A Secretive Banking Elite Rules Trading in Derivatives

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hucklejohn's picture
hucklejohn
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A Secretive Banking Elite Rules Trading in Derivatives

I consider myself "well read" in financial matters."  I guess I missed this.

http://www.nytimes.com/2010/12/12/business/12advantage.html?_r=1&src=busln

A Secretive Banking Elite Rules Trading in Derivatives

Excerpt:

"On the third Wednesday of every month, the nine members of an elite Wall Street society gather in Midtown Manhattan.

"The men share a common goal: to protect the interests of big banks in the vast market for derivatives, one of the most profitable — and controversial — fields in finance. They also share a common secret: The details of their meetings, even their identities, have been strictly confidential.

"Drawn from giants like JPMorgan Chase, Goldman Sachs and Morgan Stanley, the bankers form a powerful committee that helps oversee trading in derivatives, instruments which, like insurance, are used to hedge risk.

In theory, this group exists to safeguard the integrity of the multitrillion-dollar market. In practice, it also defends the dominance of the big banks.

"The banks in this group, which is affiliated with a new derivatives clearinghouse, have fought to block other banks from entering the market, and they are also trying to thwart efforts to make full information on prices and fees freely available.

"Banks’ influence over this market, and over clearinghouses like the one this select group advises, has costly implications for businesses large and small, like Dan Singer’s home heating-oil company in Westchester County, north of New York City.

"This fall, many of Mr. Singer’s customers purchased fixed-rate plans to lock in winter heating oil at around $3 a gallon. While that price was above the prevailing $2.80 a gallon then, the contracts will protect homeowners if bitterly cold weather pushes the price higher.

"But Mr. Singer wonders if his company, Robison Oil, should be getting a better deal. He uses derivatives like swaps and options to create his fixed plans. But he has no idea how much lower his prices — and his customers’ prices — could be, he says, because banks don’t disclose fees associated with the derivatives.

"“At the end of the day, I don’t know if I got a fair price, or what they’re charging me,” Mr. Singer said."

Jim Sinclair says:  "What has become of Western Financial Society that it needs to be run by secret cabals?
What has become of the people that this can be discussed in the light of day and nobody really cares."

http://jsmineset.com/category/in-the-news/

Saffron's picture
Saffron
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Re: A Secretive Banking Elite Rules Trading in Derivatives
hucklejohn wrote:

Jim Sinclair says:  "What has become of Western Financial Society that it needs to be run by secret cabals?

What has become of the people that this can be discussed in the light of day and nobody really cares."

If it's in the light of day then it must be ok because if it isn't somebody else will deal with it, and if it's not in the light of day it can't be true and is called a conspiracy theory.

This has driven me bonkers for so many years ... the way people always just shrug their shoulders when some atrocity (political or economical) is pointed out.  

I guess this is the result of, as John Taylor Gatto says, "Dumbing Us Down:" 

a) we don't even understand what is being done so we don't pay attention 

b) we're told that's the way it is and since we are used to *authority* telling us how to think, we don't question

c) we don't think there's anything we can do about it, so we don't try

d) we don't think it affects us personally, so frankly we just don't care

I was going to add that (d) is the saddest, but now I'm not so sure

~ saffron, 

who thinks the worse part about the coming crash is how many people are marching toward it so willingly

 

David.a.Isaksson's picture
David.a.Isaksson
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Re: A Secretive Banking Elite Rules Trading in Derivatives

Sadly, you are quite right Saffron.

For years I have tried different tactics for getting people aware and engaged in the matters the 3E's. I generally start in a very subtle matter not to scare people away but the end result is almost always the same. People are more interested in the latest sports news or even more trivial matters such as who is leading the latest reality show or some such. Even though the level of education is among the highest in the world in the country where I live, it is still the same.

I sometimes believe that this is a part of human behavior and that it is the way it is and nothing can be done about it. But I also want to believe that it is not so, that we have been led down this path, perhaps deliberately and maybe for a specific purpose. I do hope that it can be different, that an attitude of critical thinking and individual responsibility can similarly be set as the mainstream instead.

nickdanger's picture
nickdanger
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Re: A Secretive Banking Elite Rules Trading in Derivatives

secretive banking rules ALL markets...follow the money flow.  the Federal reserve prints the money and give it to the banking system, the banking system has access to stocks and bonds in their own account.  they can computer trade their inventories to make it appear there is volume in the stock market.  REMEMBER, the elites are OUT OF THE DOLLAR.  They don't care if the market goes up or down (they are in gold and silver) but to us it is our life savings at stake and they know this...follow me here... the secret banking system suckers us in to the market by giving the appearance that everything is fine in the market, THEN, they orcestrate the crash.   they are in gold and silver and we are stuck with worthless paper.  THAT'S HOW IT WORKS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! AND THAT'S WHY THE MARKET IS GOING UP RIGHT NOW, BERNANKE , THE BANKSTER, IS FLOODING THE BANKS W/ MONEY, THE BANK PUTS PART IN THE MARKET TO PUMP IT UP, WE GET SUCKERED IN BY GREED AND THE NEXT THING YOU KNOW, YOU ARE SCREWED, GLUED AND TATTOOED!  NO JOKE.

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investorzzo
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Re: A Secretive Banking Elite Rules Trading in Derivatives

They might be the same group who pushed for suspension of "mark to market accounting" where the banks have no losses except on paper they don't report. Makes you wonder how they can go after the accountants when they turn around and do the same thing. What hypocrites!

http://www.fool.com/investing/dividends-income/2008/10/02/mark-to-market...

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nickdanger
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Re: A Secretive Banking Elite Rules Trading in Derivatives

it is fraud upon fraud, the insanity continues until we the people wake up from our zombie state.

David.a.Isaksson's picture
David.a.Isaksson
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Re: A Secretive Banking Elite Rules Trading in Derivatives
nickdanger wrote:

secretive banking rules ALL markets...follow the money flow.  the Federal reserve prints the money and give it to the banking system, the banking system has access to stocks and bonds in their own account.  they can computer trade their inventories to make it appear there is volume in the stock market.  REMEMBER, the elites are OUT OF THE DOLLAR.  They don't care if the market goes up or down (they are in gold and silver) but to us it is our life savings at stake and they know this...follow me here... the secret banking system suckers us in to the market by giving the appearance that everything is fine in the market, THEN, they orcestrate the crash.   they are in gold and silver and we are stuck with worthless paper.  THAT'S HOW IT WORKS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! AND THAT'S WHY THE MARKET IS GOING UP RIGHT NOW, BERNANKE , THE BANKSTER, IS FLOODING THE BANKS W/ MONEY, THE BANK PUTS PART IN THE MARKET TO PUMP IT UP, WE GET SUCKERED IN BY GREED AND THE NEXT THING YOU KNOW, YOU ARE SCREWED, GLUED AND TATTOOED!  NO JOKE.

Regardless if what you are saying is true or not, they way you are conveying your message is a poor way of conveying your message in my opinion. If you are sincere about making people aware of a perceived problem, I invite you to a calmer and more factual discussion. In this manner I doubt you will get much out of this forum and neither are you coming across as very convincing. I'm not trying to insult you, just to give you some advice. 

David

Dogs_In_A_Pile's picture
Dogs_In_A_Pile
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Joined: Jan 4 2009
Posts: 2606
Re: A Secretive Banking Elite Rules Trading in Derivatives
nickdanger wrote:

secretive banking rules ALL markets...follow the money flow.  the Federal reserve prints the money and give it to the banking system, the banking system has access to stocks and bonds in their own account.  they can computer trade their inventories to make it appear there is volume in the stock market.  REMEMBER, the elites are OUT OF THE DOLLAR.  They don't care if the market goes up or down (they are in gold and silver) but to us it is our life savings at stake and they know this...follow me here... the secret banking system suckers us in to the market by giving the appearance that everything is fine in the market, THEN, they orcestrate the crash.   they are in gold and silver and we are stuck with worthless paper.  THAT'S HOW IT WORKS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! AND THAT'S WHY THE MARKET IS GOING UP RIGHT NOW, BERNANKE , THE BANKSTER, IS FLOODING THE BANKS W/ MONEY, THE BANK PUTS PART IN THE MARKET TO PUMP IT UP, WE GET SUCKERED IN BY GREED AND THE NEXT THING YOU KNOW, YOU ARE SCREWED, GLUED AND TATTOOED!  NO JOKE.

nick -

Anyone who abdicates the control of their financial health to a "professional" financial advisor or investment advisor is foolish.  If you have all of this figured out and you still put money into the market under the control of an investment manager who can only make money in a green market, then it's YOUR fault if you lose money - not the fault of the spooky secret banking elite.

Learn how to trade and do it yourself.  Adopt a market neutral approach.  Stop trading around expecting the market to do what you want it to do and frame your trading by taking what the market gives you.

"WE GET SUCKERED IN BY GREED AND THE NEXT THING YOU KNOW, YOU ARE SCREWED, GLUED AND TATTOOED!  NO JOKE."

Yup - and getting suckered in by fear and/or greed, or ignorance is your fault.  Ignorance in the market can be cured.  Once you have ignorance taken care of, fear and greed work themselves out.

nickdanger's picture
nickdanger
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Posts: 43
Re: A Secretive Banking Elite Rules Trading in Derivatives

i believe what i said is true, if you aren't angry at what is going on with your country then YOU have the problem.  The Central Bankster work in secret, whenever you have secrecy and money mixed together you have collusion, front running and fraud (that's why they are billionaires).  you and I would go to jail if we did the things the Central banksters have done to this country...maybe it's time to step, you should be angry and if you are not then shame on you.

Dogs_In_A_Pile's picture
Dogs_In_A_Pile
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Posts: 2606
Re: A Secretive Banking Elite Rules Trading in Derivatives
nickdanger wrote:

i believe what i said is true, if you aren't angry at what is going on with your country then YOU have the problem.  The Central Bankster work in secret, whenever you have secrecy and money mixed together you have collusion, front running and fraud (that's why they are billionaires).  you and I would go to jail if we did the things the Central banksters have done to this country...maybe it's time to step, you should be angry and if you are not then shame on you.

You completely missed my point.  I'll be happy to discuss futher via PM or email.

nickdanger's picture
nickdanger
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Posts: 43
Re: A Secretive Banking Elite Rules Trading in Derivatives

my reply was at david, not you.  i actually agree with your point Dog but investors, for the most part,  invest by EMOTION. This is what i mean by getting sucked in.  Many investors sway back and forth, selling low and buying high. 

Dogs_In_A_Pile's picture
Dogs_In_A_Pile
Status: Martenson Brigade Member (Offline)
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Posts: 2606
Re: A Secretive Banking Elite Rules Trading in Derivatives
nickdanger wrote:

my reply was at david, not you.  i actually agree with your point Dog but investors, for the most part,  invest by EMOTION. This is what i mean by getting sucked in.  Many investors sway back and forth, selling low and buying high. 

Gotcha.  That's why I try to quote the post I am responding to.  Cool

What makes things worse, most "investors" think trading is investing.

Travlin's picture
Travlin
Status: Diamond Member (Offline)
Joined: Apr 15 2010
Posts: 1322
Re: A Secretive Banking Elite Rules Trading in Derivatives
nickdanger wrote:

i believe what i said is true, if you aren't angry at what is going on with your country then YOU have the problem.

Nick

I think David said in another thread that he is from Sweden.  It is good to remember that you are addressing a world-wide audience here.  Turning your anger onto another member who is trying to be helpful is not productive.  I’ve seen a promising new poster leave this site because of this.  I’d like to see David stick around, and you too.  Your anger is justified, just be sure it is not mis-directed please, because you have good things to say.

Travlin 

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nickdanger
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Re: A Secretive Banking Elite Rules Trading in Derivatives

quote from daily digest:

There is incredible greed at play — greed that could drive asset prices higher. The U.S. Congress created a catalyst for the new wave of greed by loaning Wall Street elites free money during the crisis — ‘counterfeit money’ to buy up financial assets on the cheap (see “It Takes a Pillage,” Nomi Prins, 2009). These loathsome Wall Street elites want to pump up paper assets as far as market psychology will bear, then take massive profits by off-loading shares into the general public’s retirement accounts. Market clues plainly suggests the plan is to induce the investing public to rotate from weakening bonds (where they parked themselves in their recent fear) into over-priced stocks. Working people are being set up to jump from the frying pan into the fire just before the sovereign debt crisis hits — a prospect that Wall Street no doubt finds quite soothing as ‘they do God’s work’ (i.e., calling to mind the remarks of one Wall Street CEO).

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