Who Sold Short? Part 2

The Securities and Exchange Commission (SEC) reported that last May's almost 1000 point drop in the Dow Jones average and other indices was caused by a computer program that spawned a large sell order late in the day at a time when the markets were stressed. The SEC said that various factors were responsible for the crash. When I saw that this program executed at a time of market stress I had to think that there may have been manipulations of the markets (See Carpe HUNC of May 9, 2010). There was no mention of short selling on that day and and who may have profited from such a crash. I have smelled a rat and the stench grew. The SEC must start effectively policing these scoundrels and not white wash the whole affair.

Who Sold Short?

That is the question regarding last week's precipitous, half hour loss in value of Dow Jones Index stocks. The media do not ask and it appears as though authorities are not considering it. There is evidence, in the past, of stock manipulations relating to events like the assassination of President Kennedy and the September 11th attacks. The securities of United and American Airlines sell short leading up to the assault on the twin towers. This gets some media attention, but not much follow up. There is also evidence of price manipulation of agricultural commodities on the day of JFK's death. The subsequent short selling nets hundreds of millions for unknown gangsters. It is obvious that some with wealth and power have advance knowledge of these events and profit. Authorities must investigate situations such as last week's and bring those responsible to justice.