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Zero Hedge Kindly Requests The Immediate Resignation Of Mary Schapiro For Gross Breach Of Professional Responsibilities

Tyler Durden's picture




 

Ever wonder why the final SEC report on the flash crash doesn't match up to the forensic evidence found by Nanex?

It seems the SEC/CFTC failed to disclose they didn't get around to interviewing the traders that actually executed the algorithm blamed for dumping 75,000 emini contracts on the market "without regard to price or time" until 2 weeks after publishing their final report on the flash crash! Apparently, they were making a lot of things up to fit a foregone conclusion.

According to the media, it was Waddell & Reed who executed those trades right? Well, no. Barclays executed the contracts using their time tested algorithm called Participation. You simply can't crash a market with the Participation algorithm. This is an algorithm that in fact has sophisticated price and time components. This is an algorithm that would only sell at the offer -- and never at the bid. This was discovered and pointed out by Nanex after just one day reviewing the actual 6,438 eMini contract trades (75,000 contracts) which ZeroHedge helped obtain. But the media was happy to hang the guilt on an out of town mid-west Mutual Fund company, and besides all this stuff was getting way too complicated. After all, when it comes to such complexities, it is only economy PhDs who are fit to opine at will.

Only the SEC/CFTC wasn't counting on anyone double checking their work...

So a week after Nanex published their findings on the eMini trades, the CFTC holds their very first interview with Vijay Pant -- the man in charge of executing the infamous W&R trades at Barclays using the Participation algorithm. Here's a link to the CFTC website showing that meeting. This was the first time the SEC/CFTC actually interviewed those with intimate knowledge about the algorithm blamed for the flash crash in the SEC/CFTC final report.

How many heads will roll for this faux pas? And if it is only one, it better be that of Madoff "dear friend" Mary Schapiro who may have slipped through the cracks after the biggest ponzi scheme, since the US government, was handed to her on a silver platter.

But not this time.

If it is indeed confirmed that the agency, which is already in hot water for purposefully destroying evidence confirming various hedge funds have participated in insider trading, we are confident that the mere onslaught of class action lawsuits against the SEC, which one can now accuse of out right cover up, by anyone who lost money on May 6, will force not one but countless resignations, as the rats abandon the sinking ship, terrified by the prospect of civil and criminal liability pursuing their very own sad and pathetic bureaucratic careers.

We urge any and all class action lawyers among our readers to do their thing.

 

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Tue, 10/04/2011 - 22:22 | 1739930 breezer1
breezer1's picture

what does she tell her kids when they ask," what do you do at work mamma"? maybe she is a sterile psycopath.

Tue, 10/04/2011 - 22:43 | 1739991 nasa
nasa's picture

"I'm doing God's work"

Tue, 10/04/2011 - 22:24 | 1739935 Unprepared
Unprepared's picture

Com'on, this cannot be as newsworthy as Christy deciding not to run for president.

Tue, 10/04/2011 - 22:24 | 1739936 loudoungroup
loudoungroup's picture

Priding myself on being a Deputy Inspector General (a.k.a

http://www.imdb.com/title/tt0434409/

 

this is some juicy stuff.  The trigger points appear to go off day after day.  The SHTF is happening. It is no longer a matter of when.  It is now unfolding.

Tue, 10/04/2011 - 22:25 | 1739938 Atomizer
Atomizer's picture

Don't worry, Attorney General Eric Holder is a frog boiling in the pot. Things take time before the meal is served.

 

Obama Orders Launched Fast and Furious

http://www.youtube.com/watch?v=-PNhYk9NuNc 

Full C-SPAN Video Link 3-24-2009
http://www.c-spanvideo.org/program/MexicoBor&start=800
 

All we can do is laugh at the criminals caught stealing cookies from the cookie jar.

Tue, 10/04/2011 - 23:27 | 1740064 DoChenRollingBearing
DoChenRollingBearing's picture

Yep, that is another one to keep an eye on.  F & F may take out Holder, which would as good as Schapiro.  Better would be both!

BETTER yet, Ron Paul 2012!

Wed, 10/05/2011 - 00:06 | 1740127 karzai_luver
karzai_luver's picture

You screwballs that have your panties in a bunch need to understand that the U.S. supplies arms to the fukin world and that more guns/ammo have come back from all our little friends than anything that this FF "crime wave" has spawned.

 

The , i dont know what to call it exactly, lack of any comprehension or just goofy palaver is really an eye openner.

 

You goofs are toast if this is all you got.

 

How sad to see you chase fluffy round and round while the masters laugh.

 

Hell, this deal was 50-50 to be a false flag setup to cover for massive coke trades by certain bankster types as anything else.

 

P.s. I don't see where anything Pauly is spouting would change what you cry over as regards FF other than it would be all black ops and I guess the feds would not be involved. Sounds like progress I guess.

 

Wed, 10/05/2011 - 01:13 | 1740238 DoChenRollingBearing
DoChenRollingBearing's picture

Ron Paul is the best that we have got.

Of course there is LOTS of sleaze and a HUGE mess to clean up.  We will not avoid hideous pain, whomever gets elected.

Re F & F and drug dealing, well you may have something there re Banksters, that is a possibility I will not dismiss.

Wed, 10/05/2011 - 07:01 | 1740487 karzai_luver
karzai_luver's picture

Do

 

Issa and others in CONgress were briefed on this whole deal and said nothing.

 

This and worse has been going on for YEARS before Obama and placeholder.

 

Back to Regan all in these positions have been criminal scum.

 

Hell a case could be made that under the strict reading of the Constitutuon that all admin in the last 70 years should have been put in jail after their terms were up.

 

Bush , even back to Pappy were hip deep in this and worse far far worse.

 

Jail 'em all including the current scum.

 

Tue, 10/04/2011 - 22:26 | 1739943 Misean
Misean's picture

Schapiro's professional responsibilities are to open all her orifices to banksters. Now, that is gross, and she does get breached, but how can you fire it...erm...her, for doing her job?

Tue, 10/04/2011 - 22:28 | 1739946 James T. Kirk
James T. Kirk's picture

Just another bogey that's par for Obama's golf-course presidency.

Tue, 10/04/2011 - 22:29 | 1739949 YesWeKahn
YesWeKahn's picture

"Only the SEC/CFTC wasn't counting on anyone double checking their work.."

 

Tyler, this is no true. You are, we are. They are only accountable to the tax payers. But unfortunately we are completely powerless.

Wed, 10/05/2011 - 03:00 | 1740347 BlackholeDivestment
BlackholeDivestment's picture

...bullshit, go arrest their dusty asses. You need someone standing with you, while you make that arrest, let me know.

Wed, 10/05/2011 - 10:17 | 1741167 i-dog
i-dog's picture

"we are completely powerless"

That's what TPTB want you to think. You are only as powerless as your inertia renders you.

Tue, 10/04/2011 - 22:29 | 1739953 loveyajimbo
loveyajimbo's picture

Better add that arch-turdling Gensler too...

Tue, 10/04/2011 - 22:30 | 1739954 km4
km4's picture

Mary Schapiro Class of 1977 Franklin and Marshall College was not like this back then and that's all I'm going to say ;)

Tue, 10/04/2011 - 22:33 | 1739963 Misean
Misean's picture

She wasn't a sperm burping gutter slut?!?! Then why the winky-wink?

Tue, 10/04/2011 - 22:30 | 1739955 prophet
prophet's picture

An SRO for hedge funds?  

Tue, 10/04/2011 - 22:30 | 1739956 JW n FL
JW n FL's picture

 

 

LIES! ALL! LIES!

Mary Loves the little people, without them she would have no one to fleece for a living!

Tyler, you keep this shit up and you will need to move in with some security.

the pen is mightier and all that bullshit.. until you brush your teeth and have a heart attack.. or someone shows up with a shotgun.. then that pen will feel a little light in your writing hand.

Tue, 10/04/2011 - 22:59 | 1740015 tickhound
tickhound's picture

Are you suggesting the possible need for a Tylerdential line of succession?

Yeah... TD you may wanna get on that.

Tue, 10/04/2011 - 22:31 | 1739957 Zonker
Zonker's picture

So who the fuck caused the Smash Dash today then Einstein? 

Tue, 10/04/2011 - 22:40 | 1739978 Money 4 Nothing
Money 4 Nothing's picture

I reviewed the charts all coverlaid and it seems to me this was TPTB juiced this market. The after hours are not buying into it.

Because it's fake, just look at the broad spectrum, velocity and volume (or lack their of) and some amature like me can even see it. 

Tue, 10/04/2011 - 22:31 | 1739958 Osmium
Osmium's picture

"Ever wonder why the final SEC report on the flash crash doesn't match up to the forensic evidence found by Nanex?"

I think deep down, everyone here knows the answer to that question.  Because no one at the SEC has enough balls to do their job.  Plus they are crooks defending those who provide kickbacks to them.

Tue, 10/04/2011 - 23:59 | 1740068 DoChenRollingBearing
DoChenRollingBearing's picture

Until shown otherwise, that is the only logical explanation.  Green.

Wed, 10/05/2011 - 03:41 | 1740352 BlackholeDivestment
BlackholeDivestment's picture

...these assholes are all compartmentalized and sold out, that's the nature of the government beast. These whores are what they are and the Truth, good work, that just does not pay. You would know that in short time if you ever had the misfortune.

Tue, 10/04/2011 - 22:31 | 1739959 Mister Minsk
Mister Minsk's picture

Well, the SEC is full of cockroaches, but this Schapiro is the biggest cockroach of them all.

Tue, 10/04/2011 - 22:34 | 1739965 prophet
prophet's picture

The issue is not the people its the system.   

Wed, 10/05/2011 - 00:08 | 1740141 karzai_luver
karzai_luver's picture

fail.

 

the peeps are rotten to the core and the system reflects same.

 

too bad.

 

Wed, 10/05/2011 - 03:42 | 1740353 BlackholeDivestment
BlackholeDivestment's picture

...bullshit! It sure the hell is, and you know it. Don't even try to say the people don't see the shit. They do.

Wed, 10/05/2011 - 09:15 | 1740885 prophet
prophet's picture

They see it.  You see it.  I see it.  Everyone sees it.

Tue, 10/04/2011 - 22:34 | 1739966 monopoly
monopoly's picture

Just more incompetence and lies. Just not surprised anymore.

Tue, 10/04/2011 - 22:38 | 1739975 lemosbrasil
lemosbrasil's picture

Sept-out-2008 there were 2 false breakdown before freefall. These 2 breakdown were "fake" breakdown". But, 4-5 days after, we saw a hard breakdown and SP500 finally comes the big drop of more than 400 points !!!!

Stay tuned for the market dont make you a fool ! The market can to confuse anyone !

Take a look the chart here : http://pracompraroupravender.blogspot.com/2011/10/vamos-revisitar-brincadeirinha-do-sp500.html



http://www.gstatic.com/translate/buttons6.png); background-attachment: initial; background-origin: initial; background-clip: initial; background-color: initial; opacity: 0.667; margin-top: -3px; vertical-align: middle; background-position: -94px -3px; background-repeat: no-repeat no-repeat;"> 

Tue, 10/04/2011 - 22:44 | 1739986 reinhardt001
reinhardt001's picture

deleted

Tue, 10/04/2011 - 22:49 | 1740001 luckylogger
luckylogger's picture

If any of you guys read John Mauldon, today's or yesterday's post was from the bigshot retired Pimco dude that always had very good insight "Nothing like a good hangin' to focus the mind" or something close to that (from judge Roy Bean). 2 years ago a finance proff that i respect told me the same thing--- line up abpout 4 ceo's and shoot them, bankers are pussy;s -- it will never happen again !

Stuck in my mind, let em bleed.............

Wed, 10/05/2011 - 10:33 | 1741225 i-dog
i-dog's picture

"line up abpout 4 ceo's and shoot them"

Indeed! ... you've got to get their attention before attempting to talk to them. :)

Tue, 10/04/2011 - 22:51 | 1740005 onlooker
onlooker's picture

As Tyler and William7 point out, we live in a lawless society where not only widows and orphans get victimized but where the whole society of our Nation is ripped off.

 

There is no law and order. Theft and fraud by the big dogs, smart dogs, rich dogs, connected dogs, and Government dogs is a standard day, every day.

 

Yes, please do sue the bastards. Make known their crimes. But do not think or consider the Rule of Law is going to apply to them. That is not my America, the land that I love.

Wed, 10/05/2011 - 00:14 | 1740152 karzai_luver
karzai_luver's picture

You love a mirage a pipe dream.

 

Only someone with no sense of history could believe in what you say you love.

 

God help you if you have completed your education and still swallow that garbage.

 

Go back and read the papers from 100 years ago then tell me what country you are in love with.

 

It has always raped and pillaged anyone that looked easy.

laughable garbage.

 

Wed, 10/05/2011 - 09:28 | 1740973 Anonymouse
Anonymouse's picture

We just need a few true statesman.  Like Hamid Karzai!

Wed, 10/05/2011 - 00:30 | 1740006 Caviar Emptor
Caviar Emptor's picture

Deleted

Tue, 10/04/2011 - 23:05 | 1740023 bob_dabolina
bob_dabolina's picture

It was also Barcalys that caused the USD/JPY crash following the tsunami for refusing to continue being a market maker. If anyone remembers that move.

Tue, 10/04/2011 - 23:09 | 1740032 Pants McPants
Pants McPants's picture

Well done, gentlemen (and ladies?) comprising the Tylers.

My only regret regarding this site is that I didn't find it sooner.  Keep up the excellent work!

Tue, 10/04/2011 - 23:13 | 1740035 ZippyDooDah
ZippyDooDah's picture

This country needs a revolution.

Tue, 10/04/2011 - 23:31 | 1740070 zorba THE GREEK
zorba THE GREEK's picture

I'll bring the rope.

Wed, 10/05/2011 - 03:14 | 1740358 BlackholeDivestment
BlackholeDivestment's picture

...the used rope, from hanging yourself, does not count.

Tue, 10/04/2011 - 23:15 | 1740041 Cabreado
Cabreado's picture

A sincere Bravo, ZH.

Meantime... it's very high time for all of us to keep some semblance of sanity, compassion, tolerance-in-right-places, as we witness the Outliers crumble in their attempt (out of ignorance or otherwise) to destroy the spirit of this little organization called Humanity.

If we play it right, perhaps the spirit (and the Intent) will prevail.

After all... the Outliers, by definition, are on their own, and really don't stand a chance, if healthy humans keep their wits about them.

Tue, 10/04/2011 - 23:15 | 1740043 Seasmoke
Seasmoke's picture

there should be NOTHING kind about it........it should be and needs to be very mean and brutal

Tue, 10/04/2011 - 23:22 | 1740056 lizzy36
lizzy36's picture

They should 100% defund the SEC.

It's main role is as facilitator for the status quo not regulator or protector or whatever other bull shit phrase they want to use in their mission statement.

The average investor should not count on them to do anything but catch a couple low level fraudsters per annum (justify their $1B). So time to call it a day on the SEC.

The dumbest thing that happened after the flash crash was the dking of trades. Only way to solve the flash crash/dash issue is to let losses stand.

Not sure why the regulators have such a hard time wrapping their head around this fact.

Tue, 10/04/2011 - 23:31 | 1740071 DoChenRollingBearing
DoChenRollingBearing's picture

Yes!  And we shrink the.gov a little but too.  Two for the price of one!

Wed, 10/05/2011 - 03:17 | 1740360 BlackholeDivestment
BlackholeDivestment's picture

...I am defunding them, how about you?

Tue, 10/04/2011 - 23:29 | 1740067 zorba THE GREEK
zorba THE GREEK's picture

When I was young, the world was a lot different.

People would not have put up with this crap. 

There would have been outrage coming from private citizens, government and the media.

I'm not sure how we got here. It was gradually for sure. First people let the little things slide,

and it seems everyone became so wrapped up in their own private world that they stopped 

paying attention to what the government was doing. The media got bought up by a few

super rich power brokers and it went downhill fast. It's time we take a cue from the movie

'NETWORK' and " get mad as hell and not take it anymore"

Wed, 10/05/2011 - 00:17 | 1740156 karzai_luver
karzai_luver's picture

Trust this, when you were young this shit or the close cousin was going on, you just never knew it.

 

get over yourself.

 

Tue, 10/04/2011 - 23:30 | 1740069 tradewithdave
tradewithdave's picture

This is a great idea.  You should spread the word by using the public address system at #Occupy Wall Street.  This late at night there are still three guys standing there who will repeat what ever you say so that people within twenty feet will also hear your great ideas. Forget the website.  Go BIG or go home...  

http://tradewithdave.com/?p=8060

Dave Harrison

www.tradewithdave.com

Wed, 10/05/2011 - 00:31 | 1740086 Caviar Emptor
Caviar Emptor's picture

 

Deleted

 

Tue, 10/04/2011 - 23:39 | 1740092 Kina
Kina's picture
Whoever authorised the destruction of documentation must be sent to prison.
Tue, 10/04/2011 - 23:52 | 1740110 Robert-Paulson
Robert-Paulson's picture

Color me stupid, but does anyone know why the Hang Seng Index (HSI) is closed?  Japaneese Holiday?

 

Please advise and thanks

Wed, 10/05/2011 - 00:08 | 1740140 Kina
Kina's picture

Oct. 5 (Bloomberg) -- Hong Kong’s financial markets are closed today for the National Day holiday. Trading will resume tomorrow.

Wed, 10/05/2011 - 00:02 | 1740125 Tsunami Wave
Tsunami Wave's picture

This is pretty stunning that just about no one from the prominent media outlets, print press, etc. reports this anywhere.. probably because:

1.) They still have no real idea how the entire financial sector works, from basic commercial banking to how hedge funds work and what they can really do, or

2.) They are complicit with the said powers (the elite, multimillionaires/billionaires, government and large private institutions) and knowingly have a media blackout over this and the government's interaction with the relating parties.

 

It sounds crazy that a blog like Zero Hedge is asking for this.... but then again it isn't crazy at all knowing what kind of country/world we really live in now.  It reminds me of something Thomas Jefferson once said, which was that he would rather live in a country with a press but no government than with a government but no press.

Wed, 10/05/2011 - 00:03 | 1740128 agrotera
agrotera's picture

Let's not forget what Byrnes' crew at deepcapture.com uncovered about failure to deliver and naked shorts, and still the SEC has to answer to no one.

 

Wed, 10/05/2011 - 00:18 | 1740159 karzai_luver
karzai_luver's picture

quack

 

Wed, 10/05/2011 - 00:22 | 1740166 slewie the pi-rat
slewie the pi-rat's picture

they published their report  9.30.10, and yes, the interview was done 10.14.10 

lotta data & entire bureaucrat-filled buildings where no one had a clue what it meant.  so they figured it out and this was the crimex's response to their damned report(!) [fr. wiki 2010 Flash Crash - Wikipedia, the free encyclopedia]:

Criticism to the SEC-CFTC report

A few hours after the release of the 104 pages SEC-CFTC report, a number of critics stated that blaming a single order (from Waddell & Reed) for triggering the event was disingenuous. Most prominent of all, the CME issued within 24 hours a rare press release in which it argued against the SEC-CFTC explanation:

According to the CME,[39]
Futures and options markets are hedging and risk transfer markets. The report references a series of bona fide hedging transactions, totaling 75,000 contracts, entered into by an institutional asset manager to hedge a portion of the risk in its $75 billion investment portfolio in response to global economic events and the fundamentally deteriorating market conditions that day. The 75,000 contracts represented 1.3% of the total E-Mini volume of 5.7 million contracts on May 6 and less than 9% of the volume during the time period in which the orders were executed. The prevailing market sentiment was evident well before these orders were placed, and the orders, as well as the manner in which they were entered, were both legitimate and consistent with market practices. These hedging orders were entered in relatively small quantities and in a manner designed to dynamically adapt to market liquidity by participating in a target percentage of 9% of the volume executed in the market. As a result of the significant volumes traded in the market, the hedge was completed in approximately twenty minutes, with more than half of the participant's volume executed as the market rallied – not as the market declined. Additionally, the aggregate size of this participant's orders was not known to other market participants. Additionally, the most precipitous period of market decline in the E-Mini S&P 500 futures on May 6 occurred during the 3½ minute period immediately preceding the market bottom that was established at 13:45:28. During that period, the participant hedging its portfolio represented less than 5% of the total volume of sales in the market.

so, blaming it on waddel & reed was disingenuous!  so there!

the chicago mercantile exchange (CME~~crimex) had the correct (?) market dampener in place and went to defcon one (5-second order delay/halt in the system) and the orders came back into "orderly & matching (m/l)" at the end of the delay.  The End

some parts of the "final report" have stood the test of time better than others...  but from what i saw, the crimex ended up getting pretty good grades! 

why?  b/c every "sale" is a contract between a short and a long, and everybody is identified.  they designed the 5-sec delay for order imbalance and it did kick in and was used and allegedly even worked! 

now i may have been propagandized or maybe after these interviews which covered a few topics i have no idea wtf they are talkin'bout things changed? (paste):

The meeting was held at the CFTC's Washington, D.C. office.~ ~Participants discussed: (i) algorithmic processes; (ii) considerations regarding swap execution facilities; (iii) considerations regarding access to clearing; and (iv) considerations regarding swap data repositories

swap data repositories for $400?  L0L! 

mary shapiro's head on a platter for $29.95? 

Wed, 10/05/2011 - 00:44 | 1740196 Demogorgon
Demogorgon's picture

What saddens me most about this is that it doesn't surprise me. The criminals continue getting away with whatever they want to get away with as Rome burns right under the noses of its citizens. Oblivious. Streaming the latest episode of "the latest distraction" on their iGadgets.

*admittedly sent from my own iGadget, but my homepage is ZH. Do I get a pass? They actually do come in handy if used responsibly.*

Wed, 10/05/2011 - 04:13 | 1740386 bid the soldier...
bid the soldiers shoot's picture

hey

Wed, 10/05/2011 - 00:38 | 1740197 Scalaris
Scalaris's picture

ZeroHedge, if you were a woman I'd treat you with respect and buy you chocolate-covered flowers. I love you.

Wed, 10/05/2011 - 00:55 | 1740214 hambone
hambone's picture

U WANT JUSTICE???  NO JUSTICE FOR YOU!!!

Seriously, u want justice?  Go take it...

Wed, 10/05/2011 - 01:25 | 1740264 TheSilverJournal
TheSilverJournal's picture

One person getting the boot won't do jack. The entire federal governments and anyone it pays needs to get the boot.

Wed, 10/05/2011 - 01:43 | 1740287 IMA5U
IMA5U's picture

keep up the good work

 

can you try to get the bernak and obamanation fired too?

Wed, 10/05/2011 - 02:04 | 1740308 ilene
ilene's picture

A previous story on FINRA is also interesting in connection to this latest one. I had interviewed Larry Doyle about FINRA (then under Mary Schapiro) and its timely liquidation of its ARSs in 2007. 

http://ilene.typepad.com/ourfavorites/2010/12/finra-fess-up-1.html

I haven't followed up recently, but this reminds me to do that. 

Wed, 10/05/2011 - 02:15 | 1740313 disabledvet
disabledvet's picture

Class action lawsuits against Wall Street are the HIGHEST of the high end. WE'RE GONNA NEED TO SELL MORE T-SHIRTS! (You might ask how I know this. Well I SUED THE GOVERNMENT! LUDICROUS SPEED!) I love the spirit of this place. I really do. And I agree "the wheels of justice turn SLOWLY." But we would be remiss if we did not recognize the cop is on the beat here through its insider trading investigations. This has netted none other than a GOLDMAN SACHS PRINCIPLE--so obviously we are not complaining about the SEC itself. But we do need to ask ourselves "do we know our limitations as well?" Pat yourself on your back Zero Hedge! You have done well young Grasshopper!
http://www.youtube.com/watch?feature=player_detailpage&v=WCyJRXvPNRo

Wed, 10/05/2011 - 02:29 | 1740323 FreeNewEnergy
FreeNewEnergy's picture

Dollars, tools and people who will work off the books or under the table. Welcome to the "new normal" that El Arian won't be difucking on CNBS, BITCHEZ!

Wed, 10/05/2011 - 02:50 | 1740342 BlackholeDivestment
BlackholeDivestment's picture

...sheeit, I have not read the article yet, the title alone make me laugh. Who in hell should I not be able to arrest in this town!!!? You have no idea, ...well, yes you do. ...but there are so many more... http://www.youtube.com/watch?v=YCjspyo-_aI

 

Wed, 10/05/2011 - 03:11 | 1740355 Coldfire
Coldfire's picture

The Peter Principle. You think apparatchiks like the Schapiro dude get to the top by accident? These thing don't just happen, they are made to happen.

Wed, 10/05/2011 - 03:51 | 1740371 Mr Warn-er
Mr Warn-er's picture

Great work again ZH , shame on the hatred posted above.

Wed, 10/05/2011 - 04:09 | 1740374 bid the soldier...
bid the soldiers shoot's picture

So we now have another scandalous event to take the mind of the peeps off of the real problem -- the all the king's horses and all the king's men problem --  the planet faces.  You must know earth is hurling headlong into the teeth of Peak Oil.  Peak Oil is  a lot like old age.  Every day there's a little bit less left.  Meantime the globe is spinning a $100 trillion economy. And excepting the air we breath and the water we drink, the most essential ingredient is oil. And peak oil means a little bit less every year. Without a credible substitute, how do you square that with Capitalism?

Meanwhile back at Wall Street, the world's markets -- bonds, equities, commodities, foreign exchange -- are choking on their own vomit. What's to be done.  Ah ha.  Lets all say "Fuck Bernanke"  ten jillion times a second. That should make things better.  Right?  It's so much easier than facing peak oil.  And, hey, isn't anger right before K-R "acceptance"?

In 1956 M. King Hubbert predicted the U.S. would hit peak oil in 1970.  Bingo. A Lieutenant Slothrop sees it and tells his CO.  Suddenly our military has an interest in Peak Oil. Napoleon and his Grande Armee  may have marched on their stomach, but the U.S. Military steams, flies and rumbles on crude oil and it's derivatives.  If the planet is running low on car juice, we gotta to be good to the last drop. 

Enter Greenspan.  The plan is decided on.  Global demand for oil must be curtailed.  Other nations are let in on the plan.  Some sooner. Some later.  Real figures are used  Not the WMD crap. The housing bubble is voted on and it wins.  Tranches of MBS push it over the top.  There is a lot of fist bumping when Alan announces it. Then Greenspan tells the committee that whereas he is good at bubbles, he isn't good at catching the falling knife of a depression.  But he's heard about somebody was good at that.  A professor at Princeton who could keep a shattered economy twirling on a stick while smoking a cigarette.  Bush picks up the phone.

"Bernanke served as a member of the Board of Governors of the Federal Reserve System from 2002 to 2005.  In June 2005, Bernanke was named Chairman of President George W. Bush's Council of Economic Advisers, and resigned as Fed Governor. The appointment was widely viewed as a test run to ascertain if Bernanke could be Bush's pick to succeed Greenspan as Fed chairman the next year. He held the post until January 2006.
[edit]Chairman of the United States Federal Reserve

Bernanke testifying before the House Financial Services Committee responding to a question from John E. Sweeney on February 10, 2009
On February 1, 2006, President Bush appointed Bernanke to a fourteen-year term as a member of the Federal Reserve Board of Governors, and to a four-year term as Chairman.By virtue of the chairmanship, he sits on the Financial Stability Oversight Board that oversees the Troubled Asset Relief Program. He also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policy making body." (Wikipedia)

"He polished at the handle so carefully, that now he is ruler of the Queen's printing press."  Did you get that?   He went on the Fed in 2002 and in 2005 was Greenspan's heir apparent.

The first thing he did while waiting for Greenspan to leave was to declare M3 numerus non grata.    "M3: M2 + all other CDs (large time deposits, institutional money market mutual fund balances), deposits of eurodollars and repurchase agreements." 
"When the Federal Reserve announced in 2005 that they would cease publishing M3 statistics in March 2006, they explained that M3 did not convey any additional information about economic activity compared to M2, and thus, "has not played a role in the monetary policy process for many years." Therefore, the costs to collect M3 data outweighed the benefits the data provided. Some politicians have spoken out against the Federal Reserve's decision to cease publishing M3 statistics and have urged the U.S. Congress to take steps requiring the Federal Reserve to do so."  

So Ben Bernanke saved the planet by hiding repurchase agreements from public view. They could cause projectile vomiting by graduate students and assistant untenured professors.

I only had a year in business school and there are a lot of phi beta kappas here.  Can somebody tell me whether or not repurchase agreements are the stuff of TARPs or QEs or am I hallucinating?

Inquiring minds want to know.

Wed, 10/05/2011 - 04:35 | 1740402 Shylockracy
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The mishpuka triumphs again! Let us rejoice!

Haaava naguila haaaava naguila, naguila havaaa...

Wed, 10/05/2011 - 04:52 | 1740413 I am Jobe
I am Jobe's picture

I second that. Let the beheading begin. F the SEC. They are in bed with the banksters.

Wed, 10/05/2011 - 04:54 | 1740414 Wakanda
Wakanda's picture

BO is preparing to try to appear as a "POTUS in control" and will order a "sacrifice" resignation from within the administration.  It could be Mary Shapiro, but I expect someone with better name recognition like Timmy G.

Really doesn't matter who, it's all theatre for the sheeple.  This ship is goin' down.

12 days until Black Monday II

Wed, 10/05/2011 - 05:33 | 1740424 jomama
jomama's picture

hats off to your great work TD, ZH has led the charge against the unjust, corrupt, and flat-out criminal system we live in.

however- there is no accountability, no justice, and apparently no right vs. wrong under our current plutocracy. 

expect nothing less.

Wed, 10/05/2011 - 05:35 | 1740426 Moocao
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Zerohedgers

 

I have been on this forum for 3 weeks and some, and I have learned a lot from this community of sharp minded, no nonsense, no BS, extremely intelligent individuals, and I would like to thank Tyler for illuminating the many ills and greed and horrid practices currently plaguing our finances and our world. I am happy that my eyes are opened.

 

I also learned that this forum has many sharp minded and extremely pessimistic individuals who are waiting for the end to come, with no hope, no belief, and just waiting for the end to come

 

What is it isn't the end? So what if the financial community collapses? So what if the USA defaults? We are the fabric of society, you, me, every living soul in this domain is the fabric of our reality. I believe in a better future, even if we have to go through hell for awhile. I believe that with all of you, we can still make a better future. I sincerely thought about this for awhile. Debts, money, USD, Gold, Silver, etc. These are just stores of value of our individual labor, they do not represent us. We are the masters of our own fates. Not the Government, not the stock market, not Wall Street, we are our own masters, we create wealth and happiness. In the end, when it comes, we are the salt of the world, the light to shine the darkness around us

All of you have the pessimistic view of the future, and indeed it is grim. My first 2 weeks in this forum gave me nightmares of what the future portends. Famine, War, Pestilence, Death. All of them flashed their powers in front of my eyes. Then, call it inspiration, call it Hope, call it Faith, call it whatever, it came to me. We have survived World Wars, we have survived the threat of Fascism, Communism, Colonialism, we can still do so again. We are better educated than 1911. There are more enlightened individuals here than I can remember through my perusal of history books. We can do better than our forfathers still, even if our world crumbles, we can still build it back. Our current failed Order will come Chaos. Out of Chaos, however, will be Order. And we shall be the light within the darkness. We need to come up with a better system

I hope that my message of hope can resonate. All of you have IQ beyond mine I think, but all of you lack something I have. I have Hope, and I want you all to think on how to create communities of hope. A sustainable community where we create and we do not consume more than we need, where we create wealth for generations. We need to create a sustainable system that will benefit not just our children, but for the children of our children and beyond. We may not all survive, but the idea will. And that my friends, is the key to everlasting life. We will create a concept, a philosophy, that will create Order out of Chaos. We need to, because our children depends on it.

 

Thank you for your time. I will try to post this everywhere so everyone who can see this message can think and try to build a community of hope around them. With all of your intelligence, and perhaps with a new sense of hope and purpose, we can recreate our country again. Long Live our Republic of USA

Wed, 10/05/2011 - 06:07 | 1740436 Element
Element's picture

Don't get bummed-out ... most are just stark realists, and most are not afraid of what's coming, and they are aware of what it will be.

 

"My first 2 weeks in this forum gave me nightmares of what the future portends. Famine, War, Pestilence, Death."

 

Forget it, that stuff is that same as it ever woz .. almost everywhere but in the USSA ... no biggie ... just a different dynamic to cope and adjust to when it comes ... roll with the punches.

However ... on a long enough timeline ... you are still going to face the worst thing there is ... so best to face it now ... and live with it ... before the finale.

BTW. A friendly heads-up, don't get preachy, or presume to build a 'community' ... we have one ... you fit in with it ... or you fuck off ... ok?

Wed, 10/05/2011 - 06:24 | 1740447 Anonymouse
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"The future is not set. There is no fate but what we make for ourselves." - Kyle Reese

Wed, 10/05/2011 - 06:48 | 1740456 Element
Element's picture

"By the time Skynet became self-aware it had spread into millions of computer servers across the planet. Ordinary computers in office buildings, dorm rooms; everywhere. It was software; in cyberspace. There was no system core; it could not be shutdown. The attack began at 6:18 PM, just as he said it would. Judgment Day, the day the human race was almost destroyed by the weapons they'd built to protect themselves. I should have realized it was never our destiny to stop Judgment Day, it was merely to survive it, together. The Terminator knew; he tried to tell us, but I didn't want to hear it. Maybe the future has been written. I don't know; all I know is what the Terminator taught me; never stop fighting. And I never will. The battle has just begun." - John Connor

Wed, 10/05/2011 - 05:44 | 1740430 Monedas
Monedas's picture

The Cancer of Socialism has metastasized ! The Hicks of Ft. Arkansas, to their credit, have the dubious honor of being the last outpost to fall ! Shapiro is just another cancer cell who happens to be Jewish ! Monedas 2011 Unofficial Spokesman for the Jewish People

Wed, 10/05/2011 - 06:03 | 1740439 Seer
Seer's picture

After the 9/11 Commission Report can anyone really expect the truth from ANY commission?

Wed, 10/05/2011 - 06:18 | 1740443 Anonymouse
Anonymouse's picture

Looks like the ugly turn of this thread has been purged.  Probably for the best.  It certainly distracted from the important aspects of the story itself

Wed, 10/05/2011 - 07:11 | 1740504 karzai_luver
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You ain't seen ugly yet sonny.

 

 

Wed, 10/05/2011 - 08:20 | 1740655 Anonymouse
Anonymouse's picture

Only when I look in the mirror, pappy.

Wed, 10/05/2011 - 06:22 | 1740445 Monedas
Monedas's picture

Ben "Binky" Bernanke and the other members of the Billion Socialists Boys Club used to contain the PMs with begnign neglect, ridicule, leftist ostracism and market manipulation, etc. !  It hasn't worked ! Now they are getting threatening and nasty and desperate ! The surest way to kick Binky's ass is to get the PMs into private hands ! Monedas 2011 Comedy Jihad World Tour

Wed, 10/05/2011 - 07:27 | 1740529 pagan
pagan's picture

This comes from Europe (Sweden)

That Jews rule the US is a very simple fact. I mean totally. Yanks themselves who are in political/power situation knows this very well. If they don't bend to the rules they are out. Simple as that.

Take New York(Hymie town, kike town) the commercial capital of the world, totally ruled by Joos (no misspelling). All-American apple-pie Yanks from the mid-west and the west, in a cultural way understand this, but they see them as Europeans not as Joos(no misspelling).

 

How the fokk is this stupidness possible? Simple answer Christianity.  Total Joo (no misspelling) religion. Jesus was a Joo (no mispelling). Then in the US you got a very, very, very OLD TESTAMENT version of christianity with the Puritans. They loved the old testament so much that all their children got strange Jooish (no misspelling) names. Like Obadiah or Joshua? No real European would name a son from a name from the middle-east.

Well, maybe if my wife was an Arab and I loved her very much.

 

Am I a humble trader? Yes, I am.

PS: The whole world knows, those who have at least half of a brain, as a very simple fact THAT THE USA IS 100% ruled BY JOOS(no misspelling).

 

 

Wed, 10/05/2011 - 09:08 | 1740833 Anonymouse
Anonymouse's picture

Brilliant analysis.  You clearly demonstrated that you are among the select few with half a brain.

But I'm curious.  Is "Joo" a misspelling?

 

Fri, 10/07/2011 - 16:16 | 1750978 pagan
pagan's picture

Dammit!

You got me there, you rascal. it's Jew! Isn't it.

Wed, 10/05/2011 - 07:36 | 1740561 Die Weiße Rose
Die Weiße Rose's picture

Tues 4 oct 2011 15:30 ET

ALERT: there has been an unexplained Flash-Crash to the upside

into the close of trade, the Dow flash-crashed upwards more than 400 points.

ZH blamed it on Rumours in the FT about Debt restructure of European Banks...

or could it have been the 4.59 billion Pomo that was launched by the Fed as part of operation Twist?

since no-one complained to the SEC we will probably never find out...

why would anyone complain if the HFT Trades go their way ?

The game is called addiction to the casino-game of Fear and Greed.

Gamblers who complain will always come back, to lose more...

no matter how rigged the Game.

wr;)

Wed, 10/05/2011 - 08:24 | 1740662 Anonymouse
Anonymouse's picture

Given the market has not reversed, with that rumor being dispelled (per ZH about an hour ago), I tend to agree.

Though I was thinking more that it was PPT rather than POMO.

Has anyone seen other theories?  

What about the sell-off in Gold and Silver continuing?  That's in spite of gold being eligible for collateral, regardless of currency moves, and regardless of direction of market in US or Europe.  Those seem to dispel the earlier theories of margin increases, dollar strength, and HF losses.

Wed, 10/05/2011 - 08:45 | 1740727 MFL8240
MFL8240's picture

Cant be follish enough to believe the Gold and Silver will be fairly traded, it is all about power and a concerted effort to detroy any alternative to the confetti machine.

Wed, 10/05/2011 - 09:04 | 1740820 Anonymouse
Anonymouse's picture

You may be right, but I was wondering if anyone has heard anything a bit more concrete

Wed, 10/05/2011 - 08:43 | 1740717 MFL8240
MFL8240's picture

The never ending tale of America ruined by the Jewish Banking Cartel.  Another courrpt Jew banking theif and no one says a fuckin word, of course she will be replaced by yet another one from the same tribe.  Just disgusting.  Hang the fuckin bitch!

Wed, 10/05/2011 - 08:45 | 1740725 Anonymouse
Anonymouse's picture

The fact that she may be Jewish has nothing to do with this.  Why do you find that to be a relevant adjective?

Wed, 10/05/2011 - 08:46 | 1740731 MFL8240
MFL8240's picture

Busslhit, this whole group is greedy and out of control.

Wed, 10/05/2011 - 08:48 | 1740735 MFL8240
MFL8240's picture

Because its true,  I was raised by Jewish people I can call it as I see it.

Wed, 10/05/2011 - 09:02 | 1740790 Anonymouse
Anonymouse's picture

So you are saying either 1) if she were not Jewish she would not have done it, or 2) if she were not Jewish she might have done the same thing but it would not be as bad.  

Otherwise, your adjective is irrelevant.  

You claim it is relevant (due to your parents???), so it must be either 1 or 2.

Wed, 10/05/2011 - 09:09 | 1740855 MFL8240
MFL8240's picture

No, you need to read more carefully.  the whole banking sytem and fincial markets are littered with nothing but Jewish people.  The courrption in this sector is astonishing in the past 3 years.  I am simply making the assessment that is its just another one that is courrpt and it is a cartel that replaces one with the other.

 

IN NO WAY IS THIS AN ASSAULT ON JEWISH PEOPLE, THAT WOULD BE RIDICULOS TO DO.  THIS IS SOLEY DIRECTED AT THE BERNANKE, GEITHNER, BLANFIELD, DIMON CROWN AND ALL THEIR FRIENDS.  GET IT NOW?

Wed, 10/05/2011 - 09:24 | 1740927 Anonymouse
Anonymouse's picture

No I don't get it.  If it is not an assault on Jewish people (surely an unknown occurence on ZH) then why mention her being Jewish.  Her being Jewish neither mitigates nor exacerbates the extent of her misdeeds.

I agree that anger, ridicule, prosecution should be directed at Bernanke, Geithner, etc.  Those individuals have wrecked the economy.

I think if you look into the banking and financial markets you'll fin more than a few non-Jews.  Some of them are actually corrupt too.  Not because they are not Jewish, but because they are corrupt.

You could just as well say the system is run by bi-peds, those bastards.  Steven Hawking wouldn't have done that.  It's those bi-peds.

Point is, if you don't mean to indict all Jews, you'd be taken more seriously to stick to the facts of those corrupt individuals, and not what their race or religion happens to be.

p.s. To the person who has placed me on auto-junk status, you missed one.  See my Terminator comment above.  Just trying to help you out.  You're welcome

Wed, 10/05/2011 - 09:00 | 1740784 spjk2k
spjk2k's picture

veritas et aequitas.

Wed, 10/05/2011 - 09:05 | 1740827 JohnFrodo
JohnFrodo's picture

Has there ever been a report about the airline shorts before 911?

Wed, 10/05/2011 - 09:33 | 1740995 AnonymousMonetarist
AnonymousMonetarist's picture

Barclays?

Seriously, hoocoodanode?'

 

'Well aside from the obvious reason, one might note from reading between the lines that Barclays most certainly falls under the auspices of the aforementioned 'others' and in part, or perhaps in whole, the enabler for this hatchet job. Universa placed their order on Barclays trading desks, Barclays was selling hard, and a market data feed at Barclays that delivers data on "buy" and "sell" orders went down, although a backup data system purportedly went 'immediately online'. Although Barclays disingenuously 'declined to comment' for the article, their head of electronic trading is cited once and the bank is named seven other times in this missive, suggesting someone over there was squawking and deflecting.'

 

http://anonymousmonetarist.blogspot.com/2010/05/randomwalkins-not-pinin-barclays-tis.html

Wed, 10/05/2011 - 09:33 | 1740996 AnonymousMonetarist
AnonymousMonetarist's picture

Barclays?

Seriously, hoocoodanode?'

 

'Well aside from the obvious reason, one might note from reading between the lines that Barclays most certainly falls under the auspices of the aforementioned 'others' and in part, or perhaps in whole, the enabler for this hatchet job. Universa placed their order on Barclays trading desks, Barclays was selling hard, and a market data feed at Barclays that delivers data on "buy" and "sell" orders went down, although a backup data system purportedly went 'immediately online'. Although Barclays disingenuously 'declined to comment' for the article, their head of electronic trading is cited once and the bank is named seven other times in this missive, suggesting someone over there was squawking and deflecting.'

 

http://anonymousmonetarist.blogspot.com/2010/05/randomwalkins-not-pinin-barclays-tis.html

Wed, 10/05/2011 - 10:33 | 1741236 Monedas
Monedas's picture

Jews have to adapt to their environment just like one of Darwin's moths has to find a tree with bark the same color as his wings ! If America is run by Socialists, and it is, they have to fit in ! Now, stop pickin' on my little Jewish moths ! Monedas 2011 Try fiting in Syria....even if you're Muslim ?

Wed, 10/12/2011 - 12:03 | 1766045 karmete
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Well done! Thank you very much for professional templates and community edition sesli chat sesli sohbet

Tue, 07/17/2012 - 11:32 | 2624409 not fat not stupid
not fat not stupid's picture

oh god yes, please please throw them all out. please. dear god in heaven please.

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