As you know, by my blog journal, I feel that TPTB believe they have absolute control now. I urge us all to wake up now, not tomorrow, but now. They may be right in their hubris about having absolute control. It seems we are dead asleep and nothing can disturb our stupor.
In the past, TPTB pulled off some pretty bold stunts, but controlled those who would threaten to expose them very quietly so that we wouldn’t notice the damage control operations either while they were underway or even afterward. Some examples would be the fate of all of the true insiders and witnesses to both Kennedys’ assassinations. Anyone who really looked at the “magic bullet” theory or that Oswald acted alone knew how incredible that story line was, but what happened to all the players who were actually involved in the assassination plots or were witnesses were quietly and effectively terminated of a period of about 2 years.
The same is true of scientists or engineers that worked on economically staggering technologies such as 200 mph carburetors for cars or sometime called “Zero Point” energy. The whistleblowers in the space program, biological weapons programs, or shadow governmental organizations meet the same fate, but all was done discreetly, quietly, outside the MSM’s eyes. We were none the wiser as a whole.
But now the Monkeys (read politicians and banksters here) are strutting in right out on Front Street with no pretense about it. Let’s take this General Mauling (GM) deal. Yesterday, GM holds a news conference to inform the world they have already emerged from Chapter 11 bankruptcy. This has got to go in the Guinness book of world records. I guarantee if you or I had a small business in the same boat, and we had the greatest lawyers money could buy, and we had the bankruptcy judge in our back pocket, we could do the same deal in six months!. So let’s take a look at the New GM and see exactly what did happen.
1). They left behind in bankruptcy all their toxics assests, including previous retirement and medical benefit program obligations involving their employees.
2). They took $50 billion from us the taxpayers for a “Stimulation” package, only to announce yesterday that they are closing a total of 1600 dealerships in the US, closing 14 plants in the US, and are moving to China! I would estimate that is roughly 100,000 more people out of work in direct employment, and about 150,000 more people in their outsourced suppliers in the US. No foreplay, straight to the screwing!
3). They made an agreement with the good ole boys down in DC (Den of Crooks) that they may pay back the $50 Super Jumbo starting in 2015. They dumped Saab, Hummer, and Saturn completely.
4). Then they announced they are going to focus on international business and base that in Shanghai. So we have been Shanghai’d in the process.
But hey folks this is the new GM focused on you the customer. Are you pissed yet? No, OK let’s take a look at the Goldman Sachs situation. They were an indirect beneficiary of the Bail Out TARP monies. We learned this week that somebody stole a super secret trading program from them and if it fell into the “wrong hands” those who possessed could manipulate the markets. WTF? So it’s ok for Goldman to do that? Well as Paul Harvey use to say.. “here is the rest of the story!
This was in Daily Kos yesterday:
DKos Diary Reverberates Throughout Wall St. (w/update) by bobswern Digg this!
Sat Jul 11, 2009 at 12:10:52 AM PDT
A diary posted here on Tuesday by diarist vets74 (See: “‘Incredibly Shrinking Liquidity’ as Goldman Flushed Quant Trading “) has been the subject of much Wall Street-pundit commentary throughout the blogosphere over the past 48+ hours, starting with noted market observer Karl Denninger: “**FLASH** Goldman Code Theft BOMBSHELL? ” This tempest-in-a-teapot–some are seeking to downplay it and they’re calling it a “teacup”–is something I covered initially in a related diary a few days ago, in: “Breaking: FBI Arrest Opens Goldman-Sachs’ Pandora’s Box ,” and in a follow-up piece on Thursday, entitled: “The Outrage Against Goldman Sachs Builds …” * bobswern’s diary
The abbreviated version of the story, in a few sentences: A senior technology strategist and Vice President at Goldman-Sachs, Sergey Aleynikov, copied much of his firm’s “secret sauce”–an extensive set of proprietary, automated stock trading software code and algorithms–all related to “program trading.” Upon finding out about this, senior officials at Goldman-Sachs informed the FBI of all of this and had Aleynikov arrested at Newark Airport on July 3rd.
The code, as it has been noted by many, including Goldman-Sachs, allows the firm to execute securities/commodities transactions in microseconds, thus providing their company with an extreme edge over their competitors. The tacit fact is, with proper monitoring of market trades, in general and as facilitated by Goldman’s own practices, it’s entirely conceivable–albeit significantly questionable from a legal standpoint–that the firm would be enabled to “frontrun” its competition at quite a grand scale, too, since it could see trades occurring in real-time, and then execute its own trades automatically at lightning speed, before the previously-observed trades of others were even concluded.
All along, for the past nine-plus months–and in part due to government-related authorizations (by appointing Goldman-Sachs as the only active player in a new effort known as the “Supplemental Liquidity Program”) to enable Goldman to assist the Feds in propping up stock/commodities markets during the noted economic upheavals of same during this period–it has also been widely noted that Goldman had all but cornered the market, literally, in terms of the sheer volume of in-house trading the firm was engaged in during the time, supposedly, on its own behalf; to the point where it had been widely observed and documented that well over *half of all* program trading occuring on Wall Street (we’re talking 20%-30% plus of all stock/commodities trades in this country, for all intents and purposes), during many weeks over the past nine months, was being executed by Goldman-Sachs, too.
From Denninger on Wednesday… Wednesday, July 8. 2009 Posted by Karl Denninger ***FLASH** Goldman Code Theft BOMBSHELL?* Something really ugly popped up on Daily Kos yesterday late in the afternoon.
God help Goldman if this is true and the government goes after them. God help our capital markets if this is true and is ignored by our government and regulatory agencies, or generates nothing more than a “handslap…”
There apparently is reason to believe that Sergey might have been involved in exactly this sort of coding implementation. Specifically, look at the patent claims cited on DailyKos; his expertise was in fact in this general area of knowledge in the telecommunications world
This may be nothing more than a crazy conspiracy theory put out by someone at Daily Kos. But consider the following: The last few days the market has traded “organically.” I and many other market participants have noted that prior to the week before July 4th the market had been acting “very odd” – normal correlations between interest rate, foreign exchange the stock markets had been on “tilt” for the previous couple of months, with the amount of “tiltage” increasing dramatically in the last three or four weeks.
In fact, many of my usual indicators that I use for daytrading had become completely useless. Suddenly, just before the July 4the weekend, everything started correlating normally again. I have no explanation for this “light-switch” change but it aligned almost exactly with the day the NYSE had “computer problems” and extended trading by 15 minutes. Was there a configuration change made to their networking infrastructure, one asks?
I believe the SEC and FBI must direct a subpoena at all market exchanges for an under-oath answer…If the answer…is “yes” then every market participant who had or has equipment co-located on the NYSE infrastructure must be immediately served with a subpoena for a true and complete copy of all software operating on every machine connected to said infrastructure for immediate forensic investigation to ascertain if any participants were indeed “sniffing” traffic and front-running orders.
The charge made on the pages of Daily Kos is incredibly serious. If this happened it is a case of literal robbery of every market participant for the entire duration of the time that the code in question was executing on the network, with losses to market participants potentially running into the hundreds of billions of dollars (now do you understand where your 401K and IRA money went?).
Are you pissed yet? If you are not, then The Monkeys with the Brass Balls are right. Roll over and go back to sleep.