Indeed, countries with major exports to the US (VZ,Iran,China) could not only use their dollars to manipulate our markets, but could also coordinate this with an announcements about cuts in oil deliveries or forex policy.

The late "futurist" Herman Kahn used to say that governments have the hardest time dealing with simultaneous, multiple crises.

Sudden large bets against US treasuries, against US stocks (not to mention OTC derivatives)on the eve of a major announcement affecting oil or currency markets would seem to qualify.

Some take comfort in the notion that other nations would not act against their own economic interests. But, at the end of the day, gov'ts are political not economic actors. In view of the speed with which dollar assets are accumulating overseas, what's a 25% haircut compared to the potential political gain against the west?

Interesting viewpoint, and not outside the realm of possibility, although unlikely. It meets Dudley's viewpoint of unanticipated.

FWIW, Osama bin Laden has targeted the U.S. economy as a goal for wrecking havoc and eventually bringing collapse. Those of us in the business of so called homeland security are aware of other ways to target the economy. Your article provides another. So far he has been unsuccessful and hopefully will continue to be.

It does not even have to be a deliberate assoult. It could simply be a trading decision.

For example, we all know that the japanese piled into the US Treasury market when the Fed stopped raising.

Can you imagine what those same traders will do if the Fed raises again?

One thing we do know is that on 9/11, someone had large put postions on the airlines stocks. This should have been no problem for agencies to trace the origin. To my knowledge this was never done or if so never disseminated to the public.

Why not?

How would this work? Would the short against the ETF trigger program traded arbitrage against the stocks that make up the ETF? I have to admit, I have multiple brain cramps understanding the logistics of ETFs and the double inverse funds.

Thanks and please be kind :)

Miggs

"One thing we do know is that on 9/11, someone had large put postions on the airlines stocks. This should have been no problem for agencies to trace the origin. To my knowledge this was never done or if so never disseminated to the public."

This is an urban myth, a variant on the conspiracy theory that the US government really blew up the WTC.

The 9/11 Commission investigated and concluded:

"This appendix describes the staff and U.S. government investigations into the issue of
whether anyone with foreknowledge of the 9/11 attacks profited through securities
trading, and explains the conclusion in the Commission's final report that extensive
government investigation has revealed no evidence of such illicit trading.

Almost since 9/11 itself, there have been consistent reports that massive “insider trading�
preceded the attacks, enabling persons apparently affiliated with al Qaeda to reap huge
profits. The Commission has found no evidence to support these reports. To the contrary,
exhaustive investigation by federal law enforcement, in conjunction with the securities
industry, has found no evidence that anyone with advance knowledge of the terrorist
attacks profited through securities transactions."

http://www.9-11commission.gov/staff_statements/911_TerrFin_App.pdf

BG, Thanks!

My only problem is that I do not trust the government and believe the government lies to its citizens. Hedonic numbers for one.

One other point, and I really do not wish to debate conspiracy theories, but on the day of attacks, upon witnessing the fall of the first building (on TV); my first thought was we were lucking that the building came straight down and I thought it odd that it did and same with second tower. Also thought it odd that two planes struck nearly identical towers in different places, but both towers pan caked the same way. Also, why did building 7 (?) which was not hit by any plane just falling debris collapse in a pancake fashion.

Again, BG, not debating, this is just my observation of that event that does not resonate properly in my mind.

Thanks Again.

Telestar3d,

My understanding is that the heat from the extreme blast caused the internal metal structure of the buildings essentially to melt, at least on the floors closest to the blast. There would be no reason then for the buildings to fall sideways, because it wasn't the force against them that knocked them down.

Ok Eddie that explains the two main towers, but how does that explain building 7 (?)
I will not comment on this anymore as this is just my observation and the subject's too incendiary (no pun intended).

By the way nice action in KRY today: Block Trades 39, Block Vol. 590,000 and just after close 47,500 block @ 3.63 not in the above.

Thanks to everyone here at Cara that makes this blog so interesting and civil.

T3d

Telestar3d

I can understand you're skeptical of government numbers (CPI, PPI, etc.). I question some myself.

However, the 9/11 commission report was a very thorough report by a reputable bipartisan group. Nothing is perfect, but it may be worth reading the 9/11 if you have the time.

Otherwise, I watched KRY near the close also and liked the trend. Long KRY.

Re 9/11, I remember seeing on network news video of Osama telling a Saudi cleric of his surprise when the towers came down (assuming the translation was accurate.) I had supposed the bad guys had hired structural engineers to tell them just which floor of the twin towers to target, but apparently not. They weren't that smart - but I fear the next generation of them will be!