Financial Terrorism

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