StockFetcher Forums · General Discussion · Same As It Ever Was<< >>Post Follow-up
12,036 posts
msg #74540
Ignore johnpaulca
5/18/2009 5:24:36 PM


The more things change, the more they stay the same. We've heard over the past several years dozens of stories related to fraud, neglect, and other criminal behavior as it relates to business on Wall Street. Sweeping reforms were promised after the tech bubble exposed the transparency of the "Chinese Wall" at traditional broker firms. Fines paid, promises made that such things would never occur again. A 'new' Wall Street, preaching fairness and a level playing field for all. Were we all that naive to believe such nonsense?

The 'New' Fraud

Insider trading has been around as long as one can remember. In the early 1900's there were tons of cases, which gave rise to regulation and authority and the creation of the SEC. It only really began to be noticed with the prosecution of Ivan Boesky and others in the 1980's. Scandals also go along with Wall Street just as peanut butter goes with jelly. Recently, we've seen the rise of Ponzi schemes brought about by scornful and merciless fund managers who clearly have no conscious. The ramifications of the Madoff and Stanford cases will be felt for years. But Friday, a newer more disturbing item was revealed: Attorneys for the SEC were indicted on insider trading violations, no details were released. Our lawmakers are fraudulent? Why does that not surprise me. It seems with some of the questionable rules in place by the SEC that this agency is probably worthless and useless. They should probably be investigating more insider trading, just like the next example.

Insider Information - 2009 Style

With the government pretty much in the picture these days, Wall Street has another element to deal with. It seems the rules change just when you think you got used to them. This is pretty much standard fare these days as the markets respond to new policies that are affecting the economy. With a blind eye, Washington can change the sentiment and behavior. But, the insiders are still getting the information and USING it. An example last week was the insurers. On Thursday evening, it was officially announced the insurers would participate in TARP fund access if needed. That's fine of course, except during that day an unusually large amount of options were traded, with the stocks rocketing higher. On Friday am, they mostly gapped up and a chunk of calls were dumped at much higher prices on the open. Clearly the news was leaked and used for purchases, but who knows if that'll ever be investigated. We could have seen the volume of course, but it's nearly impossible to catch up unless you're lucky. Level playing field? Hardly so. With all scandals and betrayals it's going to be tough to trust Wall Street if it ever was.

622 posts
msg #74550
Ignore luc1grunt
5/18/2009 9:35:11 PM

......."water flowing underground"

4,745 posts
msg #74551
Ignore Eman93
5/18/2009 9:52:19 PM

Thats why M4M follows the money

Thats why that kind of data is hard to catch
It would be nice if SF could scan options action in real time

The game is fixed we get the scraps

283 posts
msg #74572
Ignore heypa
5/19/2009 1:19:56 PM

The only reason the public was ever allowed to buy stocks was so that the insiders (wall street) would have someone to pay for the game. The same deal is apparent in politics(right to vote), When they created corporations they gave them all the rights of citizens except the right to vote knowing full well that given their ability to live as long as they were profitable they would gain sufficient money to buy what ever political influence they wanted thereby overriding the votes of the people. Ain't constitutional republics grand?

83 posts
msg #74578
Ignore conyeuchua
5/19/2009 6:34:41 PM

I am not sure if this news was mentioned elsewhere in this forum...

The Fox News video clip on this blog
alleged that there were 3 quick transactions very close to the end of trading days totalling $20 billions driving ^SPX up every time it was at risk of crashing

Fox people then wondered if it were coincidence that ^SPX was driven up at the same time as banks raise capital

12 posts
msg #74581
Ignore milansanremo
5/19/2009 9:33:54 PM

no worries....June 7 is end of government intervention....SHORT

854 posts
msg #74585
Ignore miketranz
5/19/2009 9:57:37 PM

Heypa,good point.The only reason the insiders are buying stocks,is to sell them to the public,in a game of hype,smoke & mirrors,greed & fear.That's what Wall Street is all about.That's the only reason Wall Street exists.The market is set up to take money away from the public.If you think anything otherwise,you will be in for a rude awakening.Lets put it like this,you're playing against a four ace hand,and your hand is open.Try this,walk outside your house,turn around & take a good look at it.Now take a look at the houses market makers like Merrill or Goldman live in.I rest my case..........

29 posts
msg #74589
Ignore BuylateSellearly
5/20/2009 12:43:50 AM

I'd rather let the insiders trade away and use the technical tools to spot their tracks. Otherwise you just get untradeable gaps.

StockFetcher Forums · General Discussion · Same As It Ever Was<< >>Post Follow-up

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