Quotes on Manipulation

“Observation # 1: The greatest number of losing traders is found in the short-term and intraday ranks.  This has less to do with the time frame and more to do with the fact that many of these traders lack proper preparation and a well thought-out game plan.  By trading in the time frame most unforgiving of even minute error and most vulnerable to floor manipulation and general costs of trading, losses due to lack of knowledge and lack of preparedness are exponential.  These traders are often undercapitalized as well.  Winning traders often trade in mid-term to long-term time frames.  Often they carry greater initial levels of equity as well.” Walter Downs

“The ability of banks to issue claims far in excess of their reserve position is essentially regulated counterfeiting when those claims have little or no chance of being satisfied, and it is an inherently cyclical and destabilizing process. The Fed, as US banks’ chief regulator, has not only condoned this imprudent, unsustainable (and Constitutionally-dubious) activity, it has encouraged and abetted it.”  Paul Brodsky and Lee Quaintance

“He did not publish or spread any information that was false.  Instead he praised the companies he had invested in to the skies, including the spreading of rumors.  Does his action fall into information-based manipulation because of this?  The answer is: partly.  From the total gain of USD 800,000 he had to repay USD 285,000, so just over a third of the total gain.”  Mark Schindler   

“Runs occur when a group of traders create activity or rumors in order to drive the price of a security up.”  Unknown

“If he claims to be the first, then his behavior definitely becomes illegal, since he knows that the rumor is not true.  Then his action would be declared as the spreading of false information and therefore illegal”  Mark Schindler

“If, though, he claims to be somewhere along the spreading process, he can always refer to an unknown, reliable, credible sourse that he had heard the rumor from.  The transition of position in the line of rumor spreading allows the trader to shift the responsibility and the rumor’s credibility to the unknown source and to take him out of the line of legal fire”  Mark Schindler

“Ramping is an actions designed to artificially raise the market price of listed securities to give the impression of voluminous trading, in order to make a quick profit.”  Unknown

“A wash sale is the selling and repurchasing of the same or substantially the same security for the purpose of generating activity to increase the price.”  Unknown 

“The Fed will succeed because it has the power to effectively create infinite amounts of money and credit without any formal justification.”  Paul Brodskyand Lee Quaintance

“A bear raid is an attempt to push the price of a stock down by heavy selling or short selling.”  Unknown 

 “The basic tool for the manipulation of reality is the manipulation of words. If you can control the meaning of words, you can control the people who must use the words.”  Philip Dick 

“Should the Fed conclude that the effectiveness of its sizable expansion of bank reserves to date will be muted by a stagnant or contracting money multiplier (i.e., it’s ‘pushing on a string’), it could turn to the next page in its playbook and monetize assets directly to prop up their prices. (It does this simply by purchasing US Treasury securities, MBS, corporate credit, etc. outright from primary dealers and electronic proceeds are created `out of thin air` and are credited to the dealers’ bank accounts.).”  Paul Brodskyand Lee Quaintance

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