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60 Minutes: the U.S. Stock Markets are Rigged

01 Apr

60 Minutes recently ran a story on the US stock markets entitled “Rigged” that was critical of integrity of US stock markets.  None of this is news.  But, when 60 Minutes makes a report on these subject, you can bet that  significant changes are imminent.   The 60 Minutes story may help cause a stock market decline for two reasons:

1) The stock markets are artificially rigged to support ever-higher prices. Although the current stock market is in one of the longest and strongest bull markets in history, US stock ownership is at a record low. There may be credible reasons to explain this anomaly, but generally speaking, if US stock ownership is at a record low, that should translate into reduced demand for stocks. If the demand is down, we should expect prices to to also be down.  Thus, stock market indices should be falling rather than testing record highs. This apparent violation of fundamental supply-and-demand principle leads me to suspect:  a) the market is artificially supported by some sort of rigging; b) without that rigging, the the stock market indices will fall; c) given that this rigging is being publicly exposed by 60 Minutes, it’s bound to be diminished or stopped; and d) the prices of stocks will suffer a serious decline.

2)  The stock market industry is unworthy of your trust.  Thanks to high speed computer trades, the stock markets are artificially rigged so as to rob investors of part of their profits.  Insofar as this problem is being reported on 60 Minutes, we can expect to see a serious of government and Congressional investigations that will not only amplify the current “can’t trust stock markets” message, but also uncover other instances of market rigging.  If people can’t trust the stock markets, they’ll be less likely to invest, U.S. stock ownership will decline further, and US stock market indices should fall further.

Implication:  The probability is growing that that we will see a significant stock market “correction” in the near future.   Those who invest in the stock market may want to reconsider that choice.

video    00:14:56

 
26 Comments

Posted by on April 1, 2014 in Fraud, Lies, Morality, stocks, Video

 

Tags: ,

26 responses to “60 Minutes: the U.S. Stock Markets are Rigged

  1. EarlatOregon

    April 1, 2014 at 12:47 PM

    N.Y. Stock Exchange bought by Germans

    http://usatoday30.usatoday.com/money/industries/brokerage/2011-02-15-nyse-deutsche-boerse_N.htm

    .
    .
    .
    It’s official:
    Germans buy NYSE in $10B deal

    http://www.crainsnewyork.com/article/20110215/FREE/110219927/its-official-germans-buy-nyse-in-10b-deal#
    .
    .
    .

    The Germans will own 60% of the new entity.

    Updated: February 15, 2011

    Pay no attention to that European shopper
    who just bought the world’s biggest stock exchange for about $10 billion.

    New York Stock Exchange officials did their best on Tuesday to persuade a skeptical public
    that their politically explosive decision to sell to Deutsche Börse …

    “You [the media] keep saying it’s an acquisition.”

    Earl says:

    So,
    the Germans now own the NYSE,
    (that way they can HIDE transactions from Americans and the american Government)

    the Europeans are trying to get the rest of the Stock they dont own,
    that is why the (European-owned) Media are Talking Down the US Stock Market.

    The US Stock Market is shares of OWNERSHIP,
    and the Europeans want to OWN all of the Most important companies,
    in the USA .
    (Europe’s main Economic and Political Adversary).
    .
    .
    .
    .
    .

     
    • hogorina1

      December 17, 2014 at 5:20 PM

      The Stock exchage consists of rogues, liers and thieves. All investors are criminal according to God’s law agaisnt usury. The best way to loot people is in the pawn-shop racket. The best racket in America is counting parking meter moneys. I personally know this loose change finds many paths before what’s left over winds up in some city treasury vault.

       
  2. Sam Kadasky

    April 1, 2014 at 1:53 PM

    If you’re sure the stock market is about to collapse, there’s a way to make a TON of money off your certainty: take a short position. This is how fortunes were made by insiders who knew what was coming before the crash of 1929.

    Wikipedia: “In finance, short selling (also known as shorting or going short) is the practice of selling securities or other financial instruments that are not currently owned, and subsequently repurchasing them (“covering”). In the event of an interim price decline, the short seller will profit, since the cost of (re)purchase will be less than the proceeds which were received upon the initial (short) sale.”

    What you’re basically doing is buying low and selling high, as usual, but in reverse order. You sell equities first (borrowing what you sell), then buy them back cheaper after the crash.

    Plus, you can use margin to amplify your winnings.

     
    • hogorina1

      December 17, 2014 at 5:21 PM

      As all religions are man-made, any progressive lier can fundle along as a prince of God, in duping innocent and honest people. Billy Graham and John Hagee were and are agents of Satan. Study both of these characters background and their instructions about God and readily recognise that Lucifer gives revelations too. I am not speaking ill against any followers, for i was duped over the years, and listened to bastardised fools milk the souls of unsuspected beings, pawning themselves off as God’s representitives. I would llike to reiterate, Billy Graham has done his part for Satan, and now is bedded-down with a conscious that Satan is well satisfied with. And now, this Hagee is a most dangerous minister within America, for he is in hock with professional revoliutionaries of oriental fundmenralism’s anti-Christ renegades. Christ was never a Jew, but Hagee was born into that cast via the mystery of birth.

       
  3. moon

    April 1, 2014 at 6:33 PM

    Al, in addition to your reasoning concerning markets, which is on track, the exchanges themselves are not to be trusted by a prudent trader or investor. The rules have not only changed, but aren’t even followed in some cases.

    About ten years ago, the Libor failed to hold certain traders responsible for their losing trades. That’s when I stopped trading through exchanges. The practice has spread worldwide. If an exchange shows partiality to some, the other traders’ odds are reduced to the vicinity of casino games.

    Then, when things start coming unglued, the complicated derivatives entanglements will begin to unravel…quickly.

    Some might think they have no liability because they don’t actively trade the markets. They’d most likely be mistaken. Most have 401Ks, 403Bs, or other so called”retirement” accounts. These accounts are managed by others unknown to the account holder and accessible only according to rules created by those other than account holders. Not only are current “employer” retirement accounts at risk, the accounts one has accumulated that are held through former “employers”.

    All these accounts are at risk with a triple whammy against them. First, the value of the stocks will be decreasing. Second, the values of stocks are figured in USD, and the USD will crash. Thirdly, the powers that SHOULDN’T be are in the process of confiscating “retirement” funds. So, what I’ve been encouraging is cashing out of ALL retirement funds, immediately if not sooner, regardless of ANY penalties, charges, etc. The reason being: fifty percent of something is better than one hundred percent of nothing.

    Then put all those funds first into water/food supply, then pay off all debt, then load up on silver…my particular preference. Some like gold, which is fine. Other metals are worthwhile as well, however, the important point is that it’s PHYSICAL metal AND that it’s IN ONE’S OWN POSSESSION. Please pardon my yelling…not my usual style. Al, I’ve spent many years encouraging this and very few have actually removed themselves from harm’s way. Those few, though, are worth it to me.

    As for shorting markets, not a good idea at all. I’ve traded commodity futures and have enjoyed fast and fun markets. Even shorting a stock, one incurs theoretically unlimited risk if the market goes the wrong way. One trader’s adage is: markets tend to be rationally in line with fundamental factors. Another trader’s adage: a market can remain irrational longer than a trader can remain solvent.

    Buy the best quality, take delivery, pay in full, keep your ducks within your control, then get ready for a rowdy ride.

    Maybe this will help.

     
    • Adask

      April 2, 2014 at 6:07 AM

      Thanks, moon, for an intelligent and insightful comment. Everyone should heed your warnings.

      Your comment on LIBOR and governments’ ten-year-long resistance against prosecuting those responsible struck a chord with me. By allowing the crooks to get away with LIBOR, the government simply encouraged more people in the markets to become amoral, immoral and out-right criminal.

      Thus, today’s market rigging and “retirement” account vulnerability have been, to some degree, caused by our earlier failure to prosecute the LIBOR crooks and send a message that corruption will not be tolerated.

      However, insofar as we now fail to prosecute those responsible for “rigging” our markets and those responsible for protecting our retirement accounts who’ve failed to do so, we can assume that the markets will attract even more white-collar, organized crime. As criminal conduct becomes even more prevalent in the markets, the entire economic and financial “system” will become even more corrupt until it finally collapses under the weight of its own criminality.

      We aren’t heading for an economic collapse in this country because of some technical detail (like interest rates, inflation rates, unemployment rates, etc.). We’re heading for an economic collapse because America’s government, financial institutions, and people have become immoral. If this nation is going to be destroyed, it won’t be by mathematics and economic formulae–it’ll be by immorality.

       
      • moon

        April 2, 2014 at 9:34 AM

        Therefore, one would do well having ducks in a huddle, not necessarily in a row, and be in control and possession of assets. It’s amazing to me how people trust banks and brokerages as if they’re immune from the fray.

         
  4. Toland

    April 1, 2014 at 6:57 PM

    Alfred Adask,

    Agreed, the stock markets are looking dicey, and have been since 2007.

    Sam K.,

    I guess you’re speaking from your experience in the econometrics field.

    Ideally, in shorting the market, I’d like to get CASH IN HAND now (to put into other investments) from the short sale, rather than leaving my funds with a broker.

    Are their ways of doing this?

     
  5. John Patterson

    April 1, 2014 at 9:03 PM

    The most significant Market rigging has been going on in precious metals forever. Silver is at a ridiculously low price when you consider the original ratio between gold and silver was 15:1 and today it’s 64:1 and yet if one looks at the amount of silver traded daily the numbers are not supported. Reason for the rigging in gold and silver – all the EFT the banks have leveraged. I am looking forward to the crash. Buy silver while you can still get it.

     
    • moon

      April 1, 2014 at 9:54 PM

      John Patterson, you are correct concerning long time rigging of paper metals markets such as ETFs and futures markets, but not physical metals markets. Physical silver is breaking away from paper markets. More and more of us won’t sell at paper market price levels. So, to the extent we’re holding physical silver out of the physical market, the market supplies are limited. That’s why physical silver is more difficult to get.

      Paper markets are fiction.

       
      • Toland

        April 2, 2014 at 2:17 AM

        moon > “Physical silver is breaking away from paper markets.”

        I’m wondering what this amounts to, in practical terms.

        The dealers I sometimes check still offer physical silver at the paper silver price (plus about the same premiums they’ve always charged).

        In what markets are buyers of physical silver experiencing this “breaking away” you mention?

         
      • moon

        April 2, 2014 at 10:04 AM

        Toland, I mentioned the break away in terms of the fact that some of us who have silver won’t sell at paper prices. When we, the holders, insist on higher prices if we sell and we control a deciding percentage of supply, price of physical will increase regardless of paper silver price.

        It’s true that you can still by at 20…spot, but you can’t buy mine at that. Have you noticed that dealers don’t have the supply they’ve had in years past? Silver is a very small market…one billionaire, theoretically, could take one of his billions and buy all the silver in existence. I say theoretically because he can’t buy mine at 20 and many others won’t let go at 20.

        In the late ’70s the Hunt brothers bought enough futures contracts (paper silver) to drive the paper price higher. The Comex changed trading rules and the Hunt’s buying ceased and their control of the market fell apart. That was paper silver…what if they had been buying and holding physical silver? The Comex has no control of my physical silver or yours. At some point one or many will absorb the remaining physical silver available and we’ll ride the price much higher.

        Keep in mind, though, that a one ounce silver eagle will still be one ounce of silver. It won’t be able to do or be used for any more than it can do or be used for at 20. It will simply reflect the weakness of USD and other fiat currencies.

        In the late 1920s, a Mercury dime would buy a loaf of bread. That same Mercury dime will still buy a loaf of bread…even a better quality loaf of bread.

         
  6. Sam Kadasky

    April 2, 2014 at 12:20 AM

    Toland,

    I was working with emerging economies, not Wall Street stuff.

    There are ways to spend the money from a short sale, e.g. putting up collateral, but this is not how it usually works.

    Still, if you’re sure the stock market will soon collapse, why leave cash on the table? Put your money where your mouth is, go short, and make a tidy sum like the pros.

    If the market collapse you’re sure is approaching will eventually result in the end of civilization and the switching off of everyone’s electricity, just pull your winnings out in the early days of the disaster. You’ll have time. The end of the world as we know it will take a few weeks to unfold, at least.

    The winnings you make by beating the market with your bear call will enable you to better deal with the subsequent lock-and-load Road Warrior phase.

     
  7. Peter

    April 2, 2014 at 9:53 AM

    The markets are reflecting prices that in essence are real. It’s like saying some have the ability to alter cycles, say like the sun and the moon. They may be manipulating the markets, but the cycles have the final say, you can’t change cycles.

    The Dow Jones Industrial Average is in my opinion putting in a huge topping pattern [14 years] , to those with a keen eye it is clearly evident. The pattern is known as a megaphone pattern or a broadening top, this pattern when complete will resolves itself sharply to the downside. Many have a keen eye and know what the pattern portends.

    In the workplace where most of my time is spent (retail grocery) there seems to be a panic underway, management is cutting help to the bone, almost in an act of desperation. It may be entirely possible that the castle dwellers at H.Q. know about the “MEGAPHONE” , and the bearish implications and the outcome.

    Moving averages are showing signs of weakness in common stocks and showing up and coming strength in the tangible sector, Al I heard you talking about moving averages [ golden cross] on gold and silver on DGS radio. The M/A is a useful tool. there is something called MACD, it stands for moving average convergence divergence if you ever get a chance type in MACD with a 25-170-25 on a weekly chart, this will show the true trend, despite the DJIA appearing as though it is rising the MACD is indication it is actually in a downtrend. Maybe you can consider incorporating this with the sound fundamental truths that you understand and cover it in your musings.

    Thanks for the space to leave a reply and maybe you can make sense of my writing.

    Today is the 14th of Abib, Passover 12 noon til 12 noon Thursday, have a good one .

     
    • J.M.

      April 2, 2014 at 6:10 PM

      Hi Peter, Remember me ??
      Luke 17:11-19 says,
      “Now on his way to Jerusalem, Jesus traveled along the border between Samaria and Galilee.
      As he was going into a village, ten men who had leprosy met him. They stood at a distance
      and called out in a loud voice, ‘Jesus, Master, have pity on us!’ When he saw them, he said,
      ‘Go, show yourselves to the priests.’ And as they went, they were cleansed.
      One of them, when he saw he was healed, came back, praising God in a loud voice.
      He threw himself at Jesus’ feet and thanked him – and he was a Samaritan. Jesus asked,
      ‘Were not all ten cleansed? Where are the other nine? Was no one found to return and give praise to God except this foreigner?’ – See
      2014 AllAboutJesusChrist.org,

      Keep in mind that these are only suggestions, but they reveal a whole lot about human nature:

      One man waited to see if the cure was real.
      One waited to see if it would last.
      One said he would see Jesus later.
      One decided that he had never really had leprosy.
      One said he would have gotten well anyway.
      One gave the glory to the priests.
      One said, “Oh, well, Jesus didn’t really do anything.”
      One said, “Any rabbi could have done it.”
      One said, “I was already much improved.”

      Written by Katherine J. Kehler

       
  8. Peter

    April 2, 2014 at 10:04 AM

    John Patterson, I agree with you, silver may be the most undervalued asset on earth. You just need to be patient and wait for the “thundering herd” to show up at the watering hole, they will come.

     
  9. Peter

    April 3, 2014 at 12:09 PM

    j.m. who is this katerine k. . Yahweh, His precepts , laws and judgements were sought on the Passover. His protection, direction and correction was asked for and the type of correction not being that which includes wrath and fury, but corrected by His love and mercy. And I thanked Him.

    Hi J.M. —————————————Peter

     
    • J.M.

      April 3, 2014 at 3:31 PM

      @ > I.m. who is this katerine k. . Yahweh, His precepts , laws and judgements were sought on the Passover. His protection, direction and correction was asked for and the type of correction not being that which includes wrath and fury, but corrected by His love and mercy. And I thanked Him.

      Hi J.M. —————————————Peter

      I have no idea what this/your message is saying or means, except ONE statement. Obviously , you, Peter did not know that I meant YOU were the “good Samaritan.” I thought maybe, from the time element delay in your responses, you may STILL be going to the library to respond. I don’t think you will understand this message either, no response is wanted.

       
      • J.M.

        April 3, 2014 at 3:41 PM

        Peter,
        P.S.
        @ >You, say Today is the 14th of Abib, Passover 12 noon til 12 noon Thursday, have a good one .

        I am understanding that you, Peter are saying that a day begins at noon, OR is it just this particular day, the Passover, begins at noon? What Calendar do you go by? You will probably understand this message from me, IF so, tell me whatcha think. Ohhh do you “observe” any of the Holy days, like the Feast days, where everyone gets together to have the happiest time of their lives? IF so, do they start at noon too?? Just curious.

         
    • J.M.

      April 3, 2014 at 5:59 PM

      @ > j.m. who is this katerine k.

      I am more interested in what Katherine SAYS than who she is, BUT I just type in, Katherine J. Kehler in the Google search Bar & it brings up a page you can select names, etc, from. I still do not know a lot or MOST computer terms / words, Other than that, what does the word, “other” mean, in your opinion? I would like to get 2 “other” opinions after your opinion, THEN, I can compare each other’s opinion & decide on which seems to be the BEST of the 2. It has to be one way or the other way, or maybe there many other ways to know what, other, means. I need to know one way or the other.

       
    • J.M.

      April 5, 2014 at 6:15 PM

      Peter,
      @ >Hi J.M. —————————————Peter

      I do not know what this means. Why the > ————————————- Peter < Why this? What are you trying to tell me,or say???

       
  10. Peter

    April 7, 2014 at 10:09 AM

    J.M. at noon the sun is at its highest point and sets from there. Passover began at sunset on the 14th day of Abib as I understand it.

     
    • J.M.

      April 10, 2014 at 5:13 PM

      .@ >J.M. at noon the sun is at its highest point and sets from there

      WOW !!! Thanks Peter, I didn’t know that.

       
  11. Stockbroker101

    July 25, 2014 at 3:31 AM

    We already felt that “riggedness” since 2007. Wouldn’t be surprise if the stock market comes worse.

     

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