Aslam Levy

I’ve been reading alot of finance related material over the last year that has really been an eye opener to me. I’m starting to agree that alot of today’s financial turmoil was escalated by Nixon when he moved the US dollar off the gold standard, see Nixon Shock. I don’t normally post finance related article’s. But this one, which was so huge was swept under the carpet so fast it caught my attention.

On May 6th 2010 the Dow Jones Industrial Average dropped 1000 points intraday and magically “recovered” to end the day 348 points down. The Massive drop was blamed on a trader that placed a SELL order of “Billion” instead of “Million”. The theory goes that once this sell order happened the Triggers that are setup to Sell on Exchange Trading software kicked in. This started the 1 Hour freefall. Kinda like a Domino effect.

Obviously the Market was in freefall, but who or what kicked in to break the fall and lift the market back up by the end of day. Robert Kiyosaki has his theory over at Conspiracy of the Rich, which speaks about “The Plunge Protection Team”.

JohnA over at Current.com voices this opinion:

“Trader error”, it was a “glitch”, BULLSHIT! Your telling me I can buy a stock for a penny that 15 minutes ago was worth $40 and 20 minutes from now it will be worth $39, and that is a “glitch”. Bull Shit. They hit P&G, a Dow component, so the Dow Jones goes down, so goes the S&P, so every other stock goes down, then the trade triggers kick in, the computers take over, and late enough in the trading day so all the market circuit breakers are turned off, and it’s a “glitch”? Bull. Someone made a shitload of money today, more money in thirty minutes than most of us will ever see in a lifetime. The House Finance Commitee is already calling hearings and the NASDAQ is canceling trades. Heads will roll over this, as well they should. But those that lost their money will never get it back. All in one day. “

Some pertinent questions need to be asked:

- How can someone(Plunge Proctection) so easily regulate the Stock Market, considering that we are made to believe that the Market is driven by the exchange of stock.

- Will the JSE remain unaffected by a US Market crash, and how are we preparing for it?

- What does this kind of volatility mean for the global outlook of the financial markets, and is it time to move your paper assets to physical commodities like gold?

One thing I do know for sure. There are many people who will lose vast sums of money, and a few that will make amazing wealth.

-A-