Posted on 08/21/2015 9:42:30 PM PDT by kathsua
Months ago I saw a rumor that some crooked billionaires had worked out a scheme to profit from a stock market crash. At the time I thought it must be just an urban legend. No one could be so stupid as to try to crash the stock market, particularly while the nation is at war. Now I’m not so sure it’s just an urban legend.
Ron Paul and other hucksters are advertising that we should follow their advice to avoid the economic debacle they claim is coming. Someone needs to tell these dopes that if they succeed in causing an economic panic they could face prison or worse.
(Excerpt) Read more at my.telegraph.co.uk ...
They did it in the 70s.
I pulled everything - EVERYTHING - out of the markets a year ago. All my money goes into my personal real estate, equipment, buildings and junk silver. All of it.
“The idea was for them to cause a drop in oil prices until the Fracking industry went bankrupt, causing liquidation of their assets.”
The costs of obtaining oil from fracking should also be dropping. The learning or experience curve suggests that costs will fall over time the longer a firm is in business
other things being equal. Firms that have been fracking for a few years learn the “tricks of the trade”: move employees where they are the most productive, the best places to drill and so forth and so on. Also, even if firms leave the industry and prices go back up new firms can
enter and begin fracking.
But when the price goes up again, the fracking becomes feasible again, and equipment bought in bankruptcy makes it even cheaper to produce.
I used to be a commercial real estate agent. I’d see a strip mall go up for a few million and get only one tenant. It would be sold in bankruptcy to someone for a much lower price, enabling them to rent it out for much less and still make a profit.
Poof! The strip mall is full.
Joe Kennedy shorted the stock market in October of 1929.
Got REALLY rich.
FDR wanted to clean up the insider trading in the stock market so he started the SEC.
He was known to have said (paraphrasing): ‘The only way to clean up this mess is to get a crook on our side. Get me Kennedy.’
It's not fine, it's sick.
I'll tell you what the issue is with the GOPe. It's taken living in NH alongside a dying GOP to see it.
The GOPe mission is to make sure we are ruled by the right people instead of the wrong people. The problem is, all the right people believe a lot of wrong stuff, because the people who TEACH and FORM the right people are disgusting traitors, perverts, and worse.
Of course, the red right people and the blue right people differ in several, mostly unimportant aesthetic details.
But the white American worker is at the bottom of both of their hierarchies, and that's what matters.
Wasn’t it Biden who caused the crash in 2008 by talking about Stearns, or Morgan, or something?
And that Senator Bennett somebody on the banking committee warning about bank failures the summer of ‘08.... http://www.politico.com/blogs/thecrypt/0908/Key_senator_warns_another_major_bank_teetering_on_failure.html
Idiot article.
Depending on how you were invested, there might have been some interesting tax consequences. It appears that having it in buildings, equipment, and more than likely paid for real estate is a good option in today’s world. You might call yourself ready.
Once, maybe.
I appreciate you very much for following the cause and sharing the story of this oil flop business. I love the stories of the oil business out of pure sentiment and all that it has done for our country, instrumental in winning WWII.
I know nothing about the causes of ebb and flow of the commodity itself. I had high hopes for the pipeline expansion and storage industry, and refineries. The damn Saudies. Thanks so much. Rita
"The U.S. economic crisis was precipitated in late June 2008 by Democrat Senator Chuck Schumer’s intentional leak of a memo questioning the solvency of IndyMac bank. The memo triggered a deposit run on IndyMac which led to its failure. The combination of IndyMac’s failure, Lehman Brothers collapse and Fannie Mae’s impending subprime mortgage crash effected a gathering storm in the markets until September 15th when, in a matter of hours, a colossal drawdown of money market accounts in the U.S. caused the disappearance of $550 billion from the American banking system. Rep. Paul Kanjorski of Pennsylvania stated if authorities had not closed the banks that day, $5.5 trillion would have been withdrawn from US banks, which would have caused the collapse of the U.S.
Combined with mortgage industry failures, this electronic run on banks handed the Democrats in Congress the justification to utilize the panic for political benefit and initiate the nationalization of the banking and mortgage industries under the $700 billion Troubled Asset Relief Program (TARP.) This early October Surprise propelled Barack Obama into office and provided further ammunition for his administration’s deliberate takeover of the private market."
How would you answer #18 above, here?
I have wondered the same thing.
Now Ron Paul is Ron Paul mind you, but honestly I doubt if he qualifies as "one of the billionaires plotting to crash the stock market".
Thank you! Even with my morning coffee I couldn’t rightly recall. The point though, is that dems are just as guilty as the next worried person on the street. Worry, warning, and wisdom are not treason. But what a great ploy to remove political opposition!
right which is why i said named nobody. figured i’d see an actual billionaire mentioned.
Okay. I see your point, sorry if I seemed argumentative.
nah its good. we came to the same conclusion.
Cry, conspiracies are immensely popular here at FR particularly if the story involves secret cabals manipulating the economy.
Conspiracies are way more interesting than, say, a correction after an abnormally long bull move in the market. Or maybe the business cycle turning down. Or China’s collapsing bubble in their stock market pulling ours down in tandem. No, such mundane explanations just will not do.
So go peddle your rationality elsewhere, Cry, we grew up on James Bond villains and we know they are out there controlling the world. Come back when you find one.
“What do you think happened in 2008?”
Exactly what a few of us here at FR had been warning was going to happen as early as 2005 when the housing bubble became obvious.
It was a matter of when, not if, that bubble was going to collapse. And the longer it ran the bigger that bubble got.
The main surprise to me was that the bubble didn’t blow up earlier.
” The drop in oil because of an oil glut, I don’t understand.”
Fracking itself has contributed to the oil glut. Natural gas is now much cheaper than it used to be thanks to fracking, and where NG can be substituted for oil it is reducing the demand for oil. This is the market at work.
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