Boo hoo hoo! Ready to face reality yet or still living in denial? If you don't like it, DON'T PARTICIPATE! Market "regulation" has always been just smoke & mirrors to get the people to drop their guard and trust the same entities which are trying to get their money.
The guys a moron. Don't give him a second thought. What kind of creedance can you give someone who says things are crooked, so get over it? Be thankful there are the few people out there who are honest are winning the battle.
This article makes some rather naive assumptions, and doesn't even mention the possibility of large institutions buying PUTS to protect their long stock positions. Everyone on the Street was well aware that Bear was the biggest firm on the Street that cleared the hedge-fund community. With a few mortgage related funds like Carlyle going under to the tune of $17 BILLION, it wasn't too far fetched to see how this would effect the likes of Bear. And to assume that people don't make speculative "bets" via options in large size is highly naive. Bear was swirling the toilet and the RUN on the BANK was in full tilt once Carlyle went under. Feel free to check the timing of these two events and I think you'll see some decent correlation.
Have to agree, the carlyle connection is one few have made (no insiders in that organization). What do you think of Hank Paulson suggesting $2.00 as the buy out price. Good thing no one else in the family is a trader, that might be morally hazardous. Tim Geitner is another one who is not mentioned enough, truly a gatekeeper. I wonder if they could loan me a few billion, I promise to pay it back.
I would agree with you. Obviously not in the same financial bracket but every month a few days before options expiry I buy calls and puts far outside the money in stocks like aapl, rimm and some bio's like dndn. cost a few thousand dollars but overall the out come is I am still up. Never mind the inside information that is available to friends. We have to remember the top players in these hedgefunds make millions to several hundred million a year. What's a few percent bet, especially if you think you are right. It's one perspective. w
I think the author found credible sources who make the case that no one in their right mind would do such a thing without knowing. I think an interesting thought is, why was this person or firm, obviously sophisticated, not afraid to show his hand? after all, there have been insider trading convictions recently. He obviously thought he bought the Judge and Jury. I think they took it one step too far, and incurred the rath of Washington. It'll all be out soon. That 'Bear Trap' book will tell a lot, and I think it'll damn CNBC. Why else did Fox get the scoop?
If you're managing BILLIONS in assets, what is 1.7 million???? I don't get it. If it was that bizarre, the underwriters shouldn't have written the damn options. Now they cry.
This is all sour grapes. My prediction is we will never even know who bought the puts, never mind why they bought them. It's nobody's business.
I take that back. That really pisses me off now that I think about it. They know who did it. They can decide if it was in fact a wolf or not. If so, throw them in the can and pay back to underwriters.