Financial Crisis: 18 Aug 2011 : Financial Terrorism
Andre Willers
18 Aug 2011
Synopsis :
Financial terrorists are suborning techniques of Financial Raiders to destabilize world markets .
Discussion :
Financial Raiders :
They used short-selling and rumour spreading to manipulate prices on Aug 3 and Aug 4 , 2011 . They like to artificially depress the markets during the middle of the week , allowing for a rebound during Friday to offload their exposure over the weekend .
They try to ride and drive the markets down , making money by using the freedom of the markets .
Financial Terrorists :
Events on Thu , Aug 18 , 2011 are different . Financial Raiders attempting the same trick have been hijacked by Financial Terrorists , aborting the recovery and pushing the downswing .
Counter-measures :
Democracies have strong measures against Terrorism , Financial or otherwise .
Market Freedom does not mean the freedom to shout "FIRE!" and rob those fleeing at the exits .
Riot Spillover :
There already has been riot spillover in the UK . It is starting in India . USA is next .
Then China and Russia .
This must be seen as a concerted attack , not a market correction .
The market mechanisms allowing this has been partially shut (ie limited ban on short-selling) , but much more is needed . The whole Hedge-fund and futures markets have become fellow-travellers of the Financial Terrorists .
Tragedy of the Commons Perception :
The Terrorists have created a perception via the media that cooperation is dead and it is every man for himself . Make money out of the decaying carcass .
This would have been true if not for the Social Media .
Note the Sweeping-up spontaneous organizations in the UK , Egypt , Libya , etc .
Cooperation is rallying faster than destruction .
Leaders should hurry to get in front of the people they are leading .
Andre
No comments:
Post a Comment