Bilderberg.org

[Johnny Meadows]

Article from Prison Planet:
http://www.prisonplanet.com/articles/august2007/270807_market_crash.htm

"Market Crash Forecast Suggests New 9/11"
Mystery trader bets on huge downturn that could only be preceded by catastrophe

Paul Joseph Watson
Prison Planet
Monday, August 27, 2007


A mystery trader risks losing around $1 billion dollars after placing 245,000 put options on the Dow Jones Eurostoxx 50 index, leading many analysts to speculate that a stock market crash preceded by a new 9/11 style catastrophe could take place within the next month.

The anonymous trader only stands to make money if the market crashes by a third to a half before September 21st, which is when the put options expire. A put option is a financial contract between two parties, the buyer and the writer (seller) of the option, in which the buyer stands to benefit only if the price of the asset falls.

"The sales are being referred to by market traders as "bin Laden trades" because only an event on the scale of 9-11 could make these short-sell options valuable," reports financial blogger Marc Parent. Dow Jones Financial News first reported on the story.

The trader stands to make around $2 billion from their investment should an event trigger a market crash before the third week in September.

Such a cataclysmic jolt could only happen as a result of two factors, China dumping its vast dollar reserves in reaction to the sub-prime mortgage collapse, which it has threatened to do, or a massive terror attack on the same scale or larger than 9/11.

9/11 itself was foreshadowed by unprecedented put options that were placed on United and American Airlines. Though the Securities and Exchange Commission refused to reveal who placed the options, private researchers traced the investments back to the Deutsche Bank owned Banker’s Trust, which was formerly headed by then Executive Director of the CIA, Buzzy Krongard.

Put options on Morgan Stanley and Merrill Lynch, two of the World Trade Center's most prominent occupants, also spiked in the days before 9/11.

News of the suspicious trades is dovetailed by the comments of Former US Treasury secretary Larry Summers yesterday, who told ABC News that the risk of a recession in the U.S. was greater that at any time since 9/11.

[Johnny Meadows]

From: http://www.prisonplanet.com/articles/august2007/310807_analysts_dismiss.htm

Analysts Dismiss Suspicious "New 9/11" Trades
Experts track down nature of transactions but concede they represent biggest gamble since last September

Paul Joseph Watson
Prison Planet
Friday, August 31, 2007


Market analysts from TheStreet.com have dismissed concerns about suspicious trades that seemed to indicate a major terror attack or other catastrophe was around the corner, leading to a stock market crash, but still concede that the transactions outstrip anything seen since last September.

As we reported on Monday, a mystery trader risks losing around $1 billion dollars after placing 245,000 put options on the Dow Jones Eurostoxx 50 index, leading many analysts to speculate that a stock market crash preceded by a new 9/11 style attack could take place within the next month.

The anonymous trader only stands to make money if the market crashes by a third to a half before September 21st, which is when the put options expire.

However, experts at TheStreet.com have dismissed the so-called "Bin Laden trades" as nothing more than nervous lenders trying to attract customers at a time when the market is fraught with apprehension following the sub prime mortgage crisis coupled with last week's stock downturn.

"Dan Perper, a Partner at Peak 6, one of the largest option market makers and proprietary trading firms, has confirmed that the trades are part of a "box-spread trade," report Steven Smith and Aaron L. Task.

"This was done as a package in which the box spread was used [as a] means of alternative financing at more attractive interest rates" explained Perper.

"Simply put, two parties agree to trade the box at a price that essentially splits the difference between current rates."

"For example, the rough numbers would be that given the September 700/1700 box must settle at a value of 1,000 -- it is currently trading around 997 -- that translates into a 5% interest rate."

"For the seller it is a way to borrow money at a slight discount to the prevailing rate, and for the buyer, it is a way to lend money at a low rate of return, but it's better than nothing at a time when others are scared and have painted themselves into a box (ha ha) because they have run out available funds."

Though seemingly skeptical that the trades could foreshadow outside events, as was the case with the put options placed against American and United Airliners in the days before 9/11, the analysts concede that the volume of the trades "completely outstrips anything seen last September."

They also note that, "The positions in question had option industry experts perplexed to come up with a rational explanation, which are far from the best or most efficient way to profit from what would be outlier events."

[samuel]

In one article from august 19th 2006 in economics focus (the economist),

The author look for different level of recession:

a) 1% growth in unemployment for 4 years and 3 months, or for others 2 years and a half.

Then looks for a strategy to use the recession constructively:

1)Import tariff on strategic goods (luxury goods)

2)boost manufacturing capacity by 17% to lower export deficit to 2.5% of GDP.
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What is possible if you take into account the amount of cynism by the majority who vote?