Unconscionable Manipulation in the Stock Market

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Last week casino owner and billionaire Steve Wynn admitted something that few people on the inside are every willing to acknowledge. He clearly stated that stock market can be manipulated using the very loopholes that we identified at work in the 2008 collapse, including naked short selling, dark pools, and high-frequency trading. Here are some quotes from his recent conference call:

“…the exchanges don’t enforce the rules of naked shorts. So, I mean, it’s unconscionable manipulation of the stock that occurs. They open up every morning, and the high-frequency traders in the shorts have a ball selling shares, and then value buyers step in the afternoon and they cover the shorts. I mean, it’s regular casino activity.” The company currently has about 14 million shares short, or almost one-quarter of total float. Continue reading

This Bear is Just Waking from Hibernation

As the market drops 200 to 300 points daily on a fairly frequent basis these days, and has now dropped 13% in the last four months, John Hussman’s valuation analysis based upon historical facts is proving to be accurate. He’s not an “I told you so” type of person, but I am. The MSM stories follow the same old storyline – this is just a correction, time to buy the dip, stocks are undervalued, the Fed won’t let the market fall. We’ve been here before, twice in the last fifteen years. Wall Street and their media mouthpieces attempted to spread misinformation about the nature of the markets in 2000 and 2007, as epic bear markets were just getting underway. John Hussman cut through their crap then and he is cutting through it now. Continue reading