It was all a big con...a reason to pump up the volatility (any reason will do) to allow those who exited previously in reparation for the "sting" to claim their prize.
Most of all however, it was designed as a margin "reset" to flush the problem factor off the books...a kind of credit purge by necessity to reduce their credit book value due to the all-new credit squeeze environment they suddenly found themselves in thanks to sub-prime.
Many would have been completely wiped out via subsequent margin calls and various other types of unwinding of credit based leverage during the retrace...especially on that black Thursday (16th Aug), when the flush more or less reached it's climax, on the back of an XAO sticking the knife in and twisting via a fall of 300 odd and recovery of 250 of them once the capitulation of enough margin accounts had been achieved.
All in just a couple of hours!
This day in particular, but I guess also the entire event, has been one of the most disgusting scams I think I have ever seen in the markets, if not for the severity and ruthlessness of it all, then for the unprecedented global coordination that was painfully obvious.
Exchange "maintenance"...lol...online broker crashes, power outages, internet black-outs, missing index data...the list goes on.
These are not mere coincidences...and frankly, the level of coordinated control here has become disturbing.
These sort of "coincidences" happen on most corrective purges...but not always...with the underlying movement of stock from the big end of town the apparent ruling factor.
I had 3 short power blackouts, 2 power surges, two out of three internet lines drop out...and of course 2 separate online trading platforms fail on that ugly Thursday.
It did not happen in the six months prior...and it has not happened since.
Coincidence?
Sub-prime was real (still is)...but it was never significant enough to cause the world economy to fail...it was however an excellent "story" on which to peddle a scam.
lol...all you rampers on HC should take notes!
Anyway...as I expected, the bad economic news has simply gone away...as if it never happened or is simply not an issue any more...which of course makes perfect sense because it never was an issue in the first place.
Ask yourselves...during this fiasco, how many switched all of their super into cash; how many converted their shares to cash; how many sold out of decent stocks for fear...and; and how many saw their margin accounts virtually wiped out?
Now...how many of these people are wondering how the hell they will ever get back in at the prices they sold? lol...they will not...but you will probably hear them say they are "happy" because they opted for safety and have lost nothing, even if forced to get back in higher.
Bzzzt...wrong...there was no safety here because there was nothing to hide from in the first place, just reactive nonsense at the behest of the spin-doctors...the very same spin doctors who next time, will entice everyone to buy exactly when they should be selling!
The falls were real, but the reasons were not....and is typically the case in such circumstances, those who sell on the back of such "activity" will not take advantage of the lower prices on offer and will mostly re-enter after all stocks have recovered to previous prices, thereby cementing the transfer of their previous wealth to the "players".
This is the whole point of my distain for this process...if people behave like sheep then that is how they will be treated...lol...on the way to being fleeced.
So here we are, the market is more or less back where it was...interestingly however, if all these people have sold in this time...converted to cash and "safety" as it were...who the hell did the buying to bring us back up?
lol...something tells me they will probably be the same ones selling to the sheep on the next con-job.
Cheers!
ASX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
(20min delay)