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June 12, 2012 – Comments (1)

“Mirror, mirror on the wall; who’s the most rigged of them all?” The mirror in this fairy tale of “free markets” responds “Boxing. No wait, I’m changing my answer: global equity markets.”

Monday’s market action was a mirror image of Friday’s – the same but backward. As you know by now, Friday levitated much higher on no volume but somehow, magically, exploded even higher in the final minutes. Hopium was in the air. The market expected a bailout of Spain and went crazy into the close.

Stop and think about that. Would you put billions of dollars at risk in the closing minutes of a Friday with an impending bailout – or no bailout – of a major country on the line? You wouldn’t and neither would Fraud Street, unless it knew the outcome…unless it was rigged.

Once Fraud Street asked the mirror what the Spain bailout outcome would be and those “special banksters” got their answer – “It’s a done deal” – they drove the market much higher.

This morning, however, there was no add-on buying frenzy. Fraud Street got nervous. In its best imitation of Gordon Gekko who said “Sell it all. What the hell, so we only make ten million,” the banksters today sold Friday’s ramp-job and surely pocketed 10-times Gekko’s quote. After all, they happened to buy at just the right time – like ol’ Gordon happened to often do himself.

In addition to the simple lack of add-on and all-out buying this morning, we read the following during the trade day from Reuters:

European finance officials have discussed as a worst-case scenario limiting the size of withdrawals from ATM machines, imposing border checks and introducing capital controls in at least Greece should Athens decide to leave the euro.

EU officials have told Reuters the ideas are part of a range of contingency plans. They emphasized that the discussions were merely about being prepared for any eventuality rather than planning for something they expect to happen - no one Reuters has spoken to expects Greece to leave the single currency area.

Belgium's finance minister, Steve Vanackere, said at the end of May that it was a basic function of each euro zone member state to be prepared for problems. These discussions appear to be in that vein.

But with increased political uncertainty in Greece following the inconclusive election on May 6 and ahead of a second election on June 17, there is now an increased need to have contingencies in place, the EU sources said.

The discussions have taken place in conference calls over the past six weeks, as concerns have grown that a radical-left coalition, SYRIZA, may win the second election, increasing the risk that Greece could renege on its EU/IMF bailout and therefore move closer to abandoning the currency.

No decisions have been taken on the calls, but members of the Eurogroup Working Group, which consists of euro zone deputy finance ministers and heads of treasury departments, have discussed the options in some detail, the sources said.

As well as limiting cash withdrawals and imposing capital controls, they have discussed the possibility of suspending the Schengen agreement, which allows for visa-free travel among 26 countries, including most of the European Union.

It must take phrases like “worst case scenario” or “impending doom” to bring a reality check. Could it be that finally there’s not enough hopium left in the pipe?

Then again, Backstop-Ben will soon be looking into the mirror without asking a question. Rather, he’ll point to his reflection and say “Now it’s all up to you big guy.”

Trade well and follow the trend, not the so-called “experts.”

Larry Levin
President & Founder - TradingAdvantage

1 Comments – Post Your Own

#1) On June 13, 2012 at 1:44 AM, L0RDZ (88.00) wrote:

The  irony  is that  casino's  have  and  are better regulated  than the  so called markets  that allow  front  running ~  legalized  insider  trading among  law-makers ~  super-sonic  warp-speed  trading  ~  and  the absurdity  of  the nasdac  to only  confirm after the fact whether or not  retail trades  were or were  not  done  ~  confirmed  ~  basically  allowing the stuffing  of  retail  investors  by  insiders  and  institutions.

Sadly  our  Law-makers were more outraged by gold-man saks  supposedly  sticking another  institutional buyer ~  this time  a foreign german  bank  who needs  no protection ~  and should have  had  the where-with-all  to handle  themselves  than  they were about  retail  investors  who are getting  screwed,  stuffed,  and  grounded  into the dirt.

Why  is  John Corzine  not in jail !!!

Why are they having a three ring circus  with  JPM  ~  yet they  have given  a pass  to  Freddie  and  FAnnie  and Geny ?

When  will  the little  guys  be  able  to safely  invest what little money they have managed to hold onto  and earn more than a negative return  on  10 year bonds ???

WHy are they trying to re-inflate  the  broken  bubbles ?

Oh yeah  thats  right  them rats...   demi-rats...   pushed home  mortgages  onto  persons  who  should have never  bought into  the bubble  that  real estate  would  only  rise and rise and  here is  your big brother here to give you money to give  to others  to  over-pay  on  over-valued  property  and hey while you're at it  why not borrow  some extra  money and  build some extra  bath-rooms  and buy yourself  another car.

If you're looking  for  another rigged game.... heck just look to the government..

Ask  those being  persecuted by  the Russian  DICKTATOR  Putin how  rigged  the election game is...

He who does the counting  ~  those puppet-masters who are pulling  on  Nobama's  strings  and  giving  people the  illusion that  their  vote somehow counts ~  when  only  true change  comes  by not being  weak  and being able to force your will upon others.


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