Any serious student of markets knows the ‘Efficient Market Theory’ is hokum. George Soros’ ‘Reflexivity Theory’ rules. In short, prices change perception and since most trading is done based on perception the case for fundamental analysis goes out the window. Example: dot coms in 2000. Into this mix add the fraudsters on Wall St. who manipulate prices – not to make or lose money per se – but to manipulate perceptions. We saw this in 2008 when stock prices were manipulated by Wall St. to give the impression that the banking sector was about to collapse. The government acted on that perception and handed trillions over to the fraudsters.
The same can be said of rigged polling results. Changing the perception of the public mood can change the outcome. Because people act based on perception, not reality. The popular website DailyKos is suing a pollster for this very reason.
Recently, I called for some favors from friends who are connected with the MPAA (I served on the board of the Creative Coalition) to stop Cantor Fitzgerald’s box office futures contracts because I knew from my experience running HSX/Cantor that insiders were abusing their position in ways that were not consistent with free market capitalist principles and I hated the thought of another American industry getting torched by Wall St.
In the case of Cantor Exchange and Trend Exchange, this means moving prices outside of the ‘price discovery’ mechanism; producing exogenous results for nefarious ends.
Government officials hoping to restore balance and accountability to markets are, unfortunately, beholden to the market riggers and perception manipulators who throw a few dollars at the politicians to finance their election campaigns. We cannot expect anyone working inside government to stop this abuse. Only through direct citizen action can any change happen. The recent boycott of BP, in my opinion, should be expanded until BP’s stock is driven down to zero. And if ExxonMobil comes in and takes them over, then the boycott should move over to Exxon.
In a more perfect world, the Federal Reserve Bank should have kept interest rates high enough to deter the market riggers and perception distorters in the vein of Paul Volcker (now marginalized for obvious reasons). In other words, the tools to rectify the economy are within government’s grasp.
The government needs to fight the perception, put out by a complicit media, that doing the right thing is somehow counter productive. America needs to stop worrying about what the rest of the world perceives as its short comings and focus instead on taking the necessary actions required to give markets what they need to restore vitality, transparency, and integrity across all the various trading platforms that comprise the backbone of our economy.
Tags: dailykos · federal reserve · perception · pollsters · reflexivity · soros · volcker30 Comments
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Afternoon Stacy!
Mike
America needs to stoop worrying about what the rest of the world perceives as its short comings and focus instead on taking the necessary actions required to give markets what they need to restore vitality, transparency, and integrity across all the various trading platforms that comprise the backbone of our economy. MK
@Max,
You’re the man. Speaking of doing what is right, how about a bailout of all the victims of government backed fractional reserve lending (EVERYONE) with new legal tender fiat (United States Notes) followed by genuine capitalism?
By America, is Max referring to the IMF or the World Bank Group? By government, is Max referring to Geithner or Bernanke?
What about Wolfensohn?
Are we allowed to talk about the sdr, or is that a “red herring”?
Does Deutsche Bank exist?
Are we spreading fairy tales? If so, I’m the Wicked Witch of the East.
boo
Perception has become so distorted people don’t know what is right anymore. Markets have become plastinated like the cadavers that German scientist does the anatomy shows on. And its the thoughts, opinions and perceptions of living people that are plastinated by the media and the market riggers to accept that state of affairs and to think it is right and normal.
@Mike
Stacy has a boyfriend – get over it.
Love you, Max.
Thanks for the honesty. check out the Fall of the Republic on u-tube…..they intend no recovery. Mr O now works as the chairman of the UN Security council…..directly against the Constitution. the plan is create a dollar fall so drastic that they can usher in the new Global Currency, and control all the commerce in the world…..along with the facist carbon tax. Devastating info, but all Americans need to see it to understand the depth of this deception.
Here is a game?
Is this possible could £100 per wk is worth £3million to the banks? Where am I going wrong. This appears crackers?
I think £100 pounds per week housing benefit may give £3000 0000 leverage to a bank
Take this chain as a money supply
(1) Bond Holders => (2) Government => (3)Housing Benefit => (4)Bank
This is a path
(1)Interest => (2)Tax Money => (3)Grant 5% return=> (4) 30Leverage
(3) 5% Return allows landlord from bank to borrow £100,000
=> (4) 30 x Leverage the bank on £100 000
What im suggesting is:
(2)£100 /week gives £5000 per annum => (3) 5% Return lever £100 000=> (4) 30 x Bank Leverage against new asset of £100,000
Therefore 30 x £100000 gives £3000 000 so thats how £100 per wk is worth £3million to the banks
Hello Max & Stacy,
BP is in my opinion now the goose that lays the golden egg and should never be destroyed. Environmentalists and Government should milk them for all they are worth!
Maria Meados
dude, I’m in “Fall of the Republic”
Have YOU watched it?
On the BP issue I tend to go along with Ron Paul, Judge Napolitano from freedom Watch when they said that by Obama Presidential decree from $20bn off BP should not be allowed to happen. What if the damages are worth more than that which they probably will be? What happened to the rule of law (stupid question I know!)? I’m not real up to date on all the politicking of this crisis but geez, it’s the Chernobyl of the Gulf isn’t it!
I’ll never buy from BP again, if I can help it. Just the free market at work, eh? Who can complain?
For some reason whilst reading this the song “candle in the wind” came to mind. Dont know if it means anything.
Apparently, a new report suggests that the US was abused during its formative years, so could be hard to get it to change: http://onion.com/bQvERP
@F. Beard
the bp stations where i live are now called “chuckles.” don’t know if chuckles is affiliated with bp, but chuckles might be avoided as well
Hey if Ambrose Evans Pritchard thinks we should end the FED I’m all with him, but why not the Bank of England too? They have ruled Britain since it was born in 1707 and before that ruled the Kingdom of England which also included Wales from the early 1600′s forward. The BOE is just as evil and corrupt and they have been at it much longer.
the bp stations where i live are now called “chuckles.” white hunter
Thanks! Hopefully, I can stay informed of the various name changes.
My Sanks family ancestors still lived in Britain in 1707 when it was joined together England and Scotland. Remember Wales was apart of the former Kingdom of England from 1536 until 1707 although we conquered Wales in 1284 the formal union began in 1536. Wales was England’s first colony in many ways.
@Stacy,
I love that picture of you when young but it is too small for my old eyes. How about a high def one?
@Max,
You are a lot better looking than your avatar. I suggest another characterture to do you more justice.
Our good friend Bono is in the news again; and falling over his ego and putting out his back
Bono buys up Facebook
http://new.uk.music.yahoo.com/blogs/pop_gossip/4854/bono-buys-up-facebook/
The singer’s private investment company, Elevation Partners, already owns $80 million in shares in the company, but has now upped its stake to a whopping $140 million.
Talk about self-serving! Only after it seems that the MPAA has successfully lobbied congress does Max then attempt to claim credit for it.
I can understand his reservations about the Cantor Box Office product offering, but I have yet to see Max provide anything close to a succinct and accurate example for how the Trend Exchange Opening Weekend product offering can be manipulated.
“We cannot expect anyone working inside government to stop this abuse. Only through direct citizen action can any change happen.”
Except when Americans get off their ass to do that they don’t ask for reasonable government, they screech about the ongoing communist takeover they heard about on Glenn Beck. Besides, “Dancing with the Stars” is on!
Too few reasonable people left. Call me a pessimist. I’d love to be proven wrong.
“The government needs to fight the perception, put out by a COMPLICIT media, that doing the right thing is somehow counter productive”
Absolutely, Max! Just saw a TV commercial that made me want to retch…
…the Big Oil + Big Finance types who sabotage alternatives to our GLUTTONOUS OIL ADDICTION (the better to sustain their Fossil fuel monopoly “profit center” STRANGLEHOLD profit structure over our economy –
http://www.forbes.com/forbes/2009/0413/096-sachs-semgroup-goldman-goose-oil.html )
are now running ads saying that the temporary moratorium on offshore oil drilling will “raise energy prices, and HURT JOBS.”
The PEOPLE who are INTENTIONALLY TORCHING the economy – literally charging us _another!!_ $2 TRILLION to buy their
“TOXIC SECURITIES” FAILURES,
http://www.economicpopulist.org/content/federal-reserve-toxic-asset-purchases-5-trillion
otherwise they will self-destruct & torch our economy with them…
(and, oh, by-the-way… they WANT to TORCH _our_ Social Security to raise that $2 Trillion for their next “bailout” –
http://www.independent.co.uk/news/business/news/us-budget-deficit-is-not-sustainable-bernanke-warns-1996093.html )
are PRETENDING that they are concerned with our jobs & economy!!
Max and Stacy you are the Lux Interior and Poison Ivy of the financial world and i mean it in the best way.
@stacy you and the onion may think you are joking but check out ptsd nation by dr. omaha over at freedomain radio.
America is to corrupt it will not do the right thing
Interesting, as always.
“The government needs to…”
Fix prices to fix perception to fix prices.
Did daddy do your homework, too?
http://www.youtube.com/watch?v=2wTOqMYA1xw&feature=fvw
i got no money my cur dog ..wife died blees her .you need a army mr max
http://www.youtube.com/watch?v=XsbtAxGTAE4