In The "No Kidding?" Department This Morning in [Market-Ticker]

Posted 2012-03-08 08:32
by Karl Denninger
in Corruption

In The "No Kidding?" Department This Morning

I've written on this so many times that I can't count it. The infamous 2007 "August OpEx Surprise" discount rate cut was obviously leaked to the banks in question, as there was a monstrous increase in both call buying and financial stock volume the afternoon before the action.

This is a complete scam folks and always has been. I've been paying attention to this issue since the 1990s when it was clear that inside information was being used on government data releases.

Can someone find me just one example of a prosecution of a Wall Streeter for inside trading on government data releases? I can't recall it ever happening.

Reality is that there has always been an issue with government data being "glad-handed" to people ahead of time, and when it comes to thinks like Fed actions and such The Fed often actually polls primary dealers before it acts, either directly or indirectly.

At its core this system is corrupt and there is no real solution available until and unless the concept of "primary dealers" is eradicated. Why should the nation's largest commercial banks (along with foreign banks!) be given what amounts to not only a monopoly privilege on government borrowing? Not only do they get a captive "skim" on such issues, but in addition they wind up being part of the information conduit on policy actions and thus have the "privilege" of being able to steal from their customers on a routine basis as well!

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User Info	In The "No Kidding?" Department This Morning in forum [Market-Ticker]
Nomullet Posts: 6830 Incept: 2007-11-11 SW	Banks are doing Denial of Service attacks on government websites? ---------- Don't confuse clear thinking with simplistic thinking. --Nomullet 2012-03-08 08:46:15 Permalink
Crossthread Posts: 4568 Incept: 2007-09-04 Wilmington, NC	Seems like this video.... http://www.youtube.com/watch?v=c2bMzuI-v.... ---------- Cognitive Co-Dependency is when a normal rational person, internalizes irrational illogical presentations, and somehow reconciles them to fit their scripted indoctrination of logical analysis. Quote: Samuel L. Clemens:There is NO Native Criminal Class; EXCEPT for CONgress 2012-03-08 09:43:28 Permalink
Options Posts: 152 Incept: 2007-09-03 Chicago	It's almost funny that CNBS would even posture the fact the data isn't spread to privileged accounts. I chuckled when the talking girl feigned surprise that it was going on. Like it was a phantom or something. ---------- I think we should drink, heavily. 2012-03-08 09:51:12 Permalink
Tallystick Posts: 2231 Incept: 2009-09-20	Primary Dealer is a title of nobility. 2012-03-08 10:31:12 Permalink
Trades50 Posts: 4218 Incept: 2007-10-30 Land of Tax and Spend	It's acting surprised. It's election time. Obama has to appear that he' doing something about the criminal behavior. A dog and pony show. ---------- When the people fear the government, there is tyranny. When the government fears the people, there is liberty. - Thomas Jefferson 2012-03-08 10:50:54 Permalink
Jstanley01 Posts: 8182 Incept: 2008-07-30 San Antonio, Texas	CNBS Infotainment Babe wrote.. [Actually, and unbelievably, she said it:] It's an amazing prospect, because we've watched the numbers as they've come out here and thought, wow. The market is moving a little in advance, but never thinking that anything could possibly be getting out. Why? Because you and your kind in the MSM are irredeemably naive? Irretrievably stupid? Incorrigibly corrupt? Idiots of the first order? ---------- You can't cheat an honest man. ~P.T. Barnum Last modified: 2012-03-08 11:49:08 by jstanley01 2012-03-08 11:23:38 Permalink
Imustbenutz Posts: 283 Incept: 2010-11-04 Absurdistan, USSA	"Trading Places" was released in 1983. Front-running on information gained via illicit means has always been a part of our culture as has been the Bankster's immunity from prosecution. 2012-03-08 11:49:36 Permalink
Bubbazanetti Posts: 545 Incept: 2007-08-23 NOLA	Trading places, especially the last trading scene, is a great tool to teach high schoolers how trading works (except for the dishonest part). Actally, maybe the dishonest part is also educational. 2012-03-08 12:43:55 Permalink
Steelpiston71 Posts: 4868 Incept: 2007-09-05 Michigan	Becky Quick should be up for an Oscar with that incredulous act she put on. ---------- "We have resolution authority under Frank/Dodd... How about we USE IT?" Karl Denninger, 10/07/10 on the Dylan Ratigan Show, MSNBC. 2012-03-08 13:17:13 Permalink
Fnamekeith Posts: 470 Incept: 2008-04-07 Seattle	I guess I was the only person with their tin hat on when they saw this. Why would they suddenly care about this? Trades50's idea that it's a political "prosecution" play has some merit, but I think there's better higher-visibility ways to acheive that goal. My take is they want to further secure the real jobs data so that no one will be able to challenge their heavily "adjusted" data as the year progresses. ---------- Give a man a gun and he can rob a bank, give a man a bank and he can rob the world. 2012-03-08 13:29:24 Permalink
Mannfm11 Posts: 3556 Incept: 2009-02-28 DFW, Tx	I don't believe the public can trade this data. Wall street controls the initial reaction to this data regardless of the numbers. they move the asks upward and keep the bids in if they want the market to go up and visa versa. This is why the reactions to news isn't aways what we would assume. Why bull** is called sometimes and totally forgotten other times. Also, the trend of the market controls the amount of the move. We might as well be going to a fortune teller as guess what a move in the markets means. They make up why the markets move. Look at the Greek nonsense. As I type, the next video is playing and Crapper is blowing Bernanke. Bernanke is only helping these bastards steal and not doing anything good for the economy. The whole story is bull. That they steal data isn't bull and I don't think they need fast computers to steal it. The *ers are immune. ---------- The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith 2012-03-08 14:01:25 Permalink*
Ponzi_unit Posts: 8116 Incept: 2007-09-05 Online	'Brand new form of espionage' my ass. ---------- Taxpayers witnessed a crime and stayed around long enough to get charged with it. 2012-03-08 14:23:08 Permalink

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CNBS Infotainment Babe wrote..