Market Manipulation

February 18, 2015

“Market manipulation is a deliberate attempt to interfere with the free and fair operation of the market and create artificial, false or misleading appearances with respect to the price of, or market for, a security, commodity or currency. Market manipulation is prohibited in most countries, in particular, it is prohibited in the United States under Section 9(a)(2)[1] of the Securities Exchange Act of 1934, in Australia under Section 1041A of the Corporations Act 2001, and in Israel under Section 54(a) of the securities act of 1968. The Act defines market manipulation as transactions which create an artificial price or maintain an artificial price for a tradeable security. Market manipulation is also prohibited for wholesale electricity markets under Section 222 of the Federal Power Act[2] and wholesale natural gas markets under Section 4A of the Natural Gas Act.[3]

http://en.wikipedia.org/wiki/Market_manipulation

Along with zero hour contracts JobBridge has now been exposed as a way not to be a bridge returning people to employment, but as a way to displace jobs, provide virtually free “slave labour” for employers. The scheme means if a person is out of work for a certain period of time, eg 6 months that you have to work 20 hrs a week for an extra €50 to stop you from losing the Dole? Primary reason for this is to get people off the live register and manipulate the employment statistics.

“The Department of Social Protection confirmed that 284 interns – roughly divided between the sexes – have worked in various departments since the back-to-work scheme began in 2011. – with 269 completing their internships.

Of those who finished placements, 69 progressed to employment with other companies, but just three were hired at their host departments.

Clearly where there is a recruitment moratorium in the public sector, such departments should be banned from participating in the scheme. Likewise private companies who abuse the scheme should be investigated if complaints and abuses are verified.

This blog has highlighted the “zero hour contract” as another means of manipulating employment statistics. For approx €30 euros employers can download a ready-made document whose highlights include, no normal or fixed working hours, agree to work at any place, termination with one weeks notice. trial period.

‘You may not do other work(even voluntary work) or engage in any other business’. Is this not a charter for slavery?

You may have problems if you see abuse and highlight this to say an ombudsman as you’e signed a contract preventing you from “bringing the company into disrepute/breach confidentiality”.

Of course manipulation goes deeper than manipulation of employment statistics. At the Banking Inquiry  John Fitzgerald said ESRI failed ‘to see the economic collapse’. This blog has continuously highlighted the failure of the ESRI to act as an objective and scientific provider of reliable statistics on Ireland’s economic performance.

ESRI continues to make absurd and over optimistic claims of economic performance for this economy with growth rates of 4-5% for the coming year in the face of water charges, property taxes and looming Grexit for eurozone.

The mea culpa of John Fitzgerald should require root and branch changes in ESRI or the creation of a more reliable agency for analysis and economic prediction. Either that or we can propose for each of the eurozone members a bailout of minimum €67bn so we can all avail of 5% growth rates and forget about austerity and recession.

In Business 4, Sunday Times, 15.02.15 Cormac Lucey includes a bar chart with Ireland’s debt to GDP ratio of 390% only slightly behind highest Japan at 400%. Significantly, Japan finances most of its debt from within Japan, itself, so let’s put Ireland top of the chart. On the other hand, large amounts of Irish debt are owned by multinationals, so Lucey rightly proposes GNP as a better denominator. This brings our debt to GNP up to 345%.

This is a huge drag on our economy never mind the externals such as growing deflation in the eurozone. Why are we not complaining like the Greeks? According to Lucey,

“In an interview with the newspaper DerSpiegel abouts Greece’s debt crisis, the former German Central Bank head Karl Otto Pohl said this “was about protecting German banks, but especially the French banks, from debt write-offs. On the day the rescue package was agreed, shares of French banks rose by up to 24%”.

The Irish government has been a significant supporter of Ireland’s debtors and is a direct supporter of NAMA. This ‘bad bank’ is now playing a significant role in manipulating the Irish property sector to the detriment of both debtors and lenders into the Irish economy”

http://en.wikipedia.org/wiki/National_Asset_Management_Agency

‘The National Asset Management Agency (NAMA; Irish: Gníomhaireacht Náisiúnta um Bhainistíocht Sócmhainní) is a body created by the government of Ireland in late 2009, in response to the Irish financial crisisand the deflation of the Irish property bubble.

NAMA functions as a bad bank, acquiring property development loans from Irish banks in return for government bonds, ostensibly with a view to improving the availability of credit in the Irish economy. The original book value of these loans was €77 billion (comprising €68bn for the original loans and €9bn rolled up interest) and the original asset values to which the loans related was €88bn with there being an average Loan To Value of 77% and the current market value is estimated at €47 billion.[1][2]‘ (See earlier blogs for critical analysis).

Vulture fund activity concerning NAMA with large tranches of commercial portfolio property segments laundered into sales abroad have raised eyebrows in the recent past and should be further investigated but secrecy surrounds such transactions.

“”Developers are being banished out of here in the name of the taxpayer. They are being forced and threatened into a state of silence but it is time to speak out. Nama will be proven to be the biggest mistake we ever made.” David Agar

http://quirkeproperty.blogspot.ie/2012/02/nama-treating-developers-like-dirt-says.html

“This weekend, Mr. Flynn described Nama as akin to North Korea: “They are an evil empire, a cancer on the economy and on the country and I believe that, honestly. They are answerable to nobody.

“They have sold assets and told people to sell assets without hearing them and those assets must be worth more now. So the question is: if they did it and acted unlawfully in doing that – are they going to be liable for damages?”

http://www.independent.ie/business/irish/nama-is-like-north-korea-developers-are-afraid-to-speak-30479421.html

In particular, NAMA has now been accused of property market manipulation:

http://www.independent.ie/irish-news/oflynn-lifts-the-lid-on-nama-with-letter-to-enda-30993080.html

‘”You are aware of the significant shortfall in housing supply in certain areas. This was money83anticipated by us and others and reflected in our business plan but rejected by Nama who considered themselves to have greater expertise in this area and refused to listen to those who have extensive experience of the market and planning for development,” Mr O’Flynn wrote.

Referring to the responsibility he believes the agency must bear for the current and chronic housing crisis in Dublin and elsewhere, he added: “Nama did not then nor does it now have the expertise or the skills necessary to operate as developers as is evident from the housing shortage which has arisen when Nama was the dominant player in the property market.”

Commenting on Nama’s future direction and indications that the agency will become more directly involved in property development, Mr O’Flynn said: “I note with considerable concern some comments made in relation to the future direction of Nama and wonder if anyone has stopped to consider the impact on the property industry generally and the Competition Law issues which would arise from such a development.’

In order to inflate current house price values and preserve the capital ratios of banks, NAMA is now exposed to charges of denying a generation of young people the right to own property.

Truly the financial paper merchants have succeeded in annexing the democratic freedoms and rights that should be part of our capitalist economy and created in its place an extreme socialist dictatorship  of financial manipulation akin to the worst excesses of the USSR. We should not be surprised at signs met on the road to slavery such as “Zero Hour Contracts” in our new socialist state for the banks.

 https://inquiries.oireachtas.ie/banking/

till again

 

 

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One Response to “Market Manipulation”

  1. Paul Hanlon said

    How about this for market manipulation:

    http://www.zerohedge.com/news/2014-06-15/cluster-central-banks-have-secretly-invested-29-trillion-market

    This is most likely why we see the Dow and the S&P500 constantly making new record highs. There’s also this:

    http://dprogram.net/2014/10/31/fed-plunge-protection-team-desperately-trying-prevent-stock-market-crash-mid-term-elections/

    The FED directly getting involved in ensuring the markets don’t crash. While it might seem like a good idea to provide an orderly market, we will never have real reform while this is going on. Worse, as is the nature of these things, it will take more and more money to prop up the markets the further along in time that this goes on.

    Just like the banks that are too big to fail, when the markets are propped up like this, it ends up with people believing that there is only one way they can go – up. And it does, until it doesn’t anymore and then no amount of money can prop it up.

    And if that doesn’t scare the the bejesus out of you, there’s this:

    http://www.bis.org/statistics/dt1920a.pdf

    This is the amount of OTC derivatives currently in play, over $700trillion or about nine times the yearly product of the whole world. On the right hand side it shows the gross market value, or what would be outstanding if all the derivatives were balanced out between bought and sold.

    However this only applies in an orderly market. If there was some shock to the system and say, the USA found themselves having to raise interest rates to two or three percent almost overnight, one side of the trading equation would find themselves massively more out of pocket than that figure suggests. You’ve only got to look at what happened to the property market in Ireland to see the sort of turmoil that could ensue.

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