STAFF NEWS & ANALYSIS
New York Post Expose: Stock Market Rigging Hits the Mainstream
By Staff News & Analysis - March 27, 2015

Stock market rigging is no longer a 'conspiracy theory' … The stock market is rigged. When I started making that claim years ago — and provided solid evidence — people scoffed. Some called it a conspiracy theory, tinfoil hats and that sort of stuff. Most people just ignored me. But that's not happening anymore. The dirty secret is out. – Justohn Crudele/New York Post

Dominant Social Theme: The good times are back. Just look at the stock market.

Free- Market Analysis: The stock market has moved down hard these past few days and perhaps there is more to come. The moves allowed the New York Post's John Crudele to readdress a favorite topic of his, which is market-rigging in the US and abroad.

His most recent article seems to have made a stir, puncturing a favorite elite market meme: The market is going up because the economy is recovering.

Crudele attributes markets' ebullience to direct interference of central banks and other interested and powerful parties. Here's more:

Ed Yardeni, a longtime Wall Street guru who isn't one of the clowns of the bunch, said flat out last week that the market was being propped up. "These markets are all rigged, and I don't say that critically. I just say that factually," he asserted on CNBC.

Yardeni's claim is the most basic one: that the Federal Reserve won't do anything that will upset Wall Street and, in fact, is doing all it can to help the stock market.

But there are other recent claims that come closer to the bull's-eye, even if the archers don't quite see what they are hitting. The Wall Street Journal carried an intriguing story on March 11 about how the Bank of Japan was "aggressively purchasing stock funds." (The Journal is owned by News Corp., the parent of The Post.)

"By directly underpinning the market, [Bank of Japan] officials have tried to encourage private investors to follow suit and put more money in stocks in the hope of stimulating the economy and increasing inflation," read the report with a Tokyo dateline.

The reasons given for the Bank of Japan's interference, as we can see, are altruistic in some sense. Forcing averages up is going to give the average Japanese investor a sense of excitement that may encourage him or her to invest as well. The economy will improve. Prosperity will expand.

Crudele uses the Japanese market rigging to generate other speculations on how market manipulation works in the biggest sense. It's his theory that the Bank of Japan and perhaps other central banks around the world are dipping into US stock markets.

The idea is that the Fed might be reluctant to take such actions for fear of discovery, but that other collegial parties might be involved.

Perhaps this sounds far-fetched, but more than a year ago, Crudele points out, it became known that the Chicago exchange that trades options and commodities had created an incentive program encouraging foreign banks, including central banks, to buy discounted equity derivatives contracts.

Such contracts (think S&P futures) are an easy way to move markets up and down – usually up. Crudele counsels that market losses these days are usually followed by S&P futures buying. "It almost always occurs," he writes.

US stock markets are not immune to direct manipulation, however. Crudele claims that during 2008 when the entire economy was unraveling at a rapid clip, phone logs he received show regular contact between then Treasury Secretary Hank Paulson and Wall Street banks such as Goldman Sachs. The phone calls and stock market rallies seem to have a relationship, he indicates.

Crudele points out that companies may be able to force equities higher when they embark on stock buybacks that take shares out of the market. However, there are other kinds of possible manipulations that Crudele doesn't get into. Computerized trading is one of them.

But the biggest manipulation of all is simply the endless stimulation that central banks have embarked upon.

Japan, the EU, the US and China are all rapidly printing money despite various denials and equivocations. Is this coincidence or a globally coordinated buying effort that may be orchestrated by top bankers and the Bank for International Settlements itself?

Our point for well over a year now is that this latest Wall Street Party has been orchestrated via money printing and regulatory adjustments that have had the effect of forcing averages up.

We've been consistent, pointing out that these manipulations provided investors with a significant window of opportunity, provided they were properly hedged and practiced appropriate asset allocation.

Is the current market downturn the end of this manipulative effort – if that is what it is? Such time related speculations are difficult to predict, indeed. But even a deep retrenchment would not necessarily end this faux bull market.

After Thoughts

However, when the market finally does move down definitively, we have a feeling it will be a resounding crash. In the meantime, profits have been gathered – and maybe, just maybe, there are more to come.

Posted in STAFF NEWS & ANALYSIS
  • “In the meantime, profits have been gathered – and maybe, just maybe, there are more to come.” Of course, there are always profits available for those who are on the right side of the market, but those profits are nothing but numbers on your broker’s statement until the position is closed out and the profit is safely in the bank. Profits can disappear more quickly than smoke in a high wind………

    • Bruce C

      “safely in the bank” ?? Even that may not be enough. I prefer cash in a Safe Deposit Box or out of the banking system altogether, if not a portion converted to PMs.

      • Bruce, both you and Fenwick are 100% correct

    • fenwick’s in the manger

      “safely in the bank”. Excellent joke construction, good lead in and, phenomenal punch line… “safely in the bank”.

      I agree with you though and, I always like reading your comments but… “safely in the bank” just cracked me up! It is all unraveling this September.

      • Yes Fenwick in the Manger! It is a measure of just how far down the rabbit hole we are, that you (and I) laugh uproariously at the old catch-phrase “safely in the bank”. What an upside down world we live in. Thanks for the kind words.

    • kenvandoren

      All of which is evidence that for the unsophisticated investor, especially now, stock market “investments” are not as secure, not as safe as most would like. So, do you bank your cash, and let inflation more or less slowly eat away at it, or do you invest in the market and risk losing most if not all your wealth overnight? It is not at all clear to me that there are any save investments left out there.

      • WinChll

        You lose either way with a “debt” based money.

        • Earn nest

          Many well Fed economists truly believe it doesn’t matter; which of course it doesn’t right up until suddenly it does.

      • When sovereign debt is paying 0% on notes of guaranteed confiscation that can never, ever be repaid then yes, Ken, there ARE no safe investments any more and that is by design I am afraid! As you so accurately point out, the choices offered to us as investors are not choices at all, it is “heads I win, tails you lose”. I believe in hard assets.

      • In UK buy-to-let is going well. Farm land is a good investment and of course gold in bullion form in your own hands, buried in the back garden perhaps – silver too is well under priced. Back to the 17th century!

  • Bruce C

    To say that the markets are being manipulated by central planners is almost a tautology. I think it’s safe to assume they will do anything and everything they can to create whatever effect they want – in this case higher borrowing and spending. Unfortunately, I can’t find an article I read at Fidelity’s website that explained how involved in the open markets the Fed plans to be to begin raising interest rates. They’re brainstorming with banks and all kinds of institutions to plan it. But then at the end the Fed admits that they may have to do more or different things once it starts.

  • PatrickHenry1789

    I don’t even consider publications like the NY Compost to be mainstream anymore. They’re more like fringe and publications like The Daily Bell are more mainstream IMHO.

  • WinChll

    “The market is going up because the economy is recovering. – “
    No, it’s merely their excuse for fraudulent behaviour.

  • Tom kauser

    Paulson? Do you mean Pat Paulson!
    Do you reckon that Paulson was Treasury sec. And senior adviser to Goldman at about the same time?
    How about some real tidbits BUD FOX? Like WHO THE heck PULLED THE PLUG ON LEHMAN?
    Why did seven million loss their jobs when Paulson took out FULD or is seven million another fantasy number like 18 trillion?

  • Guy Christopher

    J, Crudele says he’s been reporting for years the stock market is rigged. “These markets are all rigged…” he says. Hats off to Mr. Crudele, and A+ for effort, but stock market rigging is no flash bulletin. Sounds to me like he’s the guy to talk to Chris Powell and Bill Murphy at GATA. Maybe Mr. Crudele could spend a few hours thumbing through GATA’s research, ask a few central bankers some questions about gold market rigging, write the story for the Post’s front page that all central bankers live in abject fear of gold priced at market like no other fear they have ever endured, and then win himself the Pullet Surprise. I’d like to see him write about the most important market in the world. We already have the cheerleaders at CNBC proving everyday stocks are rigged.

    • Here, here well said. We all know the gold rigging game and how it’s done but the captured MSM are only just now having to face the facts head on – more to come I hope.

  • Earn nest

    We know about Belgium treasuries. Why wouldn’ this be the case. Of course it is.

  • typodrive

    How is this insider information obtained and disseminated to those who profit? How about NSA spying, Gordon Gecko’s wet dream?

  • I have been trading and observing the financial markets – including commodities – for over forty years. In the good old days, when you could receive a rate of interest return that was slightly greater than inflation, trading T-Bills was like watching grass grow – no – like watching the rock of Gibraltar erode…… now T-Bills – US Government debt – are trading like Pork Bellies. Wild swings on an almost daily basis both up and down. As for the markets being rigged – we only see the very tip of the iceberg, it is so much worse than any of us can imagine. The One Bank has absolute control of the issue of currency, absolute control of every market, absolute control of the US Military, absolute control of mainstream media, I could go on but I am sure you see the point. One day historians will look back on this period in financial “progress” and shake their heads at the schemes, the delusions, the lies, and the utter madness of crowds.

    • So true, I also have traded markets for many years but have stayed away on this run after 2008. Yep I missed the great run up like it was 1995 but I am confident in being safe and having just enough to be a happy, retired teddy. Perhaps this quote reinforces the propositions:

      “Conspiracy theorists of the world,believers in the hidden hands of the Rothschilds and the Masons and theIlluminati, we skeptics owe you an apology. You were right. The players may be a little different, but your basic premise is correct: The world is a rigged
      game”. – Matt Taibbi

  • bailintheboat

    Japan’s QE includes buying foreign stock markets and bonds. I was thinking this morning. I work, save, invest when possible, to buy these markets. They print out a load of cash to buy the markets.
    Any alarm bells go off there?

  • JosephConrad

    Every market is manipulated, looted, ‘fixed’ and regularly robbed by the Big Wall Street banks. Thugs that never die just KILL OTHERS.

  • Praetor

    There are no conspiracy theories, well maybe lizard people, still can’t rap my head around that one. Their not propping up the stock market, their buying up the stock market, gaining ownership (assets and earnings) and everything else that goes along with ownership. We, all know how this works, (stocks). The Centrals will own everything, and those owning the Centrals, will own EVERYTHING, we are seeing the consolidation of power, though it be Fiat, in todays world, being able to print money = power, now who are the sovereigns. They in their own minds will own everything, they in their own minds, owning everything, will have the final say in how those assets and earnings are used. So, if you have a stock market retirement account and the crash comes, and you go screaming, I have shares, you figure that one out, just remember who owns it. Hard Assets, paper being soft and flexible. Use to be, Pump and Dump (stocks), now, Pump and Dump (people).

  • “What can be added to the happiness of a man who is in health, out of debt, and has a clear conscience?”
    – Adam Smith – Economist

  • hvaiallverden

    Pardon for the laguage, but where the f….. is the conspiracy, what stunns me, is that this isnt more known.
    Apart fro Roling S, its been silent, I have seen some writings but they are simply evaporated this days, where science is setled and economy is ok.
    huh

    Inflation, is theft, a swindle alwed to exist, camuflaged as a marked tool, but is nothing more than rising prices, thats it, rising prices to boost revenues, and when markeds collaps, by simple lack of means, they slaughter their own corps to further boost their revenues, and when there isnt anything left to cutt, then what.
    They camuflage inflation in issues as water injections of meat (20-30%), to bigger bags, with lesser in it.
    And so on.
    Deflation is the same, just opositt driven.

    I have no idea of what scoundrells managed to convinse the gov. and the “experts” of the biblical scale stupidity of bying stocks to boost the eCONomy, how the f….. is that possible, tell me.
    I dont bother to read charts anymore, charts are statistical camuflaged lies, easy to fake and easy to make, and all we can do is to take this as “serious” as we can.
    If I watch anything, its my own nabourhood, if its there, then you know its everywhere.

    Hrmmm, I am noot impressed, but thanks to those that finaly realises the ugly truth.

    peace

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