Wash trades, Market manipulation and High Frequency trading or The Market is Broken and Corrupted by the too big too Fails!

Here are some more terms you can add to your Banking term dictionary.

Wash trade = An illegal stock trading practice where an investor simultaneously buys and sells shares in a company through two different brokers.

Market Manipulation= The act of artificially inflating or deflating the price of a security. In most cases, manipulation is illegal. It is much easier to manipulate the share price of smaller companies, such as penny stocks, because they are not as closely watched by analysts as the medium- and large-sized firms.  (Also known as “price manipulation”.)

A good example of this is the Attack on the NZ dollar in 1987 

High Frequency trading = A program trading platform that uses powerful computers to transact a large number of orders at very fast speeds. High-frequency trading uses complex algorithms to analyze multiple markets and execute orders based on market conditions.

It is estimated that in today’s stock market some 84% of all trades are made by computers as High Frequency trades and only 16% by people.

And here is a little video showing a robot hand which is so fast it will beat you at the Rock, Paper, Scissors game 100% of the time and which I will use to explain to you how the Powers that be manipulate our financial and political world.

The robot hand wins this game because it is cheating of course. It is so fast (milliseconds is a Key word here) that it can wait to see (build in camera with recognition software) what your move is going to be and give the appropriate response.

Here is a graph showing a 10% upswing in the Greek stock market just before the Last Greek election. This election showed a dramatically increased popularity of the ultra left wing anti Bail out party Syriza and a win for that party would have started the collapse of the Euro and the Global Financial System.

According to the article a leaked secret poll was the reason for this upswing because that together with bookmaker data showing the betting odds were that not Syriza but Neo Democratica was going to win suggesting that the win of that party would have the support of the trading world and a possible solution of the financial crisis.

Now let’s get back to the New Banking terms at the beginning of this post.

84% of all trades are now computer managed High Frequency trades. The software performing the Trading algorithms is proprietary which means that they are owned by the banks that run them so we don’t know what goes on in there but a man who does know is Max Keiser because most of them are based on code he wrote and patented.

According to him the compters are so fast that while a trader will make a bit the computer can see what that bid is and buy the trades at an even better bid. Again Milliseconds are the keyword here. Just like the Robot hand the high frequency computers can make the bid after it has spotted the bid it is going to outbid.

Now combine this with the term Wash trade and you see where this is going. If you need to manipulate the Stock/Currency/Commodity market in order to get a result you need, all you need to do is to trade in say the Greek bond/Stock market and buy and sell the same products to drive prices up or down and you can manipulate the entire Global financial, Economical and Political spectrum.

If you don’t believe that this is done continually I would like to give you the example of how Nathan Rothschild cornered the entire English stock markets buying shares for cents on the dollar because they had the fastest information about who really won the battle of Waterloo.

The shares would go up in case Napoleon lost the battle but down if he won. Nathan Rothschild had a personal courier overseeing the battle and knew that Napoleon had lost but he pretended he won by selling his shares making everybody sell theirs at rock bottom prices after which the family started to buy the devalued shares making him an multi millionaire many times over when the real news broke making that the earliest example of a wash trade and High Frequency trading to manipulate the market!

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