Posted on 03/20/2008 5:28:27 AM PDT by Perdogg
Stock market manipulators yesterday tried to bring down one of Britain’s biggest banks by spreading false rumours through the City.
The Bank of England was forced to issue an unprecedented denial that HBOS was in trouble.
The Financial Services Authority (FSA) said that it would pursue traders guilty of “market abuse” by spreading untrue claims that banks were on the brink of collapse.
(Excerpt) Read more at business.timesonline.co.uk ...
Soros.
excatamundo!
That’s probably how they got Bear Sterns.
Someone bought a bunch of put options that expire in March (today actually).
They then started rumors that Bear Stearns was in trouble. Bear’s stock starts to decline.
Bear’s CEO comes out and says all is fine and S&P says the credit crisis is coming to an end. The market is poised to rise big time which would have decimated the put buyers.
So the put buyers go into emergency mode and flood every channel with negative Bear Stern news.
It’s enough to make people question Bear Sterns and start to pull back from them “just in case”.
So the rumor then becomes a self-fullfilling prophesy.
Bear Sterns tanks, the put buying market manipulators score a big gain and JP Morgan gets Bear Sterns for pennies on the dollars.
It’s a shame there aren’t any regulators stepping in to stop this mess, but remember, the number one pit bull, Spitzer has been neutered.
Turn loose the dogs of war.
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