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Saturday, October 11, 2008

ThoughtsOnEconomicWarfareConspiracy




conspiracy theory 101...the smoke screen
is it possible that Al Qaeda actually waged war against the United States by a means that really hits home? did in fact , Al Qaeda hit beneath the radar and not attacked democracy , not attacked the republic upon which we stand but attacked capitalism upon which we strive? was 9/11 actually the smokescreen that covered up a pre-emptive strike that occurred days before? could what's happening today on wall street have begun days prior to the attacks on the World Trade Center? was Wall Street in fact hit with a money virus that shrewdly through means known only to the WallStreetSavvy, could have "incubated" to the point where capitalism is about to crumble...maybe its not the democracy that's being attacked but the very capitalism that does stretch a bit deeper across the globe that's beginning to unravel. what more clever way to kill than to feed until you burst. to inflate then deflate if you will the very fiber that means more materialistically , then anything so conceptually detached as democracy , altruistically speaking. hit ‘em where it hurts...in the pockets. to hell with virtueism. money talks bullshit walks. make it look like planes slamming against buildings...like in the movie DieHard, send them all to the roof , blow the building , its the bearer bonds in the vault we want...“you silly Americans yes well this time John Wayne doesn't ride off into the sunset with Grace Kelly.” or maybe DieHard3 where we'll set off explosions , threaten to blow up schools , have all the police on a wild goose chase , meanwhile we're robbing the federal reserve bank of its gold. it is quite possible that this war is an Economic War. bloodless but twice as deadly. more global. more destabilizing. far more cunning. and quite biblical. Al Qaeda is , maybe , mastering the art of hanging paper.

Major al-Qaeda operations have historically occurred between August and December,
Targets
- Financial institutions or targets against which a successful attack would have a
perceived financial impact
...from IntelCenter Analytical Reports http://www.intelcenter.com/OilAllies-v1-0.pdf

the following is taken [and re-edited] from

The silence from the investigating camps could mean several things: Either terrorists are responsible for the puts on the listed stocks or others besides terrorists had foreknowledge of the attack and used this knowledge to reap a nice financial harvest from the tragedy.

Shortly after the attack the SEC circulated a list of stocks to securities firms around the world seeking information. [
16 ] A widely circulated article states that the stocks flagged by the SEC included those of the following corporations: American Airlines, United Airlines, Continental Airlines, Northwest Airlines, Southwest Airlines, US Airways airlines, Martin, Boeing, Lockheed Martin Corp., AIG, American Express Corp, American International Group, AMR Corporation, AXA SA, Bank of America Corp, Bank of New York Corp, Bank One Corp, Cigna Group, CNA Financial, Carnival Corp, Chubb Group, John Hancock Financial Services, Hercules Inc., L-3 Communications Holdings, Inc., LTV Corporation, Marsh & McLennan Cos. Inc., MetLife, Progressive Corp., General Motors, Raytheon, W.R. Grace, Royal Caribbean Cruises, Ltd., Lone Star Technologies, American Express, the Citigroup Inc., Royal & Sun Alliance, Lehman Brothers Holdings, Inc., Vornado Reality Trust, Morgan Stanley, Dean Witter & Co., XL Capital Ltd., and Bear Stearns.

A jump in UAL (United Airlines) put options 90 times (not 90 percent) above normal between September 6 and September 10, and 285 times higher than average on the Thursday before the attack. -- CBS News, September 26 A jump in American Airlines put options 60 times (not 60 percent) above normal on the day before the attacks. -- CBS News, September 26 No similar trading occurred on any other airlines -- Bloomberg Business Report, the Institute for Counterterrorism (ICT), Herzliyya, Israel [citing data from the CBOE] 3 Morgan Stanley saw, between September 7 and September 10, an increase of 27 times (not 27 percent) in the purchase of put options on its shares. 4 Merrill-Lynch saw a jump of more than 12 times the normal level of put options in the four trading days before the attacks .

Morgan Stanley Dean Witter & Co. and Merrill Lynch & Co. were both headquartered in lower Manhattan at the time of the attack. Morgan Stanley occupied 22 floors of the
North Tower and Merrill Lynch had headquarters near the Twin Towers. Morgan Stanley, which saw an average of 27 put options on its stock bought per day before September 6, saw 2,157 put options bought in the three trading days before the attack. Merrill Lynch, which saw an average of 252 put options on its stock bought per day before September 5, saw 12,215 put options bought in the four trading days before the attack. Morgan Stanley's stock dropped 13% and Merrill Lynch's stock dropped 11.5% when the market reopened. [11 ]
Bank of America showed a fivefold increase in put option trading on the Thursday and Friday before the attack.
The Wall Street Journal reported on October 2 that the ongoing investigation by the SEC into suspicious stock trades had been joined by a Secret Service probe into an unusually high volume of five-year US Treasury note purchases prior to the attacks. The Treasury note transactions included a single $5 billion trade. As the Journal explained: "Five-year Treasury notes are among the best investments in the event of a world crisis, especially one that hits the US. The notes are prized for their safety and their backing by the US government, and usually rally when investors flee riskier investments, such as stocks." The value of these notes, the Journal pointed out, has risen sharply since the events of September 11.
Put and call options are contracts that allow their holders to sell and buy assets, respectively, at specified prices by a certain date. Put options allow their holders to profit from declines in stock values because they allow stocks to be bought at market price and sold for the higher option price. The ratio of the volume of put option contracts to call option contracts is called the put/call ratio. The ratio is usually less than one, with a value of around 0.8 considered normal.
In each case, the anomalous purchases translated into large profits as soon as the stock market opened a week after the attack: put options were used on stocks that would be hurt by the attack, and call options were used on stocks that would benefit
.

Either terrorists are responsible for the puts on the listed stocks or others besides terrorists had foreknowledge of the attack and used this knowledge to reap a nice financial harvest from the tragedy.

Lynne Howard, a spokeswoman for the Chicago Board Options Exchange (CBOE), stated that information about who made the trades was available immediately. "We would have been aware of any unusual activity right away. It would have been triggered by any unusual volume. There is an automated system called 'blue sheeting,' or the CBOE Market Surveillance System, that everyone in the business knows about. It provides information on the trades - the name and even the Social Security number on an account - and these surveillance systems are set up specifically to look into insider trading. The system would look at the volume, and then a real person would take over and review it, going back in time and looking at other unusual activity."
Howard continued, "The system is so smart that even if there is a news event that triggers a market event it can go back in time, and even the parameters can be changed depending on what is being looked at. It's a very clever system and it is instantaneous. Even with the system, though, we have very experienced and savvy staff in our market-regulations area who are always looking for things that might be unusual. They're trained to put the pieces of the puzzle together. Even if it's offshore, it might take a little longer, but all offshore accounts have to go through U.S. member firms - members of the CBOE - and it is easily and quickly identifiable who made the trades. The member firm who made the trades has to have identifiable information about the client under the 'Know Your Customer' regulations (and we share all information with the Securities and Exchange Commission.)"
Given all of this, at a minimum the CBOE and government regulators who are conducting the secret investigations have known for some time who made the options puts on a total of 38 stocks that might reasonably be anticipated to have a sharp drop in value because of an attack similar to the 9/11 episode.

Either terrorists are responsible for the puts on the listed stocks or others besides terrorists had foreknowledge of the attack and used this knowledge to reap a nice financial harvest from the tragedy.

the following is taken from NewYorkPost article dated 10 October 2008:
As the Dow plummeted nearly 700 points yesterday to fall well below the 9,000 mark, the Iraqi stock exchange was flourishing.
Last month, Iraq's general index went up nearly 40 percent, about the same percentage the Dow dropped over the past year. The United States has poured more than $600 billion into the war-torn nation, and some experts believe the total cost could be in the $2 trillion range. "The American system is all on credit. Here, take a loan, here, take a loan," investor Adel al-Jawahiri said.
"You can't have a totally free market. You have to have rules. From what I understand of why the credit crisis happened, I can only describe their administration as stupid
."

now take into account all that's happened on Wall Street recently and across the globe and ponder is this or isn't this an Economic War! ....hmmm Tom Clancy couldn't have written a better scenario.



hmmm....


2 b continued

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