The Stock Markets: Dragging the World Down

How much have you invested in your pension fund over the years?  Where does your "local bank" or "Building Society" invest your savings so you can have a secure future now?   I think you all know you have a very insecure future (but that you dare not protest by investing in local initiatives because they do not produce the same returns that have been pledged by the stock markets since they were conceived).  The stock markets now speculate (swapping SHORT term & LONG term for the same motive)  on Global Deals that promise the Earth but deliver Satanic returns for all the unwitting investors (but more importantly the taxpayers who now fund entirely the activities in this sector which has no tangible product other than hyper-inflated expectation). 

Let start with recent events (that emphasize the futility and selfishness of this sector that unlike any other has grown in critical mass and manpower in the last decade)!
e.g. THE FACEBOOK IPO.....many of us use facebook and recognise it as an invaluable tool to keep in touch with friends, family and colleagues all over the worldothers see it in a different light or through a data dredging surveillance camera,   and more opinions.
Perhaps this is why facebook's flotation on the stock market raised expectations so very very high?  The "retail" (synonym for ordinary Joe's and Jill's) investors having seen the flotation of Google, Linkedin and others make millions of $$$$/£££££ for users in earlier stock market flotations lined up to invest their earnings or their savings to make a fast buck with minimal effort.  This time though, the massive windfall went to insider traders within Morgan Stanley and the long term private investors in facebook who piled out of the ownership of facebook shares as if this was a pre-planned plot (to rob those retail customers blind).  The share price on flotation was $38 and the volume of shares issued was inflated by Zuckerburg (or more likely his new advisors from the NASDAQ & his long established corporate/stock market & banking funders) to make massive profits in the sale of their shareholdings.  Within 14 days of trading the price the price per share plummeted to just over $27.  The staff at facebook bought into the retail deal with zeal thinking that their contribution would make them a personal fortune for their hard work and enthusiasm: instead Zuckerberg is selling off these shares (again)  because he needs to pay the income tax on the flotation and redress litigation issues that are coming at him thick and fast since the corrupt deal was done (corrupt in that it was entered into with the full awareness of insider traders and "lenders" who fraudulently plotted the collapse of this deal to pocket the difference).  By the end of August the share price had fallen to $20 dollars per share.  The benefits were huge for the traders and the losses (as usual) were massive for innocent investors. As wikipedia (busted for funding for its excellent product) puts it 
"Reputation of the bank aside, Facebook hasn't been a bad trade for Morgan." This is because even as the share prices dropped Morgan "racked up big profits" trading the shares.
PUMP & DUMP Schemes/Scams like this are a massive earner for those who created the criminal templates  to beggar the lay public, or in many corporate deals, their own customers:
TAKEHOME MESSAGE:  Facebook is a very meritworthy product but this initiative the scaling up of its capitalisation has not changed the product one bit: it was free and raised plenty of cash to sustain staffing and services from advertising revenues but now the shareholders need funding on a massive scale.....if there are to be any dividends for those that have been brave enough to invest in August/Sept Look at how it has transformed the lives of the insider traders at the top of the organisational tree.  The dividends will be dwarfed by the profits made by the designers of this scam and the ordinary user (will be expected to fund this so they can stay in touch with their data that draws in those revenues in a very unscrupulous manner).  PUMP & DUMP then PUMP again.  Time for an UNLIKE facebook button for ordinary people.  So is this type of scandal unique to entrepreuneurial corporations? Sadly not! Man Utd.......right into the reds zonehyping it up for the IPOTESCO insider tradingOutsider Tip Off: Buy TESCO Shorts and Get Rich Quick

e.g. THE SOVEREIGNS: a PROFITEERING PYRAMID
 Bloomberg and Squawk box Europe are news vents for the stock market sector which demonstrate the fragility of financial scams and just how closely intertwined with central bank policy the stock markets have become.  European finance chiefs met in Cyprus recently to initiate "New Deals" in the sovereign debt money lending and borrowing scandal.  The gravity of this situation became obvious in 2011 when the news broke that the Greek crisis was again to be bailed out (on the other side of the Atlantic, within 12 hours, the news that the markets could release a new bolus of National "Sovereigns" bonds issued at really high interest rates was breaking to the glee of those brokering the deals and within the IMF a tool for taxpayers money laundering all around the globe).    As I write, Spain again needs bailouts to ensure its meaningless ratings remain high with Moody's  and the other rating agencies.  As with all multi-tiered ponzi schemes the returns for the participating money lenders diminish quite dramatically after the first tier is over.  So, after bailouts for Ireland, Portugal, Italy, Spain (and with defaults by Iceland) the markets are now waking up to the fact that even when the austerity assets have been plucked out of, or purchased by acquisitive conglomerated global corporations, the pickings are diminishing really fast.   In September 2012, after a number of crisis summits had been and gone (for the G8, NATO G20 and their financial entourages)....it has been acknowledged by the stock market news brokers (Sept 2012) that the end of trading in this malign world may be nigh.  And that even though Ms Merkel and the EU governments had decided to allocate more Euros for bailing out struggling countries (the German state is thought to be funding circa 1/3rd of each of these pan-European deals) the returns on borrowing and lending (with instantaneous price or interest rate swaps imposed) was waning alarmingly for the ruthlessly greedy traders.  These traders inhabit/work for investment banks, central banks, listed companies all around the world and rely heavily on taxpayers funds or asset sales flooding into Northern Europe or North America from countries facing austerity within the same continent, trading pact or quantitative easing/stimulus scamsters at the interface with central banks.   The YIELD from these later SHORT deals is now running close to 0% (allegedly, or perhaps the criminal consequences for the creators of this scam are becoming more and more obvious) but a ten year Spanish Bond will still return 5.66% ( as recently as June 2012 a 10 year bond in Greek debt pledged to return 26.7%).  These returns are just published out of the ether....the current methods of pocketing growth funds will not allow these bonds, bunds and worthless coupons to mature to meet these hyper-inflated targets. Squawk Box Europe recently showed their true colours as they panicked in the face of the end of their profit taking world drawing nigh: "surely shareholders come first, before governments"                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       .  

e.g. G8 Countries Trading Abroad in the Highly Dangerous (investors & employees) MINING SECTOR!
The same was unequivocally true in the mining sector where unfortunate recent events had led to shedding of profits and of lives for underpaid miners in South Africa (at British Owned mines).  Unions were leveraging salary increases because the plea barganing this year has been accompanied by a massacre (which meant that wage austerity targets were being missed by all the  key players in this sector just to keep mines open).  Estimates of 14%-22% pay rises have been bandied around for Lonmin (post-massacre) but both BHP and Rio-Tinto are feeling the potential implications of gestures like this which may be required to keep these mining interests going on the shoestring staffing budgets.  In the gold mining sector many of the products traded are virtual commodities....that is you dont purchase gold bars or coins now you purchase paper coupons from a company with a registered office in a tax haven and a trading unit in an office anywhere across the globe which is tax friendly. When one of these traders defaults on their debts then the way to pay their creditors is to reduce trading costs by closing down a real gold mine (and produce cost savings to compensate).  

e.g. The Stock Market, Banking & Financial Services Sector and its Purchasing Power
This is a fascinating area. The stock markets have an eye for a good ruthless trade and a wide selection of corrupt governments and financial sector trading instruments to deal in.  Take for example Blue Bay Assett Management.  They are headed up by an elderly "gentleman" called Hans-Jorg Rudloff who has been a very well travelled executive at Barclays (Barcap, the investment arm of the ruthless British American run bank). Rudloff (a board member at pharmaceutical giant Novartis) has uncannily close links to the former banking regulators (who worked for Barclays and issued the Walker report: its author,his close colleague Sir David Walker (formerly head of Barclays retail operation) has recently replaced Bob Diamond as CEO at the bank and met the Parliamentary Commission on Banking standards in September 2012.  All these executives (including Marcus Agius) have recently fallen on their sword (on issues of corporate governance but THERE HAVE BEEN NO CRIMINAL PROCEEDINGS INVOLVING THESE HIGHLY PAID LEADERS).  Barclays flouted its links with the Lord Mayor of London as well as the Treasury Select committee on banking standards headed by Sir John Thurso a prominent financial expert in the Lib-Dem party). An Email to Sir John Thurso calling for reform on this inbred corrupted sector is appended as a file below  Rudloff, after leaving the Russian State Dept for oil and gas (ROSNEFT) has turned his multi-national corporate guns on trading with Exon Mobil in Black Sea geopolitical assets in liaison with the European conglomerate that has driven very expensive and politically risky projects under the corporate governance of Helmut Kohl's GASPROM.  Blue Bay Assett Management (recently acquired by the Royal Bank of Canada) treats its executive traders very very well indeed.  Although many of these stock market deals are in their infancy Blue-Bay's Hugh Willis and Mark Poole are already taking profits ($81.9M each for their 8.5% stake in the Hedge Fund Company).  Just an hour or so on the internet and a school pupil could see why governments perpetually want the curriculum changed......rather than learning from the unregulated greed of our political and banking elite.
 
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George Lees,
24 Sep 2012, 15:42
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