Who Could Possibly RUN the banks for $550 Billion in 2 hours?
After reading the comments of Rep. Paul Kanjorski (D Penn) regarding the $550 Million dollar run on US banks on September 11th, 2008, between 9am and 11am, I am amazed at the lack of news interest this seed of our economic collapse has received.. Or maybe I’m not.. But certainly, the coincidence of it happening on SEPTEMBER 11th MUST seem suspicious to someone? Am I just paranoid? What are the odds?
But I think the important question is WHO executed this run and why? Such an enormous sum would require some kind of collusion, some type of panic and communication of the said panic very quickly..
So what prompted this panic, (if that is what it was)? If we can identify the first really large withdrawals, we could explore if the economic collapse was really caused by random panic or intentionally triggering.. I probably wouldn’t even consider this, allowing basic skepticism to override my suspicions if it wasn’t for the DATE of the run… It was either an amazing coincidence or someone has a very evil sense of humor..
Another thing that makes me very suspicious is the FACT that a similar “run” happened on that tragic day of September 11th 2001.
Insider Trading on 9/11
The overwhelming amount of evidence that virtually confirms insider trading on an unprecedented scale in the days preceding 9/11 is staggering.
A “put” option is a leveraged bet that a stock price is going to fall precipitously (a “call” option is the opposite bet). The afternoon before the attack, alarm bells were sounding over highly unusual trading in the US stock options market. There was a jump in United Air Lines 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. There was a jump in American Airlines put options 60 times (not 60 percent) above normal on the day before the attacks. No similar trading occurred on any other airlines.
Between September 6-10, 2001, the Chicago Board Options Exchange saw suspicious trading on Merrill Lynch and Morgan Stanley, two of the largest WTC tenants. An average of 3,053 put options in Merrill Lynch were bought between Sept. 6-10, compared to an average of 252 in the previous week.
Merrill Lynch, another WTC tenant, saw 12,215 put options bought between Sept. 7-10, when the previous days had seen averages of 212 contracts a day.
According to Dylan Ratigan of Bloomberg News: “This would be the most extraordinary coincidence in the history of mankind if it was a coincidence. This could very well be insider trading at the worst, most horrific, most evil use you’ve ever seen in your entire life. It’s absolutely unprecedented.”
The most important aspect of this incredibly suspicious aspect of 9/11, (a legitimate motive for the attacks for parties within the US or abroad) is that this remarkably prophetic market move was investigated and deemed to be complete coincidence. I personally know a friend investigated for significant profits made at that time in Put options on the airlines, (Placed weeks not days before) and his motivation was completely innocent. But he had heard rumor of Airline distress prior. But the sheer volume of Put Options placed within 72 hours of 9/11 absolutely transcend any possibility of simple lucky guesses or simple rumors..
Given the documented cover-up of significant evidence of 9/11/2001 by various officials including the ridiculous 9/11 commission, I personally cannot avoid being convinced of at least some kind of collusion beyond Al-Kaida in 9/11, and given that assumption, I find it impossible to believe the ORIGIN of the Put Option frenzy before 9/11 to be coincidence.. It has also been suggested that numerous people in the WTC received warnings the morning of, or even day before the attacks, and this hearsay would not stand on it’s own, but when added to the huge body of suspicious facts, it takes on a new life.
Now honestly, if we truly approach these two events objectively, can we possibly avoid the strong suspicion that they are connected? Could the date of 9/11 alone have been a catalyst for the run in 2008? Maybe fear of another attack or just simple coincidence?
If the remarkable Put-option prognostications of 2001 were the only suspicious element in the 9/11/2001 attacks, we might also be able to shuffle this off to coincidence, but as can be observed by reading the numerous postings on this site documenting the PHYSICAL evidence indicating at least some kind of collusion and cover-up in the attacks by factions inside the US and/or the Government, the coincidence explanation becomes very hard to swallow.
So if the 9/11/2008 run on the banks WAS a conspiracy, who stands to gain by crashing the economy? As I have suggested in an earlier post, at the global economic level, the amount of money a huge company loses in value in a crash is overshadowed by what they can DO with the cash they have after the crash — for trillions of dollars of cutting edge new technologies and intellectual property as well as well established distribution channels are available to the cash-rich companies for pennies on the dollar.. And while their stock price may go down substantially, these powerful companies can actually dramatically increase their relative worth, ie. their ability to compete in the marketplace, after a major crash. It happened in the Dot com crash, where major telecom projects were bought for pennies, and the cheap communications it facilitated changed the face of global business forever, opening the door to offshore outsourcing of the US service industry.
That is just one example of this process of consolidation after a crash… And in the 2008 scenario there are critical elements to consider. Where did the money go? Did they have inside information to know that the banking system was hyper leveraged in the housing pyramid scheme and derivatives scandal, and was ready to collapse anyway? So they simply pulled the trigger while protecting their assets from exposure, and of course protecting that cash from major bank insolvency so it would be available to aggressively buy in the subsequent fire sale of the American economy? Conspiracy theory? Maybe.. Maybe not… It’s certainly possible, in fact, probably easy for the players at the top.… Can such massive market manipulation be prevented?
We may never know the answers to many of these questions, but we certainly will never know anything if they are not properly investigated. And given the fact that this suspicious run on the banks has completely dropped off the news radar, and barely leaked in the first place, it appears it will not be investigated at all unless we the people demand it.. And that still may not be enough, for with the innate volatility of the market, the actual trigger may be very hard to identify…
But regardless if we can identify intent in this tragic collapse, we must move aggressively to prevent it by dramatically reducing the volatility in all aspects of the free market to prevent such runs in the future, or this pattern of bubble and bust, that has channeled the majority of the wealth in this country upward for a century will continue forever.