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November 28, 2005

Organized Rogue Traders, Mon., Nov. 28, 2005, 2:30 PM

The word rogue" is a term of rebuke. There is an inference of arrogance and skulduggery, possibly deceit and even theft, by a few scoundrels working together against the common interests of many.

So I am going to use that term, often, in describing organized groups" whose intentions are to exploit capital markets for more than the original purpose, which was to facilitate the fair market trading between all owners of capital.

Let there be no mistaken understanding about what I am writing. I am talking about gangs " perhaps criminals, perhaps not " but certainly organized syndicates, whose interest is not your interest unless you happen to be one of them.

I am not talking about the sell-side (which I continue to say is crucial to the efficient operation of a capitalist society); I am referring to the so-called "private equity" groups.

You will be shocked to see the methods used by these people to seek their goals. Think about these:
1. Buying political influence for obvious reasons
2. Hanky-panky with judges
3. Hiring former military leaders to lobby current military leaders
4. Acquiring Big Media to coerce journalists to become cheerleaders
5. Forcing the take-over of major corporations, or pressuring them for desired spin-offs

I was pleased to see that, following my recent rants, today's business section of the Toronto Star, Canada's biggest newspaper in terms of circulation, had the two most important articles by their lead writers focused on this topic.

This is essential reading. Everybody needs to see what is happening.

Rogue investors on Big Mac attack"

Newspapers must put journalism before bottom line"

We the Little People " and that includes managers of mutual funds and pension plans -- still own and manage substantial capital, but if we are going to keep it from these organized rogue traders, we need to unite, and stand and say: We are no longer going to take this crap."

Posted by Posted by Bill Cara on November 28, 2005 02:30:19 PM | Category: Cara Today in the Market

Discourse

Bill,

The forces written about in these links and of which you have spoken often in your blog are very much present and working to exploit incompetent securities regulators and a part of our ( Canadian) judicial system complicit in these matters. How do think I felt when I wrote to the Editor of the Globe & Mail, exposing the insolvency game being run through the courts under a CCAA - only to see some of it end up in the Marxist-Leninist Daily? This was an obvious move to marginalize me and discredit the findings which, among other things, showed the linkage between Hap Stephen & Judge Farley and how they had recently provided seminars to insolvency specialists in Vancouver and Toronto at the time that Stelco was being presented to Judge Farley as a re-structuring candidate. So much for investigative business reporting and an impartial and independent judiciary!

Posted by: TerryC [TypeKey Profile Page] at November 28, 2005 10:41 PM [link]

OT

CNBC Bond/Gold conundrum discussion this a.m. "It makes no sense!" Steve Leisman

Excuse my simple mind but I beg to differ:

Forign buying benefiting: Gold, Bonds
Flight to safety benefits: Gold, Bonds
Underweight by public investors: Gold, Bonds
Underweight by professional investors: Gold, Bonds
Deflation/Chaos beneficiaries: Gold, Bonds
Beneficiaries when confidence in government leaders, corporate leaders, media and wall street falls: Gold, Bonds
What goes up when stocks have there 1st down day in weeks: Gold, Bonds

Conundrum? I think not. Does yesterday give us a clue as to where money will flow if/when the market and economy rolls over? One day does not make a trend but I think this bears watching. A year ago I felt that what could go wrong for stocks would be right for energy. Today I feel that way for bonds and gold. If one has equity exposure then gold and bonds have a place. I no longer have energy exposure (sold too early with great gains).

Long- GLD, Miners, TLT, STRIPS

Posted by: stockman [TypeKey Profile Page] at November 29, 2005 8:06 AM [link]

Stockman-
Makes sense to me also. Where else to go? Most of public distrusts gold, so bonds after equities crap out. Most public thinks gold goes to the moon and quickly returns but bonds are safe and stable.

Long miners.

Posted by: MarkM [TypeKey Profile Page] at November 29, 2005 12:40 PM [link]