Market Crash forecast suggests new 9/11

[ranmaniac]

"A mystery trader risks losing around $1 billion dollars after placing 245,000 put options on the Dow Jones Eurostoxx 50 index, leading many analysts to speculate that a stock market crash preceded by a new 9/11 style catastrophe could take place within the next month."

The rest of the article is continued here:


http://www.infowars.com/articl...t_suggests_new_911.htm

 

[noto12ious]

9/11 itself was foreshadowed by unprecedented put options that were placed on United and American Airlines. Though the Securities and Exchange Commission refused to reveal who placed the options, private researchers traced the investments back to the Deutsche Bank owned Banker's Trust, which was formerly headed by then Executive Director of the CIA, Buzzy Krongard

remember, the 9/11 commission told us that the 9/11 money trails and put options were of no importance...

go back to sleep...

 

[wazzledoozle]

Might not be a terrorist attack. Financial maneuver by China perhaps? Or a major bank going bankrupt.

 

[Moonbeam]

I'm going to do the same so I can be the first monkey see monkey do to cash in on this lie induced stampede. Then I'm going to get it rolling by running down to the stock market and saying BOO!

The beautiful thing about fear greed and psychosis is that you don't actually have to have them to profit off them.

 

[Pliablemoose]

I have a feeling the Fed may not reduce the prime rate (or at least the uncertainty that the Fed won't reduce the prime rate), combined with the sub prime ripple through the markets plus the historical poor performance of the market through Sept & Oct give me pause...

 

[dmcowen674]

Originally posted by: ranmaniac
"A mystery trader risks losing around $1 billion dollars after placing 245,000 put options on the Dow Jones Eurostoxx 50 index, leading many analysts to speculate that a stock market crash preceded by a new 9/11 style catastrophe could take place within the next month."

The rest of the article is continued here:

http://www.infowars.com/articl...t_suggests_new_911.htm

That would be a hoot if Terrists are funded by the Stock Market now.

Love to see what the resident Republicans excuses in here for that.

 

[LegendKiller]

Originally posted by: noto12ious

9/11 itself was foreshadowed by unprecedented put options that were placed on United and American Airlines. Though the Securities and Exchange Commission refused to reveal who placed the options, private researchers traced the investments back to the Deutsche Bank owned Banker's Trust, which was formerly headed by then Executive Director of the CIA, Buzzy Krongard

remember, the 9/11 commission told us that the 9/11 money trails and put options were of no importance...

go back to sleep...

http://www.snopes.com/rumors/putcall.asp

http://archive.newsmax.com/arc...s/2002/6/2/62018.shtml

When somebody goes long a lot of stocks, they naturally hedge that position using puts. It's a completely normal transaction that defends the downside to any transaction and the actions were seen long before 9/11/2001. In fact, the positions were completely common to what happens in traditional fall times, when a lot of market corrections happen. That the country was already in a mailaise due to the IT bust has a direct affect on travel.

Who'd think that now, as the subprime bubble continues to burst, that somebody would either want to hedge a position, or they would want to profit from an impending downturn. Many economists predict the DJIA to hit 11,000 by the end of the year.

Wow, just imagine that people would take cheap positions to take advantage of this!?!?!?

More ignorance from people who want to remain ignorant while pointing fingers at ghostly apparitions so they can remain ignorant.

 

[alchemize]

Snopes versus infowars? Bah! Go back to sleep

By the way, there was an EXCELLENT 2 hour program on the History Channel. "The 9/11 Conspiracies: Fact or Fiction". Basically it interviewed both the conspiracy whackjobs (loose change, etc.) and then the experts, methodically point-by-point. Several of the witnesses were quite irrefutable - i.e. the structural engineer that was at the pentagon just hours afterwards. It addressed pretty much everything you'll ever see the tinfoilers bring up...worth a watch.


http://www.history.com/shows.d...etail&episodeId=242324

 

[Bowfinger]

Originally posted by: LegendKiller
http://www.snopes.com/rumors/putcall.asp

http://archive.newsmax.com/arc...s/2002/6/2/62018.shtml

When somebody goes long a lot of stocks, they naturally hedge that position using puts. It's a completely normal transaction that defends the downside to any transaction and the actions were seen long before 9/11/2001. In fact, the positions were completely common to what happens in traditional fall times, when a lot of market corrections happen. That the country was already in a mailaise due to the IT bust has a direct affect on travel.

Who'd think that now, as the subprime bubble continues to burst, that somebody would either want to hedge a position, or they would want to profit from an impending downturn. Many economists predict the DJIA to hit 11,000 by the end of the year.

Wow, just imagine that people would take cheap positions to take advantage of this!?!?!?

More ignorance from people who want to remain ignorant while pointing fingers at ghostly apparitions so they can remain ignorant.

Great information, thank you. One question: is the $1 billion put mentioned in the OP fairly ordinary, or is it unusual enough to warrant attention?

 

[Bowfinger]

Originally posted by: alchemize
Snopes versus infowars? Bah! Go back to sleep

By the way, there was an EXCELLENT 2 hour program on the History Channel. "The 9/11 Conspiracies: Fact or Fiction". Basically it interviewed both the conspiracy whackjobs (loose change, etc.) and then the experts, methodically point-by-point. Several of the witnesses were quite irrefutable - i.e. the structural engineer that was at the pentagon just hours afterwards. It addressed pretty much everything you'll ever see the tinfoilers bring up...worth a watch.


http://www.history.com/shows.d...etail&episodeId=242324

Sounds interesting, I'll have to look for that. What did they have to say about the collapse of WTC7? That's the one I always found suspect.


Edit: Doesn't appear to be on again in the next week, unfortunately.

 

[laFiera]

Originally posted by: alchemize
Snopes versus infowars? Bah! Go back to sleep

By the way, there was an EXCELLENT 2 hour program on the History Channel. "The 9/11 Conspiracies: Fact or Fiction". Basically it interviewed both the conspiracy whackjobs (loose change, etc.) and then the experts, methodically point-by-point. Several of the witnesses were quite irrefutable - i.e. the structural engineer that was at the pentagon just hours afterwards. It addressed pretty much everything you'll ever see the tinfoilers bring up...worth a watch.


http://www.history.com/shows.d...etail&episodeId=242324

who is the janitor that is on tour saying something about explosives? was he on it?
he always seems to be ignored by the main media, and well, if he was the janitor with all the keys, I would be more inclined to listened to what he had to say.

 

[imported_Shivetya]

Originally posted by: dmcowen674

Originally posted by: ranmaniac
"A mystery trader risks losing around $1 billion dollars after placing 245,000 put options on the Dow Jones Eurostoxx 50 index, leading many analysts to speculate that a stock market crash preceded by a new 9/11 style catastrophe could take place within the next month."

The rest of the article is continued here:

http://www.infowars.com/articl...t_suggests_new_911.htm

That would be a hoot if Terrists are funded by the Stock Market now.

Love to see what the resident Republicans excuses in here for that.

simple, they are obviously smarter than Democrats and invest wisely. Much better than going for smokes, liquour, and lottery tickets, while waiting on your next check from the government.

 

[ranmaniac]

Originally posted by: laFiera

Originally posted by: alchemize
Snopes versus infowars? Bah! Go back to sleep

By the way, there was an EXCELLENT 2 hour program on the History Channel. "The 9/11 Conspiracies: Fact or Fiction". Basically it interviewed both the conspiracy whackjobs (loose change, etc.) and then the experts, methodically point-by-point. Several of the witnesses were quite irrefutable - i.e. the structural engineer that was at the pentagon just hours afterwards. It addressed pretty much everything you'll ever see the tinfoilers bring up...worth a watch.


http://www.history.com/shows.d...etail&episodeId=242324

who is the janitor that is on tour saying something about explosives? was he on it?
he always seems to be ignored by the main media, and well, if he was the janitor with all the keys, I would be more inclined to listened to what he had to say.

That janitor would be William Rodriguez, and yes, he worked at the WTC for 20 years, and was one of the only people to have a master key, the rest were owned by the Port Authority, and they fled the building.

Here's a link to the video of his account:

http://video.google.com/videop...&type=search&plindex=0

 

[ScottMac]

Bowfinger: "Sounds interesting, I'll have to look for that. What did they have to say about the collapse of WTC7? That's the one I always found suspect. "

I wasn't able to devote my full attention, but I believe they brought up that the building was permitted to burn for ~ eight hours before it collapsed, and it took some shock and fallout damage from the WTC 1 & 2.

The experts they interviewed all pretty much agreed that WTC7's behavior was pretty much normal for the circumstances, nothing shady, etc.

Catch the show if you can, it was very good (at least, the parts I saw were ).

 

[LegendKiller]

Originally posted by: Bowfinger

Originally posted by: LegendKiller
http://www.snopes.com/rumors/putcall.asp

http://archive.newsmax.com/arc...s/2002/6/2/62018.shtml

When somebody goes long a lot of stocks, they naturally hedge that position using puts. It's a completely normal transaction that defends the downside to any transaction and the actions were seen long before 9/11/2001. In fact, the positions were completely common to what happens in traditional fall times, when a lot of market corrections happen. That the country was already in a mailaise due to the IT bust has a direct affect on travel.

Who'd think that now, as the subprime bubble continues to burst, that somebody would either want to hedge a position, or they would want to profit from an impending downturn. Many economists predict the DJIA to hit 11,000 by the end of the year.

Wow, just imagine that people would take cheap positions to take advantage of this!?!?!?

More ignorance from people who want to remain ignorant while pointing fingers at ghostly apparitions so they can remain ignorant.

Great information, thank you. One question: is the $1 billion put mentioned in the OP fairly ordinary, or is it unusual enough to warrant attention?

That wouldn't be all that strange, especially if somebody with a 1BN broad based DJIA market exposure wanted to hedge their portfolio. Any smart portfolio manager who expects a market downturn will hedge their position.

Naturally people are trying to make this huge connection. The 9/11 incident was a non-event, the number of options traded weren't huge and corresponded with normal transaction sizes. That the put/call ratio was out of whack only indicates that people were bearish about the airline's near-term prospects, especially since that is close to a quarter end. Only 22M was netted from several transaction parties, not just one. This isn't a huge amount, especially after you remove the option premium costs. Of course nobody mentions the diminimus amount, nor do they mention that this was entirely within the scope of normal put/call trading. They attempt to make a random market movement a huge deal by correlating it to 9/11.

They are now attempting to do the same thing with the current market. That's funny considering that the Fed meets in Sept for a potential rate cut, nobody knows what the next subprime timebomb is, when it will explode, and who it will hurt. Furthermore, nobody knows how housing will go, most are getting more bearish on it, especially in light of the latest Shiller Index information, somewhat declning consumer sentiment, and increasing rates of foreclosure and delinquencies in even prime mortgages.

It's funny that everybody will ignore these facts and, instead, will present some moronic conspiracy theory, if only to feed their inability or unwillingness to understand the movements of the financial markets. Spectral conspiracies and shadowy organizations rule the mind of the uneducated and naive. Of course, I am not so foolish to think that they are wrong in all cases, since I do have my own healthy distrust of certain organizations, but this type of ignorance of the truth is amusingly stupid.

 

[imported_Tango]

Originally posted by: LegendKiller

Originally posted by: Bowfinger

Originally posted by: LegendKiller
http://www.snopes.com/rumors/putcall.asp

http://archive.newsmax.com/arc...s/2002/6/2/62018.shtml

When somebody goes long a lot of stocks, they naturally hedge that position using puts. It's a completely normal transaction that defends the downside to any transaction and the actions were seen long before 9/11/2001. In fact, the positions were completely common to what happens in traditional fall times, when a lot of market corrections happen. That the country was already in a mailaise due to the IT bust has a direct affect on travel.

Who'd think that now, as the subprime bubble continues to burst, that somebody would either want to hedge a position, or they would want to profit from an impending downturn. Many economists predict the DJIA to hit 11,000 by the end of the year.

Wow, just imagine that people would take cheap positions to take advantage of this!?!?!?

More ignorance from people who want to remain ignorant while pointing fingers at ghostly apparitions so they can remain ignorant.

Great information, thank you. One question: is the $1 billion put mentioned in the OP fairly ordinary, or is it unusual enough to warrant attention?

That wouldn't be all that strange, especially if somebody with a 1BN broad based DJIA market exposure wanted to hedge their portfolio. Any smart portfolio manager who expects a market downturn will hedge their position.

Naturally people are trying to make this huge connection. The 9/11 incident was a non-event, the number of options traded weren't huge and corresponded with normal transaction sizes. That the put/call ratio was out of whack only indicates that people were bearish about the airline's near-term prospects, especially since that is close to a quarter end. Only 22M was netted from several transaction parties, not just one. This isn't a huge amount, especially after you remove the option premium costs. Of course nobody mentions the diminimus amount, nor do they mention that this was entirely within the scope of normal put/call trading. They attempt to make a random market movement a huge deal by correlating it to 9/11.

They are now attempting to do the same thing with the current market. That's funny considering that the Fed meets in Sept for a potential rate cut, nobody knows what the next subprime timebomb is, when it will explode, and who it will hurt. Furthermore, nobody knows how housing will go, most are getting more bearish on it, especially in light of the latest Shiller Index information, somewhat declning consumer sentiment, and increasing rates of foreclosure and delinquencies in even prime mortgages.

It's funny that everybody will ignore these facts and, instead, will present some moronic conspiracy theory, if only to feed their inability or unwillingness to understand the movements of the financial markets. Spectral conspiracies and shadowy organizations rule the mind of the uneducated and naive. Of course, I am not so foolish to think that they are wrong in all cases, since I do have my own healthy distrust of certain organizations, but this type of ignorance of the truth is amusingly stupid.

Ok... and 1 billion dollars in put options is a hedge for... what exactly? You are talking about 1/10th the total controlled asset value of most middle sized hedge funds... quite a hell of a hedge for a single operation with a 30 days time horizon...

 

[Bowfinger]

Thanks to both ScottMac and LegendKiller. I appreciate your insights.

:beer:

 

[LegendKiller]

Originally posted by: Tango

Originally posted by: LegendKiller

Originally posted by: Bowfinger

Originally posted by: LegendKiller
http://www.snopes.com/rumors/putcall.asp

http://archive.newsmax.com/arc...s/2002/6/2/62018.shtml

When somebody goes long a lot of stocks, they naturally hedge that position using puts. It's a completely normal transaction that defends the downside to any transaction and the actions were seen long before 9/11/2001. In fact, the positions were completely common to what happens in traditional fall times, when a lot of market corrections happen. That the country was already in a mailaise due to the IT bust has a direct affect on travel.

Who'd think that now, as the subprime bubble continues to burst, that somebody would either want to hedge a position, or they would want to profit from an impending downturn. Many economists predict the DJIA to hit 11,000 by the end of the year.

Wow, just imagine that people would take cheap positions to take advantage of this!?!?!?

More ignorance from people who want to remain ignorant while pointing fingers at ghostly apparitions so they can remain ignorant.

Great information, thank you. One question: is the $1 billion put mentioned in the OP fairly ordinary, or is it unusual enough to warrant attention?

That wouldn't be all that strange, especially if somebody with a 1BN broad based DJIA market exposure wanted to hedge their portfolio. Any smart portfolio manager who expects a market downturn will hedge their position.

Naturally people are trying to make this huge connection. The 9/11 incident was a non-event, the number of options traded weren't huge and corresponded with normal transaction sizes. That the put/call ratio was out of whack only indicates that people were bearish about the airline's near-term prospects, especially since that is close to a quarter end. Only 22M was netted from several transaction parties, not just one. This isn't a huge amount, especially after you remove the option premium costs. Of course nobody mentions the diminimus amount, nor do they mention that this was entirely within the scope of normal put/call trading. They attempt to make a random market movement a huge deal by correlating it to 9/11.

They are now attempting to do the same thing with the current market. That's funny considering that the Fed meets in Sept for a potential rate cut, nobody knows what the next subprime timebomb is, when it will explode, and who it will hurt. Furthermore, nobody knows how housing will go, most are getting more bearish on it, especially in light of the latest Shiller Index information, somewhat declning consumer sentiment, and increasing rates of foreclosure and delinquencies in even prime mortgages.

It's funny that everybody will ignore these facts and, instead, will present some moronic conspiracy theory, if only to feed their inability or unwillingness to understand the movements of the financial markets. Spectral conspiracies and shadowy organizations rule the mind of the uneducated and naive. Of course, I am not so foolish to think that they are wrong in all cases, since I do have my own healthy distrust of certain organizations, but this type of ignorance of the truth is amusingly stupid.

Ok... and 1 billion dollars in put options is a hedge for... what exactly? You are talking about 1/10th the total controlled asset value of most middle sized hedge funds... quite a hell of a hedge for a single operation with a 30 days time horizon...

Who said it was a hedge fund? It could be any mutual fund or anything else. It isn't inconceivable that somebody would want a short-term hedge for a lot of reasons. Heck I know of a place that took out a massive IR hedge to guard against a rate movement for 2 months, we're talking about in the area of 15bn, one of the largest hedges ever made by a single institution. It turned out to be nothing major, but in their minds the premium was well spent as opposed to taking huge rate risk.

I suppose that was related to some type of terrorist event that never materialized either. People will try to add 1+1 to anything.

 

[Vic]

Originally posted by: Bowfinger

Originally posted by: alchemize
Snopes versus infowars? Bah! Go back to sleep

By the way, there was an EXCELLENT 2 hour program on the History Channel. "The 9/11 Conspiracies: Fact or Fiction". Basically it interviewed both the conspiracy whackjobs (loose change, etc.) and then the experts, methodically point-by-point. Several of the witnesses were quite irrefutable - i.e. the structural engineer that was at the pentagon just hours afterwards. It addressed pretty much everything you'll ever see the tinfoilers bring up...worth a watch.


http://www.history.com/shows.d...etail&episodeId=242324

Sounds interesting, I'll have to look for that. What did they have to say about the collapse of WTC7? That's the one I always found suspect.


Edit: Doesn't appear to be on again in the next week, unfortunately.

They said the North Tower fell on it and had more evidence and eyewitness testimony to that effect than you could ever hope for.

It really was a great episode, and should be required viewing for all the CT whackjobs. The ending is abolutely priceless -- in a beautifully subtle way that I would hate to spoil, it exposes the idiocy and for-profit motives behind groups selling the conspiracy theories, and the harm that the sheep who blindly follow these theories do (despite all the scientific evidence against them).
Look, on one side you have the solid scientific evidence that the impact of each one of the planes released energy in the close neighborhood of a 1 kiloton nuclear device. On the other side, you have wierdos screaming that the basic principle of steel that has made blacksmithing possible for thousands of years doesn't exist. Or that family members talking with loved ones on Flight 93 moments before their deaths were tricked by computer-generated voices. When the argument was "Bush funded Al-Queda!", I was almost there in agreement. When suddenly the planes that that thousands of witnesses saw were replaced by missiles, and the planes and their passengers suddenly disappeared entirely, I had to step away, the sheep were bleating too loudly.

Besides normal airing, I'm sure there are other ways to get the show

 

[theeedude]

The credit melt down is the new 9/11 economically. This country is so addicted to credit, it's going to go through some traumatic withdrawal symptoms when the supply gets tight.

 

[Wheezer]

Originally posted by: Bowfinger

Originally posted by: alchemize
Snopes versus infowars? Bah! Go back to sleep

By the way, there was an EXCELLENT 2 hour program on the History Channel. "The 9/11 Conspiracies: Fact or Fiction". Basically it interviewed both the conspiracy whackjobs (loose change, etc.) and then the experts, methodically point-by-point. Several of the witnesses were quite irrefutable - i.e. the structural engineer that was at the pentagon just hours afterwards. It addressed pretty much everything you'll ever see the tinfoilers bring up...worth a watch.


http://www.history.com/shows.d...etail&episodeId=242324

Sounds interesting, I'll have to look for that. What did they have to say about the collapse of WTC7? That's the one I always found suspect.


Edit: Doesn't appear to be on again in the next week, unfortunately.

I did not see all of it, but it was very good.

WTC7 was structurally flawed to start with. The way the building was constructed made it in no way possible for it to survive.

It was not constructed the way normal tall buildings are, it was designed around a truss system that supported the entire weight of the building, making vulnerable to collapse given the circumstances of 9/11 and the damage done to it from the falling debris from the other towers.

Wiki:

The building was constructed above a Con Edison substation, which had been on the site since 1967. The substation had a caisson foundation designed to carry the weight of a future building on the site, which would be 25 stories and contain 600,000 sq ft (55,700 m²)

The final design for 7 World Trade Center was for a much larger building, which also covered a significantly larger footprint than originally planned when the substation was built.

 

[fuzzybabybunny]

Originally posted by: Wheezer

Originally posted by: Bowfinger

Originally posted by: alchemize

I saw part of that as well.

The biggest thing I remember was one of the structural engineers, who has been doing his job for years and is now gray, who said this about the conspiracy theorists: "*sound of contempt* These people don't understand and they don't care to understand."

 

[Vic]

Originally posted by: fuzzybabybunny

Originally posted by: Wheezer

Originally posted by: Bowfinger

Originally posted by: alchemize

I saw part of that as well.

The biggest thing I remember was one of the structural engineers, who has been doing his job for years and is now gray, who said this about the conspiracy theorists: "*sound of contempt* These people don't understand and they don't care to understand."

Heh. I remember that part. That was awesome.

My fav part is still the ending, when the conspiracy theorizing talk radio host of KLBJ is pontificating about how he is akin to Galileo using science and knowledge to fight the flat-earthers.

 

[imported_Tango]

Originally posted by: LegendKiller

Originally posted by: Tango

Originally posted by: LegendKiller

Originally posted by: Bowfinger

Originally posted by: LegendKiller
http://www.snopes.com/rumors/putcall.asp

http://archive.newsmax.com/arc...s/2002/6/2/62018.shtml

When somebody goes long a lot of stocks, they naturally hedge that position using puts. It's a completely normal transaction that defends the downside to any transaction and the actions were seen long before 9/11/2001. In fact, the positions were completely common to what happens in traditional fall times, when a lot of market corrections happen. That the country was already in a mailaise due to the IT bust has a direct affect on travel.

Who'd think that now, as the subprime bubble continues to burst, that somebody would either want to hedge a position, or they would want to profit from an impending downturn. Many economists predict the DJIA to hit 11,000 by the end of the year.

Wow, just imagine that people would take cheap positions to take advantage of this!?!?!?

More ignorance from people who want to remain ignorant while pointing fingers at ghostly apparitions so they can remain ignorant.

Great information, thank you. One question: is the $1 billion put mentioned in the OP fairly ordinary, or is it unusual enough to warrant attention?

That wouldn't be all that strange, especially if somebody with a 1BN broad based DJIA market exposure wanted to hedge their portfolio. Any smart portfolio manager who expects a market downturn will hedge their position.

Naturally people are trying to make this huge connection. The 9/11 incident was a non-event, the number of options traded weren't huge and corresponded with normal transaction sizes. That the put/call ratio was out of whack only indicates that people were bearish about the airline's near-term prospects, especially since that is close to a quarter end. Only 22M was netted from several transaction parties, not just one. This isn't a huge amount, especially after you remove the option premium costs. Of course nobody mentions the diminimus amount, nor do they mention that this was entirely within the scope of normal put/call trading. They attempt to make a random market movement a huge deal by correlating it to 9/11.

They are now attempting to do the same thing with the current market. That's funny considering that the Fed meets in Sept for a potential rate cut, nobody knows what the next subprime timebomb is, when it will explode, and who it will hurt. Furthermore, nobody knows how housing will go, most are getting more bearish on it, especially in light of the latest Shiller Index information, somewhat declning consumer sentiment, and increasing rates of foreclosure and delinquencies in even prime mortgages.

It's funny that everybody will ignore these facts and, instead, will present some moronic conspiracy theory, if only to feed their inability or unwillingness to understand the movements of the financial markets. Spectral conspiracies and shadowy organizations rule the mind of the uneducated and naive. Of course, I am not so foolish to think that they are wrong in all cases, since I do have my own healthy distrust of certain organizations, but this type of ignorance of the truth is amusingly stupid.

Ok... and 1 billion dollars in put options is a hedge for... what exactly? You are talking about 1/10th the total controlled asset value of most middle sized hedge funds... quite a hell of a hedge for a single operation with a 30 days time horizon...

Who said it was a hedge fund? It could be any mutual fund or anything else. It isn't inconceivable that somebody would want a short-term hedge for a lot of reasons. Heck I know of a place that took out a massive IR hedge to guard against a rate movement for 2 months, we're talking about in the area of 15bn, one of the largest hedges ever made by a single institution. It turned out to be nothing major, but in their minds the premium was well spent as opposed to taking huge rate risk.

I suppose that was related to some type of terrorist event that never materialized either. People will try to add 1+1 to anything.

I assume it's a hedge fund because the overwhelming majority of mutual funds have internal regulations preventing them from these kind of operations: the time horizon is too short and the derivative instrument consequently too volatile.

I never said I think it was proof of an incoming terror attack. In my opinion there are two major hypothesis:

a) A quant fund had a computer-generated strategy fail, resulting in a disproportionate operation.

b) A hedge fund going bankrupt tries its last desperate operation, knowing it has almost zero possibility of success, but knowing also that almost zero is better that strictly zero.

Both scenarios happened many times in the last 5 years. Especially scenario B is quite common if you consider the way hedge funds work.

If you consider the size of the operation you must consider two possibilities when trying to guess who might have done it: either the fund who did it must be HUGE, so that a 1 billion loss can be considered a fair price of a hedge or the operation is speculative, thus basically ruling out the possibility of it being a mutual funds. There are not a lot of financial institutions in the world for which a 1 billion net loss in a month could be considered a fair price for a hedge against any kind of risk.

I don't believe in the possibility of this being the operation of a rogue trader having access to insider informations because it wouldn't make sense to make it a single operation. This way they have people knowing it and speculating on the reasons why, which defies the purpose of an operation made on the based of confidential infos.

 

[OokiiNeko]

Snopes versus infowars? Bah! Go back to sleep

Amazing. Alex Jones (infowars) has proof positive that he predicted a terrorist attack using airplanes on his radio show in July 2001. And yet, he is still dismissed out of hand.

Snopes is basing their assertion of falsehood on the 9/11 report???

If the 9/11 commission stated that the money was not important, how well do you think they investigated the money???



Move (shill) along. Nothing to (shill) see here.