
HowdyDoody's picture

For real chutzpah, they have put their supprt behind a Romanov to claim the throne of Russia.

http://fortruss.blogspot.co.nz/2015/07/the-rothschilds-are-preparing-the...

 

 

Wed, 08/26/2015 - 11:43 | 6473266 SMG
SMG's picture

You're exactly right, and I hope when there are angry mobs in the streets, people who know what the heck is going on, get out there and help them point their rage in the right place.

Wed, 08/26/2015 - 15:24 | 6474342 jcdenton
jcdenton's picture

This is your Red Shield. They do nothing. They can do nothing without permission ..

To those who insist that Jews run the world, I say okay, but only by the permission and appointment of Rome.

 

In 1814, however, the Jesuits turned anti-semitic. I believe this was in order to mask their collusion with the money power operated by the House of Rothschild, “guardian of the Vatican Treasury.”

 

http://tuppersaussy.com/museum/html/writings/articles/dialvol1no1.html

 

Understand what a fiduciary is. Do look that up in your best legal dictionary ..

 

The house of Rothschild is bound by fiduciary duty to facilitate the Jesuit General's needs. According to Encyclopedia Judaica, the Rothschilds are “Guardians of the Vatican Treasury.”

 

Congress complied on April 6, the Guardians of the Vatican Treasury cranked out the credit (through the Rothschilds' brand new Federal Reserve), and over the next year and a half, more than 364,000 American lives were sacrificed (out of 4,355,000 mobilized) to Ledochowski's objective of destroying the Reich and replacing its Protestant Kaiser with a charismatic dictator.

 

http://tuppersaussy.com/museum/html/writings/articles/15brienner.html

 

Okay, who wrote the seminal Secrets of the Federal Reserve, before Griffin's tome? That would be right. Eustace Mullins ..

 

"It is difficult to restrain the enthusiasm which RULERS OF EVIL engenders in the reader. Saussy gives us the essential knowledge for which we have been waiting these last six thousand years."

~ Eustace Mullins

 

http://tuppersaussy.com/museum/html/writings/roe/roe.html

 


Wed, 08/26/2015 - 12:07 | 6473399 Luc X. Ifer
Luc X. Ifer's picture

Who the fuck in his mind doubts it, retards?! 

Wed, 08/26/2015 - 14:40 | 6474029 Antifaschistische
Antifaschistische's picture

yah....like 16k now on the DOW is NOT being goal-seeked by the PPT.   lol

Wed, 08/26/2015 - 09:14 | 6472363 Motasaurus
Motasaurus's picture

The Banksters That Be only have a month left to make money off each other before they have to forgive each other their debts. This "crash" is just profit taking and positioning - the banksters are unloading their debt onto non-banksters: people whose debts they don't have to forgive.  

Wed, 08/26/2015 - 09:30 | 6472480 GeezerGeek
GeezerGeek's picture

I thought that Robin Hood was anti-oligarch, not a redistributionist progressive slimeball. His opposition was the government (Sheriff of Nottingham) and its cronies, not some overly successful capitalist. The money given to "the poor" was remuneration for excessive taxation. Get the story right.

Wed, 08/26/2015 - 10:28 | 6472821 frankly scarlet
frankly scarlet's picture

S.P. Yes...there is an estimated 4 trillion locked away in the various pension plans that the Fed would like to get their hands on and this "swap" would bring the Fed's balance sheet down to previous levels.

Wed, 08/26/2015 - 13:01 | 6473629 KnuckleDragger-X
KnuckleDragger-X's picture

It really doesn't matter if it's rigged or not, it'll suck for the vast majority of people. You can blame it on anybody you would like, but doing something about it is the hard part. History is replete with people who tried to break the system in order to take control and sometimes it works, but a lot of the time it doesn't, at least in the in the long run. Just ask Robespierre on his way to his own guillotine.....

Wed, 08/26/2015 - 09:07 | 6472308 pods
pods's picture

They aren't that powerful. Why give them the benefit of the doubt?  They (if there really is a they that has control) would like nothing more than for you to sit home whimpering, worried about how much control "they" have.

Macro has been in the shitter for years.  China was bubblicious and bound to crack.

The reason why I know this was no engineered event is the damage control I have seen due to it. Even the lowliest podunk local talk show host was able to have on some talking head who was talking about why this was just an over reaction and macro is golden and our economy is the cat's meow.

Don't buy into it.

And fuck numerology too.  The only way where they can set the closing price is if we are all stuck in a damn powerplant with tubes coming out of our body.

If that is the case, where the fuck are you Morpheus?

pods

Wed, 08/26/2015 - 09:17 | 6472383 Beam Me Up Scotty
Beam Me Up Scotty's picture

I'm not so sure.  This article might be spot on.  Consider this:

Federal Reserve can print and create INFINITE digital and physical dollars.  With infinite dollars, they can control EVERYTHING.  Both UP and DOWN.  We can't audit the Fed, how do you know their balance sheet is really 4 trillion?  Because they say so?  They could literally decide the prices of every single thing in dollar terms with unlimited dollars at their disposal. 

Wed, 08/26/2015 - 10:52 | 6472955 Sir SpeaksALot
Sir SpeaksALot's picture

exactly, they could buyout all stocks 10 times, and how would we know who is buying? they could just put it from "one pocket to the other". their balance sheet could easily be 40 trillion or 400 trillion, or t s all staged.

Wed, 08/26/2015 - 11:45 | 6473284 Not My Real Name
Not My Real Name's picture

At some point, printing an endless sea of dollars (physical or digital) destroys the only thing that gives those dollars value: confidence in the currency. When that happens, the game is over.

Wed, 08/26/2015 - 12:03 | 6473379 NihilistZero
NihilistZero's picture

Had to down arrow you Beam. There are just totally moving parts in world politics and the world economy to exact such a precise level of control. The idea that all the bankers are on the same page is specious. In so much as their interests may converge I'm sure Deutsche Bank and the Bank of England will exert monetary power for the same specific goals. Once their interests diverge I doubt they pay each other even the slightest consideration. This is the one saving grace the masses have. The greed of the various oligarchies will always prevent a perfect union among the ruling class.

Wed, 08/26/2015 - 12:08 | 6473400 Chupacabra-322
Chupacabra-322's picture

The vast majority of ZH's especially the veterans here understand fully that there are no more "Bear or Bullish" markets. There's only Fascism & Ponzi.

"If central banks purchase stocks in order to support equity prices, what is the point of having a stock market? The central bank’s ability to create money to support stock prices negates the price discovery function of the stock market."
-Dr. Paul Criag Roberts

"These questions came to mind when we learned that the central bank of Switzerland, the Swiss National Bank, purchased 3,300,000 shares of Apple stock in the first quarter of this year, adding 500,000 shares in the second quarter. Smart money would have been selling, not buying.

It turns out that the Swiss central bank, in addition to its Apple stock, holds very large equity positions, ranging from $250,000,000 to $637,000,000, in numerous US corporations — Exxon Mobil, Microsoft, Google, Johnson & Johnson, General Electric, Procter & Gamble, Verizon, AT&T, Pfizer, Chevron, Merck, Facebook, Pepsico, Coca Cola, Disney, Valeant, IBM, Gilead, Amazon."

-Dr. Paul Craig Roberts

reply

Wed, 08/26/2015 - 13:42 | 6473674 Beam Me Up Scotty
Beam Me Up Scotty's picture

No worries NZ.  I am just throwing out a theory.  Maybe its fact, maybe its not.  All I am saying is, I can conjur up a scenario where they can control the price of everything, in both directions.  And unless someone can actually prove how many dollars have been created, they can't prove me wrong either.  They can continue to do such a thing, until there are dollars everywhere, even when they try and claim otherwise.  If people believe there are only 4 trillion dollars in circulation, but there are really 40 trillion, then they can get away with exactly what I have described.

Wed, 08/26/2015 - 15:13 | 6474260 NihilistZero
NihilistZero's picture

I get what you're saying.  I'd counter argue it's more like a butterfly effect.  They don't know exactly where the hurricane will land but since the released the butterfly and know exactly when it flapped it's wings, they will always be in the most advantageous position to profit from the destruction.  I think you'd be hard pressed to show a reasonable scenario where they can control world markets prices to the dollar.  It's actually much easier to let the human elements work and then react.

It's the "Brave New World VS 1984" Dystopia argument.  The system which can bend the most has the far greater chance of maintaining power.  We can observe this in the political systems that have lasted the longest.

Wed, 08/26/2015 - 12:16 | 6473424 Implied Violins
Implied Violins's picture

Had to down arrow you, Nihilist. There is just too much evidence that this whole shitshow is contrived. Don't forget the saying, 'create order out of chaos.' That's exactly what is going on here; at the highest level this is all planned, even the 'chaos.' It's meant to keep us from focusing on what is really going on. The Hegelian Dialectic at work.

http://redefininggod.com/the-rockefeller-plan-for-the-brics-new-world-or...
http://redefininggod.com/understanding-the-nwo-strategy/

Wed, 08/26/2015 - 12:58 | 6473618 Herd Redirectio...
Herd Redirection Committee's picture

What they specialize in is controlling both sides in a conflict.  BOTH SIDES.  Get it?

So yes, there are groups at odds with each other.  Sure.  But both are having their strings pulled by a single, co-ordinated group of 'puppeteers'.

Divide and conquer...  And what better way to control the outcome of any given conflict?

Wed, 08/26/2015 - 13:25 | 6473720 NihilistZero
NihilistZero's picture

Your theory is not compatible with the dystopia conspiracy Beam put forward.  I tend to agree with your position.  Mainly because the natural outcome of that thesis, chaos at varying levels for all but the elite of the elite, is what we have been witnessing forever.

Wed, 08/26/2015 - 13:36 | 6473766 actionjacksonbrownie
actionjacksonbrownie's picture

So you are saying all the major Central Banks are ultimately independant of one another? I personally would like some confirmation of just who controls the major Central Banks. China remains a big question mark to me, but I can't see Japan or Germany being very independant as both were under u.s. domination after wwII and I have seen no signs of that domination slipping. And I have to think that the London Bankers and the fed are joined at the hip. That leaves only minor Central Banks which may or may not be independant, but are largely irrelevant, as they are completely at the mercy of the Major Central Banks.

Wed, 08/26/2015 - 13:49 | 6473802 bsdetector
bsdetector's picture

If the velocity is increased does that provide more opportunity to skim? I'm recalling Cougar's post about shaving nickels.

Wed, 08/26/2015 - 09:37 | 6472517 messymerry
messymerry's picture

Yo pods, next time you get a bag of M&Ms, eat the red ones first,,,

;-D

I don't think the Skxawng in charge have the organizational capability to pull off an event of this magnitude with any reasonable expectation of success.  They manipulate where they can and surf the waves just like the rest of us...

Wed, 08/26/2015 - 10:03 | 6472667 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

 

 

China is a centrally controlled economy.  Who allowed them to become bubblicious? and to what ends?  Who made money?  Who lost money?

With the announcement of 'Merika's "ownership society", a huge housing bubble was blown, then popped.  Who's to blame?, the ignorant borrowers

(akin to 4 year old climbing on the counter to get to the cookie jar), or the lenders to the lenders (akin to the parent standing back ,watching

the 4 year old scaling the precarious chair to get to the cookie jar 30 minutes before suppertime.)? 

When the kid falls, busting the cookie jar,  the parent rushes in eats the cookies, then raids the kids piggy bank to pay for the jar, then charges the

kid for the band-aids for the kids knees and elbows.  DISASTER CAPITALISM.

Wed, 08/26/2015 - 10:24 | 6472792 pods
pods's picture

Most of the actions taken by government are taken to increase debt.

In the USA, the housing bubble was blown because of the dumb thought of "everyone should own a home" or, as the bankers like to think of it "Everyone should have a mortgage"

Same shit with subprime auto loans, student loans. All these things involve creating massive new conduits for debt creation.

If you don't exponentially grow, you blow.

But, when these bubbles get blown, the extra $$ created has to go somewhere. And it chases yield that is greater than the inflation the debt creation creates.

Before you know it BOOM.

 

Wed, 08/26/2015 - 11:57 | 6473354 MaxMax
MaxMax's picture

Debt is an exponential function because of interest. Most of the money in existence comes from fractional reserve lending.  If the debt doesn't keep increasing, someone isn't getting paid back.  That's a fundamental problem with the system as we know it.  It can increase for a long time, but eventually, it becomes unsustainable.  And that's just talking about easily identifiable debt.  Add in things like pension promises, future retirement benefits, etc, and the problem is ecven worse.

Wed, 08/26/2015 - 12:36 | 6473508 pods
pods's picture

Yep, I talk about that below.

That is why I doubt the all powerfulness of the "man behind the curtain" (apt analogy) as if they were that smart and powerful, they would design a system that wouldn't implode and ruin their skim.

pods

Wed, 08/26/2015 - 13:49 | 6473810 MaxMax
MaxMax's picture

I think you are correct that there is no "man behind the curtain" though lots of different attempts to manage things from lots of entities. 

There are inside deals, corrupt officials, front running brokerages, cronyism, etc.  For those playing in the stock and bond casino, your dealer will most certainly try to take advantage of any information he can against you whether it be front running, looking at your stops, analyzing past trading patterns, deciding how to route your trade to make as much money off you, etc.

Wed, 08/26/2015 - 14:20 | 6473938 g speed
g speed's picture

Bingo----its the Keystone cops on a global scale---

Wed, 08/26/2015 - 15:50 | 6474502 bid the soldier...
bid the soldiers shoot's picture

The topic is rigging, pods, so why was only the housing bubble rigged?  Couldn't the housing bubble have been rigged to collapse the mortgage backed security multi trillion dollar market?  To destroy the world economy, while leaving the US in the catbird seat?  Now with its strong dollar, its all-time high stock market, and, to the wonder of all, its printing press

 

Why?  Perhaps there was an understanding that even with oil shale,  peak oil would come by 2040 or 2050 or 2060 and and when it finally came it would be the end of American Capitalism.

So why not hasten the day and have more control over it?

 

Greenspan was asked to accomplish this goal and he spun subprime mortgage sales and bust into the world we have today: the brink of war in Ukraine and the South China Sea.

 

And you don't have to look very hard to see how beholden the allies are to the US.

Immensely riggable.  Very neocon.

 

 

Wed, 08/26/2015 - 11:34 | 6473221 Tarzan
Tarzan's picture

I can't believe anyone who reads zerohedge would have any question that "they" are orchestrating booms and busts to rape the muppets, or that "they" exist.

Give me the list of every person who owned Apple at $92 Monday and I'll tell you who's raping the world!

Wed, 08/26/2015 - 09:09 | 6472315 tc06rtw
tc06rtw's picture

I truly wish it were all rigged… There could be some comprehensible intelligence behind all this disaster

Oh, no -- They were smart enough to wreck the machine in stripping out all its wealth, but  THEY ARE NOT  SMART ENOUGH TO UN-WRECK IT!

Wed, 08/26/2015 - 09:17 | 6472382 pods
pods's picture

You blow a bubble.

As the bubble gets bigger, you know it is getting weaker.  But a crowd cheers you to keep going cause they love the bubble.

So you keep blowing.

Can someone step in and buy some futures to sway the futures market, sure.

But the problem is that the price of credit is below market.

When that happens, you get too much credit.

Too much credit sloshes around wreaking havoc on all things of substance or fancy that might increase your worth (in your mind).

Now, crashes are a known side effect of the system, and they do take advantage of it, but they are not planned.

pods

Wed, 08/26/2015 - 11:50 | 6473314 Tarzan
Tarzan's picture

Sorry pods, that's just bull!  They flushed the muppets out of Apple stocks and made a cool 10% in a couple hours, on purpose!

Do you believe even a single muppet was able to buy Apple at $92 Monday?

They front run our trades on the way up and down and make billions from the moves with precision timing from their HFTs while the muppets are stopped out of the most lucrative trades, fighting over the crumbs...

Wed, 08/26/2015 - 12:22 | 6473455 pods
pods's picture

Frontrunning is a skim. It isn't an all powerful "they" controlling and setting a price index.

They make more on the volatility, but they do not control the markets per se.

They do control the amount of fungible credit, so they can blow credit bubbles. Which creak and blow. Allowing them to cash in on the action.

There is a huge difference between being able to front run market moves and make $$ and setting market prices.

pods

Wed, 08/26/2015 - 12:45 | 6473551 Tarzan
Tarzan's picture

Crashes have been orchestrated on purpose for hundreds of years!

Your right that they are not all powerful, cant control things, and will fail in spectacular fashion eventually because of credit expansion.

But it's an age old known cause & effect that they perpetuate on purpose.  Orchestrating crashes included!

It is alleged Economics is this mysterious phenomenon that nobody can define, on purpose, to hide the obvious scam - obvious to those who read history and are not blinded by the days propaganda.

Wed, 08/26/2015 - 09:19 | 6472391 Payne
Payne's picture

The horrible secret is that no one is manipulating the system.  Instead it is run by the Greedy self interest of multiple parties a conspiracy of sorts with no real organization.  The TARP program  is an excellent example of bubblegum and bandaid repairs.

Wed, 08/26/2015 - 09:44 | 6472560 Usurious
Usurious's picture

the system was designed to crash............all debt money systems are.....they knew in 1913 and they know it now

Wed, 08/26/2015 - 14:33 | 6473986 g speed
g speed's picture

the system was never designed-- it evolved along with things like scientific discovery.  its a patchwork of legalese and extortion using secrecy, disinformation, outright criminality (including murder) and confusion to make itself important ---- those who believe will be controlled --others not so much-- 

 

Wed, 08/26/2015 - 17:34 | 6475008 Raging Debate
Raging Debate's picture

G-Speed - Sure, they are part.of.evolution like wolves and rabbits. One cannot evolve without the other. The central bank model exacerbates slight boom and busts into mountains and valleys. The centerpiece is.control of the currency and interest rates. 

Wed, 08/26/2015 - 09:15 | 6472370 DeadFred
DeadFred's picture

The UN will be meeting up next month to figure out how to replace the worthless Agenda 21 with the next step, what a wonderful time to have the markets in turmoil. Maybe we should schedule the Pope to talk to them and Congress about his vision of replacing evil capitalism with a benevolent world-wide central control, oops they already have him scheduled? My question is what happens if you hold a 'fake' meltdown and something real happens when volatility is already really high? Nothing like people playing Russian roulette only they point the gun at your head, not theirs.

Wed, 08/26/2015 - 09:34 | 6472504 PTR
PTR's picture

Russian roulette only they point the gun at your head, not theirs.

 

That, sir, is an awesome quote and should be used repeatedly.

Wed, 08/26/2015 - 12:48 | 6473560 Slowdrip
Slowdrip's picture

Excellent as usaul DF, nice to see your smiling face.....

Wed, 08/26/2015 - 09:33 | 6472428 ThroxxOfVron
ThroxxOfVron's picture

IF it is possible to move specific securites higher via HFT/deliberate buying/spoofing/etc. and concerted buying by institutions and/or the fabled PPT, then it is only logical to assume that the same activities and entities can move those same securites lower via HFT/spoofing/deliberate selling/naked shorting/etc...

I believe that the desks sell what they do not have and buy with funds that do not exist/re-hypothecated client funds ( 'MF Global-ation' ) interbank and/or inter-affiliate leverage.

NON DELIVERY?   WHAT DOES THAT MEAN?

"


"This Act (the Federal Reserve Act, Dec. 23rd 1913) establishes the most gigantic trust on earth. When the President signs this bill, the invisible government by the Monetary Power will be legalized. The people may not know it immediately, but the day of reckoning is only a few years removed. The trusts will soon realize that they have gone too far even for their own good. The people must make a declaration of independence to relieve themselves from the Monetary Power. This they will be able to do by taking control of Congress. Wall Streeters could not cheat us if you Senators and Representatives did not make a humbug of Congress... The greatest crime of Congress is its currency system. The worst legislative crime of the ages is perpetrated by this banking bill. The caucus and the party bosses have again operated and prevented the people from getting the benefit of their own government."

 


"The new law will create inflation whenever the trusts want inflation...they can unload the stocks on the people at high prices during the excitement and then bring on a panic and buy them back at low prices...the day of reckoning is only a few years removed."

 

"When the President signs this act [Federal Reserve Act of 1913],
the invisible government by the money power -- proven to exist
by the Monetary Trust Investigation -- will be legalized.
The new law will create inflation whenever the trusts want inflation.

***  From now on, depressions will be scientifically created.  ***"

-Senator Charles A. Lindbergh

Wed, 08/26/2015 - 09:26 | 6472431 ZH Snob
ZH Snob's picture

it wasn't and will not be completely rigged, but is instead heavily influenced to move in a desired direction.  market is the ocean upon which the ships of state travel.  they can steer the ship out of a storm or take it to safer harbors, but they can't significantly change the ocean or the waves.

Wed, 08/26/2015 - 09:55 | 6472628 doctor10
doctor10's picture

Ya.  they need to jam the dollar down a notch or two so they can proceed with their interest rate rise in September-which may well kick the legs out from under everything

Wed, 08/26/2015 - 11:48 | 6473301 undercover brother
undercover brother's picture

no one says the markets are rigged when they go higher.  it's the reality defying manner in which they go higher that makes people believe they're rigged.  

Wed, 08/26/2015 - 12:03 | 6473377 DaVinci
DaVinci's picture

Agreed.

Wed, 08/26/2015 - 12:35 | 6473505 NuTroll
NuTroll's picture

Engineered crash for buying opportunities, they don't want to spend their own wealth on the upcoming war.

The Dollar must crash last, but in order to provide room for EU and BRIC QE, must slightly deflate US market first (and maybe raise rates?). Then after massive QE there,a real crash will occur, and the weight of those crashes will temporarily strengthen the dollar (driving gold down to 1000 or less), until finally the Dollar crashes last under the weight of it.
Then the transfer to a new reserve currency can take place, all while providing buying opportunities for insiders and providing the excuse to expend the last of US military strength against the ME.

Wed, 08/26/2015 - 13:19 | 6473701 PlayMoney
PlayMoney's picture

I think sink it just because they are bored. Straight line up for 6 years....yawn.

Wed, 08/26/2015 - 08:54 | 6472240 This is it
This is it's picture

Hey Charles/Snyder, what's new pussy cat????

Wed, 08/26/2015 - 08:56 | 6472246 HonkyShogun
HonkyShogun's picture

They want to implement a global digital currency and your chip implant.

Wed, 08/26/2015 - 09:02 | 6472278 Mr. Magoo
Mr. Magoo's picture

Yes something like bitcoin

Wed, 08/26/2015 - 08:56 | 6472247 silverer
silverer's picture

Rigged or not, you can bet they ran the supercomputers through every scenario to make sure they don't miss a nickel, no matter what the market does.  All citizens have to do to stop the shenanigans is pull all their money out and turn it to PM in a safe place.  Nobody at the tables, casino closed.  Have a nice day.

Wed, 08/26/2015 - 09:08 | 6472321 pods
pods's picture

Their all powerful enterprise implodes when the serfs stop taking on new debt.

Which means their enterprise isn't really all that powerful.

pods

Wed, 08/26/2015 - 08:56 | 6472248 buzzsaw99
buzzsaw99's picture

sniff test? dude, mustard gas is less noxious than yellen's farts.

Wed, 08/26/2015 - 08:57 | 6472250 asierguti
asierguti's picture

I suggest to Charles Hugh-Smith to try to understand how VIX is actually calculated and what it means. Also, if he has the time, he could research what happened to the vega that LTCM was selling when Russia when bankrupt.

 

Btw, I don't know about shock, really. The only people who are really shocked are the ones that bought stocks during the last few years, but that has nothing to do with the real economy. I guarantee you that the young person who is unemployed for years in Spain or Greece, was shocked before VIX spiked. Stop watching the screens, and talk to people on the street. You will get a better picture.

Wed, 08/26/2015 - 08:58 | 6472256 rsnoble
rsnoble's picture

With 666 being the SP low in 2008..................bet your ass these fucking clowns are behind it!  Probably a bunch of satanic stupid fucks, men that want to be gods, showing the magic that they think they are made of.

This planet is ran by complete lunatics.

Wed, 08/26/2015 - 09:09 | 6472336 Phoenix901210
Phoenix901210's picture

Thanks for this, I do not believe Western establishment in control but I'm trying to understand this 666 thing after DOW's 15,666 yesterday. My translation so far is that positive entities that are usually more or less in control are not completely in control here, and the 'crash' could be a little more unpleasant then people are useful.

I've prepped already though.

Wed, 08/26/2015 - 09:16 | 6472372 rsnoble
rsnoble's picture

Yeah, I forgot to mention the 15,666 thing.

This is no joke---I was in the presence of traders worth millions in the 2008 timeframe and they told me straight up that the number 666 was coming up way too often for comfort, not just the low, but elsewhere, and that it was making them spooked.

Again, i'm not blowing smoke up your ass.  That's a true story.

Wed, 08/26/2015 - 09:26 | 6472439 rsnoble
rsnoble's picture

Technology, a wannabe diety's best friend. 

Consider the example of C-3P0 floating around in a chair and convincing the Ewoks he is a god.  In our case, the Feds are Skywalker and the markets are C-3P0:

https://www.youtube.com/watch?v=_EVSm4YdZN8

Wed, 08/26/2015 - 09:38 | 6472528 GeezerGeek
GeezerGeek's picture

But 666 is not evenly divisible by 7, and we've all been told how important 7 is. 666 divided by 7 has a remainder of 1, and we all know that it takes 2 to tango, so there must be at least 2 different factions warring with each other here.

Does any of this make sense to anyone? If it does, go see your shrink immediately.

Wed, 08/26/2015 - 09:38 | 6472532 PTR
PTR's picture

Don't forget 666 bursts of rapid order/pull futures contracts on Monday.

Wed, 08/26/2015 - 09:57 | 6472620 rsnoble
rsnoble's picture

Thanks. See what I mean?  Probably brought to you by the likes of people that were responsible for buildings falling down for no apparent reason.

Wed, 08/26/2015 - 17:59 | 6473710 explodinghead
explodinghead's picture

666..i don't know..perhaps..

https://www.youtube.com/watch?v=62Qfbrc1jdo

Wed, 08/26/2015 - 12:09 | 6473386 Grandad Grumps
Grandad Grumps's picture

Lol ... the Bible tells us that Satan is the ruler of this world. It makes sense then that all of the documentation, including the bible would have to be grade A1 Satan approved literature, regardless of how it was originally inspired and assembled.

The number of the beast 666 and everything that has gone into the religions has to have been allowed by Satan, as the ruler of this world, to be released and propagated

Think about it for a sec.

It may be that the creator God said to Satan, you can rule the world and be the adversary of mankind, but you have to allow my word to be released in its entirety and translated faithfully for the people. You cannot adulterate it ... Or there are other varied possible scenarios too numerous to expound upon.

Wed, 08/26/2015 - 12:45 | 6473553 mophead
mophead's picture

"With 666 being the SP low in 2008..................bet your ass these fucking clowns are behind it!"

That was March 6, 2009.

Nevertheless, here are the DOW closes eight years apart:

09/11/2001 - 9,605.51

09/11/2009 - 9,605.41


Wed, 08/26/2015 - 08:59 | 6472258 fromthinair
fromthinair's picture

Charles, I agree with you. That is not out of question. Even the banks were talking bad things about markets.

By the way, you read this short story. What is the moral of the story?

"The tale of two uncles"... two of our beloved uncles.

http://just-a-thought-from-thinair.blogspot.com/

Wed, 08/26/2015 - 09:00 | 6472263 buzzsaw99
buzzsaw99's picture

if it goes up it is because that is what "they" want and if it goes down it is because that is what "they" want. there is no market.

Wed, 08/26/2015 - 09:01 | 6472265 Sanity Bear
Sanity Bear's picture

<--- Markets will end DOWN by Wed close

<--- Markets will end UP by Wed close

 

 

Wed, 08/26/2015 - 09:09 | 6472298 buzzsaw99
buzzsaw99's picture

it's not easy being green [/kermit]

wouldn't it be hilarious if china WAS currently buying usa equities even while NOT buying chinese equities and watching them crash and burn? belgium long-us/short-china hedge fund anyone?

Wed, 08/26/2015 - 09:16 | 6472378 Sanity Bear
Sanity Bear's picture

it would be even more hilarious if China was pumping the pre-market futures to load up on ammo to smash the PPT's interventions

Wed, 08/26/2015 - 11:48 | 6473291 Dickweed Wang
Dickweed Wang's picture

it would be even more hilarious if China was pumping the pre-market futures to load up on ammo to smash the PPT's interventions

IMHO this is EXACTLY what has happened over the last few days of trading.  Tit for Tat . . . . . unfortunately it is all part of the BIG GAME being played.

Wed, 08/26/2015 - 09:01 | 6472266 papa_lazarou
papa_lazarou's picture

Is the market rigged? Ask the jews.

Wed, 08/26/2015 - 09:06 | 6472306 Usurious
Usurious's picture

''In 1290, King Edward I issued an edict expelling all Jews from England. The expulsion edict remained in force for the rest of the Middle Ages. The edict was not an isolated incident, but the culmination of over 200 years of increased persecution. Oliver Cromwell permitted Jews to return to England in 1657, over 360 years after their banishment by Edward I, in exchange for finance.''

https://en.wikipedia.org/wiki/Edict_of_Expulsion

Wed, 08/26/2015 - 09:29 | 6472474 Joe A
Joe A's picture

He ran up huge debts and this is how he got rid of it. Worked every time in Europe. Jews were not allowed to conduct any other business than finance so they became money lenders.

Wed, 08/26/2015 - 11:44 | 6473267 Dickweed Wang
Dickweed Wang's picture

Jews were not allowed to conduct any other business than finance so they became money lenders.

Bullshit!  They have gravitated to finance for over 2000 years due to the fact they learned how to get rich by usury and fraud.  It was going on in Christ's time and still is going on today.  This is the primary reason they have been expelled from almost every country they have "settled" in up until recent history.

Wed, 08/26/2015 - 14:32 | 6473981 bid the soldier...
bid the soldiers shoot's picture

Maybe if Ivanhoe didn't jilt Rebecca of York things would have turned out different?

 

Wed, 08/26/2015 - 09:07 | 6472312 Phoenix901210
Phoenix901210's picture

Yeah, maybe 'Shemitah' is a real thing.

Or, more likely, it's that rich Jews sold on that day for some reason.

Wed, 08/26/2015 - 09:01 | 6472270 Mewa
Mewa's picture

How about the simple answer that the market has been so rigged, distorted, and manipulated that it has become critically fragile to the point that anything can topple this house of cards....Historically this always happens in a blow off top bubble economy....look at the markets right now...durable goods crashing into recession with declines...market is up 300 pts...Make sense to you?

Use your common sense and get the hell out before this goes illiquid like many hedge funds did the last couple of days and you cant get out....

Wed, 08/26/2015 - 09:02 | 6472272 GMadScientist
GMadScientist's picture

The point where knife catching morphs into sword swallowing.

Wed, 08/26/2015 - 09:02 | 6472275 Hubbs
Hubbs's picture

One thing for certain, insiders are going to have the advantage of front running the TRIGGERS to possible market action, so in that regard, insider trading has been perfected.

Wed, 08/26/2015 - 09:02 | 6472277 VW Nerd
VW Nerd's picture

These are reasonable observations.  If the China card was not in play, I would be more inclined to agree with this thesis.

Wed, 08/26/2015 - 09:05 | 6472293 Phoenix901210
Phoenix901210's picture

PRECISELY, PRECISELY. 

US was hardly invovled in the selling of US treasuries from China, and hardly bombed Tianjin because everything was A.O.K.

It's good to get these ideas out the system though. So we can communicate easier with others.

Wed, 08/26/2015 - 09:03 | 6472281 Chuck Knoblauch
Chuck Knoblauch's picture

Have you read George Orwell's work 1984?

Crashes are managed because they are planned.

Wed, 08/26/2015 - 09:13 | 6472354 pods
pods's picture

E-4 on the throw Chuck.

It is a function of our money system, not some super engineered system where voice votes are taken in smoky rooms to crash anything.

P+I>P.

All you need to know. Sure they take advantage of these crashes to buy up assets at firesale prices, but there ain't no fucking planning of crashes anymore than you can plan a snowstorm.

pods

Wed, 08/26/2015 - 09:33 | 6472497 Chuck Knoblauch
Chuck Knoblauch's picture

The US Patent Office has issued patents for weather modification.

Wed, 08/26/2015 - 09:43 | 6472553 pods
pods's picture

Yes, I have seen them. It is also very narrow in scope and is used to take advantage of naturally occuring conditions, such as an upslope in a mountain range.

Or cloud seeding.  

Well, if y'all are right about "their" ability to control this without doubt or rules, why are any of you involved in the first place?

pods

Wed, 08/26/2015 - 09:58 | 6472646 Chuck Knoblauch
Chuck Knoblauch's picture

Have you heard of the Invention Secrecy Act of 1951?

Wed, 08/26/2015 - 10:26 | 6472808 pods
pods's picture

Ahhh, secret inventions. Lemme get my hat.  

Jesus Chuck, it was a damn analogy. I didn't realize you were going to go all Leo Wanta on me.

You remind me of arguing with an old girlfriend. By the time you end the argument, you have no idea where you are, or how the hell you got there.

Wait, Michelle, is that you?

pods

Wed, 08/26/2015 - 09:06 | 6472300 rejected
rejected's picture

EVERYTHINGS RIGGED!!

Why would this be any different?

There is nothing wrong with your Ipad. Do not attempt to adjust the picture. We are controlling transmission. If we wish to make it louder, we will bring up the volume. If we wish to make it softer, we will tune it to a whisper. We will control the horizontal. We will control the vertical. We can roll the image, make it flutter. We can change the focus to a soft blur or sharpen it to crystal clarity. For the next hour, sit quietly and we will control all that you see and hear. We repeat: there is nothing wrong with your Ipad. You are about to participate in a great adventure. You are about to experience the awe and mystery which reaches from the inner mind to the -Federal Reserve-

End the Fed.

 

Wed, 08/26/2015 - 09:10 | 6472333 roadhazard
roadhazard's picture

What if the crash is rigged.

 

Well, this IS ZH where you can always make up a better story to fit your tin foil hat.

 

 

Wed, 08/26/2015 - 09:26 | 6472441 paint it red ca...
paint it red call it hell's picture

Here ya go roadapples, a little ZH credibility... best check your own.

http://www.zerohedge.com/news/2015-08-26/betting-end-world-just-returned...

Wed, 08/26/2015 - 10:42 | 6472900 roadhazard
roadhazard's picture

Yeah, that nailed it down... :rolls eyes:

Wed, 08/26/2015 - 09:26 | 6472443 Dr. Engali
Dr. Engali's picture

I've upgraded from a tinfoil hat to a polished silver cap.

Wed, 08/26/2015 - 10:07 | 6472700 Ms No
Ms No's picture

I'm in a faraday cage.

Wed, 08/26/2015 - 09:09 | 6472334 Dr. Engali
Dr. Engali's picture

Of course it's rigged. You really have to ask that question? 2009 was an engineered collapse as well that was "fixed" the moment they went back to mark to fantasy with bond holdings for banks.

Wed, 08/26/2015 - 09:36 | 6472519 Sisyphus
Sisyphus's picture

I remember how many bears shorted at the 1040 neckline after noticing the H&S formation on the S&P. They were all "nudged" in and massacred.

I thought that the 1000 pts drop was the big one; however, it seems, they are toying with the bears. They are being enticed to short only to have their asses handed to them on a platter.

They still control the market. It is too precious to them, and they cannot afford to lose their stranglehold on the indexes. As someone here had mentioned eons ago--The stock market has become a policy tool for the fed.

Wed, 08/26/2015 - 09:13 | 6472355 Inbetween is pain
Inbetween is pain's picture

On ZH, everything is a conspiracy, nothing happens by chance, and we can always blame the Jews or the Negroes. I think ZH is run by a paranoid schizophrenic.

Wed, 08/26/2015 - 09:23 | 6472419 adr
adr's picture

Give some evidence that they aren't to blame.

Find the shining beacon of prosperity with a majority population of minorities.

Find a TBTF bank that doesn't have a board member or primary shareholder with a name that ends in ein or itz.

Wed, 08/26/2015 - 10:00 | 6472653 HopefulCynical
HopefulCynical's picture

To be fair, it isn't JEWS, it is Jewish psychopath parasites.

Not all Jews are psychopath parasites. The ones who are, think the Talmud is their license to plunder the whole of mankind.

The biggest problem with the rest of the Jewish people is that they're too quick to stick up for the psychos.

They need to stop doing that.

Wed, 08/26/2015 - 09:14 | 6472362 Brazen Heist
Brazen Heist's picture

The high VIX reading indicates how deep the panic is, many rushing to take out insurance on the falling stock market through options

Wed, 08/26/2015 - 09:15 | 6472369 paint it red ca...
paint it red call it hell's picture

Rigged? How outrageous, thats like asking, "What if the shemita is as rigged as anything else?"

One big psyops, MSM ignores it all and alternate media is flooded with disinfo....... These pricks got it covered.

Wed, 08/26/2015 - 09:22 | 6472393 Secret Weapon
Secret Weapon's picture

Push people out of stocks to make a market for the Treasurys china is dumping.  Flight to safety and all that baloney.

Wed, 08/26/2015 - 09:21 | 6472409 dbbloke
dbbloke's picture

Of course it's 'kinda' planned, but by who? Explains the constant Greek bail outs and Chinese gold accumulation.
Following this line of thought... how did Italy/France get lucky, not completely straightforward then ))

Wed, 08/26/2015 - 09:23 | 6472418 Ms No
Ms No's picture

The whole thing was set up for collapse, it's a matter of when and how that the oligarchs are concerned with.  They have a plan and it maybe it isn't going down perfectly.  Collapses and catastrophes are engineered in order to institute solutions... it's the solutions that we should be most worried about.  Delusions of grandeur are one of the only weaknesses of the psychopath. 

Wed, 08/26/2015 - 09:26 | 6472442 sTls7
sTls7's picture

I'm sure just about everyone has thought this already!!!!!!

Wed, 08/26/2015 - 09:28 | 6472465 Orwell was right
Orwell was right's picture

/sarc on   ...but   ....but  Phoenix Capital has been telling me for years this is the "real thing"....and unless I run out and buy his pamphlet I will go broke.

/sarc off

Wed, 08/26/2015 - 09:31 | 6472485 nakki
nakki's picture

Imagine an entity that can create currency out of thin air to cover all loses and buy everything at the lows and sell to the same corporations as the corporations buy the top through buybacks. An entity that loans out money for real estate and when those loans go bad create money from nothing and make themselves whole and once again own those properties. An entity that loans governments money and holds that governments debt so when its time to payback those loans can take governments lands and assets. 

As I've said before when JP (both of them), Goldman, BoA  and Wells Fargo own Yellowstone and all national parks. A majority of corporations and all mortgages, this country will look more like 1900 than at anytime since 1900.

Wed, 08/26/2015 - 09:31 | 6472489 spoonful
spoonful's picture

We know it's not rigged because they couldn't possibly benefit from a crash - oh yeah, nevermind.  

Wed, 08/26/2015 - 09:32 | 6472492 PrimalScream
PrimalScream's picture

A bear market is a Bear Market.

It is amazing the number of American investors who seem to feel that "bear markets" are a thing of the past, like covered wagons and phones with rotary dials.

People SELL when they are afraid to take a LOSS.  This is natural.  Who wants to lose their shirt?  Who wants to lose their life savings? 

The time to protect your assets was BEFORE the bear market started ... you know ... back in the good old days ... say 3 weeks ago.  This comment gets to the heart of the problem.  People absolutely refused to believe that the market could go down.  That was 3 weeks ago!!

Yes, you can buy options.  They are now much more expensive, with volatility soaring.  The time to buy PUTS with a good price, was three weeks ago.  A PUT that was "out of the money" would have cost you very little.

What we learn from all of this  - is that people NEVER learn from all of this!!!

Wed, 08/26/2015 - 09:34 | 6472500 gmak
gmak's picture

What if this article is rigged?

Wed, 08/26/2015 - 11:54 | 6473334 Kickaha
Kickaha's picture

What if your comment was rigged?  Mine, too.

Wed, 08/26/2015 - 09:36 | 6472513 adr
adr's picture

Last week I asked the question; What if the crash happens because the computers see the collapse in the numbers? We hit a perfect Fibonacci sequence and the market started to tank. If the computer algorithms were programmed to monitor and trade based on principles like that, then they will trade based on what should happen if a sequential event is hit.

It wouldn't even take all the systems to start a crash. If only one major trading system was designed to follow a Fibonacci sequence it would wreak havoc.

The PPT is fighting the machines determined to trade the market to the next point or retrenchment. You turn the world over to WOPR, you have to live with the consequences.

During the massive run to 2008 highs I started to notice an uncanny similarity in the trading activity of individual stocks. Like someone or something was buying massive baskets of stocks with the same exact percentage bid price. People working in finance said this was just large players buying baskets of stocks for mutual funds. I said, yeah could be, but what if it is something more sinister like the Fed buying stocks to goose returns for certain investors. Of course that was laughed at and scoffed.

take a stock like Netflix and zoom out on the all time chart. Lay this on top of the overall market chart zoomed out. They almost match exactly. Peaks, valleys, crashes, face ripping rallies.

Netflix has gone full hyperbolic in the past year. A sure bubble sign.

 

Wed, 08/26/2015 - 10:25 | 6472724 HopefulCynical
HopefulCynical's picture

You turn the world over to WOPR, you have to live with the consequences.

True. Nice reference, too.

"How about a nice game of chess?"

"I want to play Global Thermonuclear War."

Wed, 08/26/2015 - 09:37 | 6472523 Kina
Kina's picture

Ahhhgghh... whats real whats not real......

Wed, 08/26/2015 - 09:37 | 6472525 Keltner Channel Surf
Keltner Channel Surf's picture

What if this article was rigged to make you think the correction was rigged?  What if my ZH account was hacked to discredit the author?  What if the hacker's server was itself hacked by anti-hackers to make you think I was hacked and draw attention to server security?  What if ...

Wed, 08/26/2015 - 09:38 | 6472533 Kina
Kina's picture

I'm a hologram..I just know it.

Wed, 08/26/2015 - 09:38 | 6472534 geekz_rule
geekz_rule's picture

Given the level of scripting this theater, ya, makes prefect sense. 

P < P + I

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