Wall Street: Was this terrorism?

I’ve waited 12 hours to write this, because I know I’ll catch flak on some of it. But, the more controversial part of my opinion is starting to get some public play, so I’m plowing through my doubt and putting it out there.

Wall Street had a crisis in the last ten days that culminated in a huge set of government interventions. Like the UK, the SEC suspended short selling on 799 financial securities. Money Market accounts under the 2A7 rules (dollar in, dollar out) will be guaranteed. (I haven’t found a maximum dollar amount yet, but here are the FDIC rules.) Finally, the government has set up to buy the bad paper from the mortgage crisis.

The response has been immediate and bipartisan. I think we’ll find there’s a reason. In addition to the mortgage situation coming to final blows, I think there’s a chance we just experienced financial terrorism. Yes, I’m asserting that someone deliberately tried to tank America’s financial infrastructure.

AIG had exposure, but it had written the books down to handle it. Short selling pounded the company. The bulk of the pressure peaked on 9/11/08. There were other financial companies taking the hit, too.

Also, the trading floor is baffled as to why the SEC chose to limit short selling on these financial companies instead of instigating the uptick rule again. Intelligence as to terrorism would explain such a decision.

There’s a lot we don’t know yet. The dust needs to settle on this before we cry foul on the government interventions. It will be pathetic if either candidate makes more of this than they should without knowing every detail. Remember, Al Qaeda promised to take us down from the inside. This last week would certainly fit that description.

By the way, I’m not the only loony proposing this possibility. Dad 29 mentioned it today by posting from The Big Picture. This market guru says the bulk of the shorts came through the London and Dubai markets. Also, Jim Cramer from TheStreet.com wonders what’s up, too.

As I said earlier, I’m setting back and waiting. This week the strategy paid off well.

Comments

  1. I’ve heard report that a Russian official was here seeking assurances that the upheaval wasn’t an attack by US on THEM. David Brooks, this morning, says that everbody is getting it wrong. It will be interesting to see what falls out.

  2. I was thinking the Soros types were doing some serious manipulations. šŸ˜• Something just isn’t right in all this….I mean other than the fact the Dems continued to ignore the warnings and the Repubs let ’em.

  3. I wrote an article on this exact theory on 9-17-08 on the OTF. My screen name is: MaryKay1965. Here is the link: http://www.onlinetradersforum.com/showthread.php?t=47810 I emailed my “theory” and a “live link” to Jim Cramer after I wrote the thread and that idiot takes my “theory” and runs with it the very next day on CNBC. I even included a copy of the email I sent to Jim Cramer with the time/date stamp in tact. You can also check out my website: http://www.BuyingOnDips.com

  4. Iā€™m not the only loony proposing this possibility

    So you make ME into a loony?

  5. Well if the shoe fits…

    Actually, this is getting some play again. I saw Huckabee interviewed this morning on Fox and he said the same thing.

  6. Jim Cramer is the loony!

Trackbacks

  1. […] Kilkenny raises the question of financial terrorism. It didn’t originate with her; see her post for more links. I’m still not so sure, but […]