. . . . . Economic Attack Theory . . . . .
As the FBI again instructs us to be on the alert for a physical attack of one sort or another by terrorists, our equities markets could be continually under attack. You guys have heard me talk of this a number of times before with regard to "foreign naked shorts". But it is not beyond the realm of possibility that there exists a clan of sorts, whose sole responsibility it is to "take down" the U.S. economy.
Such a clan could contain key short-selling leaders throughout the world, each with their own "sub-clan". . . in espionage, they are called "cells". It would be the job of these figureheads to attract others to short-sell U.S. stocks. . .and with the growing track record of late, it is an easy sell. Let's face it. The money that is made in the Middle East from oil is mind-blowing. I imagine such a clan would issue regular information (by traditional means of media. . . writing or influencing articles, etc.) intended to put down American companies. . . and celebrations each time an American company falls or files BK.
We know that a large group of traders, whether organized or not, profited heavily on the fore-knowledge of September 11th attacks. . . short-selling and buying puts in UAL, AMR and re-insurers. . .primarily within the U.S. and Germany. I am again saying that I believe this group was not a one-hit-wonder, but has rather become an institution of sorts among its peers. . . gaining power over our markets over time as its equity grows exponentially.
I believe we are under attack presently and continue to be under attack. As I've illustrated here and elsewhere, sharp drops in the equities markets are historically reflected in a sympathetic drop in the economy. In other words, if you wish to attack our economy, then focus on the stock market.
Through unrestricted volume of foreign naked short-selling, I believe this is exactly what they are doing. One solution is to institute temporary (though I prefer them to be permanent) trading curbs: restricting all trading of U.S. equities from markets outside the U.S. be REQUIRED to provide proof of ownership of the underlying borrowed share of stock, before being allowed to borrow and short it. This solution is one that came from the GaBard Petition. I believe it would be a simple and effective means of deterring would be offenders. . . . and is in alignment with securities rules and regs within the U.S.
Again I have heard no mention of foreign short-seller activity or any other related equities abnormalities from the media of late, let alone the SEC, the FBI, the Secret Service or any other U.S. government agency. The media no longer speaks of the "profitiers of September 11th". . . as though they vanished. . . when we know that successful frequent short-covering and re-positioning results in significant growth of equity.
Example: Let's say one group started a year or 2 ago with the ability to short-sell 1 million shares of XYZ. By regular and frequent near-term trading, combined with sharp drops in the price of the stock as a result of the pressure they place on it. . . by now, this same group could have the ability to short-sell 20 million shares of the same stock. Multiply this by the number of groups out there duplicating this routine, then again by the amount of money they started with. . . and it is not unreasonable to imagine that the pressure on U.S. equities could be significant.
Our SEC is running around trying to point fingers at which corporate executive is at fault within the U.S. companies. . . instead of sitting back and looking at the big picture: that they too may be getting 'played'.
A well timed physical attack during such a vulnerable market, could land a devastating blow to the U.S. economy of unprecedented proportion.
Again, this is a warning to be aware that this game is for keeps. . . that we live in a new era. . .where things are not always as they seem. As such, we ALL need to be sharper and wiser. . . with a more skeptical eye. . . slower to trust . . . aware of where our economy is and how it directly affects our respective families. . . and resolved to see this conflict through, so that our children may have limitless possibilities and fearless dreams once again.
Best wishes all. . .
Rande Is |
