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The same equity markets which have a “team” permanently dedicated to manipulating equity prices higher began a new era of fraud on May 6, 2010. When the mindless trading-algorithms which now control most U.S. equities trading all suddenly flipped to “sell”, U.S. equity markets had their most violent plunge in a quarter century.

What was the response of the U.S. government, and their pretend-regulators who operate their markets? They are canceling a vast and (as yet) undetermined number of trades. Essentially they are giving market insiders a “do-over” - presumably because Wall Street insiders were also caught by surprise, and thus unable to capitalize on whipsawing investors. In the permanently-pumped U.S. markets, those markets are now only allowed to fall if such a drop is desired by the Wall Street banksters who give U.S. 'regulators' their marching orders.

Supposedly, some “computer error” was the culprit for this crash. As is typical of compulsive liars, there is a kernel of truth buried in this massive lie. The crash was caused by computers, but there were no “errors” involved. U.S. equity markets have been pumped up to absurdly fraudulent levels – which are epitomized by the share prices of the Wall Street financial crime syndicate.

Those banks are hopelessly insolvent, as they continue to hide countless trillions in losses, courtesy of the mark-to-fantasy accounting rules which were enacted to save them from having to declare immediate bankruptcy. Meanwhile, their decade-long crime-spree is resulting in the beginnings of a tidal wave of litigation against the banksters, which will totally obliterate the Wall Street Oligarchs.

Home-builders are grossly inflated, as the “statistics” from the U.S. housing market are only surpassed by U.S. jobs-reports in their level of fraud. The next collapse of the U.S. housing sector is already underway.

Pretending that consumer spending is rising (through grossly understating inflation) has resulted in U.S. retailers also sitting at grossly inflated valuations. And the U.S. economy, as a whole, is poised for a more vicious collapse than during 2008, as “stimulus” is exhausted, and state and local governments prepare for the most-massive concentration of public sector lay-offs in U.S. history.

The Wall Street fraud-factories have been so smug in their new role as “Pied Pipers”: sending the contrived “signals” to the trading algorithms they control, in order to steer markets wherever they want (generally higher). As with all the other Wall Street fraud-schemes, this one too is doomed to failure – and for the same reason that all of Wall Street's other frauds are unraveling before our eyes: excessive greed.

U.S. equity markets have been pumped-up too high, and the inevitable consequence is that like the U.S. debt-mountains, U.S. equity markets are a teetering house-of-cards, ready for inevitable collapse. What we say yesterday will inevitably be repeated – and likely in a matter of weeks. There is only one, possible way that there will not be further massive-and-disorderly sell-offs in U.S. equity markets, if those markets are 'walked down' by the same Pied Pipers who manipulated them higher.

Consider the odd behavior in U.S. equity markets today: another fraudulent jobs report is out – this one claiming that the U.S. economy just experience its strongest jobs “growth” in four years. Prior to yesterday, that would have automatically resulted in a triple-digit gain for the Dow. This would have occurred irrespective of any other economic news in the world. Instead, we see a triple-digit loss today on the Dow, and further 'bleeding' with the NASDAQ and S&P 500.

It's quite possible that the banksters gave themselves a scare yesterday, with their own “high-frequency trading” Frankenstein slipping out of their control. As a result, they are now forced to take-down U.S. markets, themselves, in a graduated manner.

There is one other possible scenario here, which is much more intriguing. As I have pointed out in the past, you can only make money (i.e. cheat markets) for so long by pumping them higher. At some point (such as today) valuations get so totally disconnected from reality that there is no point in even trying to pump markets higher, as only the banksters themselves would be buying at such elevated levels.

Thus, it is inevitable with Wall Street's market-pumping that they would be forced to engineer a “crash” at some point. There are two obvious reasons for causing such an event. First of all, with Wall Street itself responsible for most of the market-pumping, they not only have the best knowledge of how excessive those valuations are, but can take markets down easily – simply by ceasing to manipulate them higher, and injecting a little truth into the reporting of U.S. economic ''statistics”. Secondly, at some point, U.S. markets must be 'reset' at a lower level – so the banksters can then embark on a new wave of (profitable) market-pumping.

As a result, we can predict with certainty that Wall Street insiders already had a “game-plan” for how and when they would engineer a U.S. market “crash” (after they had positioned themselves “short”). Indeed, given the parameters I mentioned previously, we can only assume that this “crash” was scheduled for some time around today.

Unfortunately for the banksters, a 'fly in the ointment' has ruined yet another one of their greedy schemes: the SEC legal action against Goldman Sachs (and the resulting explosion of litigation). That event was not in the banksters game-plan.

Because these oligarchies are hopelessly bankrupt, it is a somewhat dangerous game creating a crash in markets – since Wall Street banks are the most over-valued companies on the face of the Earth. Thus, when the crash began, it was important that the words which popped into investors' minds when they thought about these fraud-factories was “record profits”, rather than “tidal wave of litigation”.

With the very existence of Wall Street's #1 fraud-factory, Goldman Sachs, now seriously in doubt, suddenly this becomes a very, very bad time for U.S. equity markets to crash. Thus, we could have a scenario where Wall Street “shorts” had already purchased their party-hats, in anticipation of the vicious whipsawing which they had planned to inflict on investors at the present time, only to have to cancel the “party” - before it turned into their own funeral.

The same Pied Pipers who gleefully planned to lead investor-lemmings to the nearest cliff may now suddenly be forced to assume the role of shepherds – leading U.S. lemmings away from the cliff, because the Pied Pipers, themselves, would have also been pulled-down into their own destruction.

In the meantime, all investors should carefully consider the shocking actions by the U.S. government, in canceling thousands (millions?) of legitimate trades – simply because they didn't like the result. This is essentially the ultimate 'breach of contract', and a complete repudiation of the sham that the United States operates “free and open” equity markets.

What sane “investor” would put any money into a casino, where the casino-operators can simply cancel their 'bets' any time it doesn't like who came out on top? There might be some greedy, cynical, amoral individuals who think it is a great idea to invest in a market where if the trading results are really horrible they will simply be canceled. “

However, anyone looking at “the big picture” should be totally terrified of U.S. markets. First of all, it's not that U.S. equity markets will never be allowed to collapse. Rather, they will only be allowed to collapse when Wall Street is properly positioned first. Secondly, as we have seen with everything else the banksters do, success leads to excess.

Rescuing the banksters from their self-induced meltdown yesterday only means they will be emboldened still further to engage in even more extreme manipulations of U.S. markets – in both directions. Just as yesterday was a complete “shock” to market lemmings, when Wall Street does intend to precipitate a collapse in U.S. equity markets, they aren't going to warn the lemmings ahead of time.

Wall Street maximizes their profits only by having the maximum number of lemmings on the wrong side of trades (including their own clients). If the banksters will now be “bailed out” of their bad bets in equities trading, just like they were bailed-out of their bad bets in “securitizing” the U.S. mortgage market, this only means even more extreme swings in both directions.

Those foolish enough to put money into U.S. equity markets will exist in a permanent state of fear: never knowing whether valuations are based upon real “fundamentals” or whether they are simply being set up to be fleeced (again).

As regular readers know, I have routinely referred to U.S. equity markets as “rigged casinos”. To all the operators of genuine, rigged-casinos I offer my apologies. Even those cheats would not have the audacity to simply “cancel” the bets of gamblers – just because they didn't like the results.

Yesterday's events were a 'neon sign' to investors, advertising in the clearest terms that U.S. equity markets are entirely criminal operations. For those with money tied-up in this massive scam: flee before you lose every penny.

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written by sailortony, May 09, 2010

test from toughbook

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written by sailortony, May 09, 2010

test from mini laptop

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written by Jeff Nielson, May 08, 2010

Paxjds, what is so atrocious is how the media are failing us in treating these events as if there is nothing WRONG with what is going on. A year ago, we had the TSX shut-down for an entire DAY - on a day when gold was breaking out, and the gold MINERS were ready to breach some long-standing "resistance".

Meanwhile, on the smaller exchanges which remained open, I saw trading patterns where (on a day when bullion was breaking out) some the miners were DOWN as much as 50% on this limited trading.

The "excuse" was supposedly a "feed problem". How exactly can a modern stock exchange need an entire day to fix something as trivial as a feed-problem?

Once again, the blind/lazy/corrupt media saw no reason to ask any hard questions.

Yes, the differences between the "free" West and Soviet Russia dwindle day-by-day.

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written by paxjds, May 08, 2010

Just re-Read this article but substituted USSR(Soviet)/Russia for US and it took me back to Pre Berlin wall collapse days. This article could have been written by an underground Russian journalist and smuggled out to the West. You most certainly would have won the Nobel Peace Prize. Jeff, are you sure you did not take an old underground Soviet artice and just change it to US
??????

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