May
09,2014
October 19,
1987 – 27 years ago the very first take down of the banking cabal was attempted
by the Good Guys. Newly elected Fed Chairman, Alan Greenspan and his computer
programs sent the market into a free fall spin. His aim was to completely
destroy all financial markets flushing out all the “bad players” and starting
fresh with a NEW MONETARY SYSTEM based on physical gold in the United States.
Here’s a good
summary by Art Cashin posted on ZeroHedge.com of what the mainstream media
reported…
“Every ten
minutes or so, someone would rush up to Phelan and slip him a note or whisper
in his ear. It was evident that things were deteriorating. As I headed for the
floor, I went past Phelan’s table, put my right arm across my chest and said —
“Nos Morituri Te Salutamus Esse”. It was the gladiator’s salute to the Emperor
— “We, who are about to die, salute you”. Phelan nodded without a smile.”
“Meanwhile,
back on the floor, the situation felt more unreal. Orders flowed in faster and
faster and the tape ran later and later. (The tape was linear and the human eye
can only recognize a certain number of symbols per second, 900 I think. To run
faster than that would make the tape an unreadable blur. Traders can trade
faster than the maximum reading speed — so the tape ran late.) One broker said
it was like a bizarre dream sequence — nothing seemed real.”
“In late
morning there were signs that the markets might begin to stabilize. Then the
newly appointed Chairman of the SEC, David Ruder, was intercepted by reporters
leaving a meeting at the Mayflower Hotel in Washington. Whatever they asked and whatever he said,
it somehow was reported that the markets might have to be halted. Later, he
would swear it was a typo but you can’t un-ring a bell. The fear of a halt sent
buyers scurrying away. Stocks went into virtual freefall.”
“NYSE Chairman
Phelan reached out to the recently appointed head of the Fed, Alan Greenspan.
Unfortunately, Greenspan was on a plane. Desperate, Phelan called the President
of the New York Fed, Gerry Corrigan. He sensed the danger immediately and began
calling the banks to reopen the credit lines. They were reluctant but Corrigan ultimately
cajoled them. The credit lines were reopened and the halted stocks were
reopened. Best of all, the market started to rally and closed higher on the
day.”
“It was an
incredible time and the financial system was within hours (and a few phone
calls) of an absolute collapse. It was a time I’ll never forget.”
So that was the
take of an “inside old timer” on what went down that fateful morning. But the
reality of HOW IT HAPPENED was much more telling. Like every market calamity
since the early 1970s’…it was caused by COMPUTERS!
Here’s another
take on what happened…
“Twenty years
ago, automated trading systems contributed to investor panic and a historic
drop in the stock market. Historians still draw lessons about market volatility
and regulatory oversight from the Black Monday crash.”
“Back in the
summer of 1987, a few months before Black Monday, something had been bothering
Rep. Edward Markey (D-Massachusetts). A robust stock market had been slowing
down, and Markey says he worried about the role of program trading–where
computers automatically buy and sell stocks based on algorithms set by stock trading companies. He was concerned about the
possibility that stocks, options and related futures markets would become
volatile. If the market experienced rapid sell-offs, for instance, driving the
price of stocks down to a certain level, the computers would then be programmed
to sell very quickly without consideration to the human panic or hysteria of a
tough day on Wall Street.”
“As chairman
of a House subcommittee on telecommunications and finance, Markey called a
hearing to look at program trading in July 1987. “While many of the industry
witnesses argued that there was nothing to worry about, I was not convinced
they were right,” he remembers.”
“After the
market dropped 91 points on Oct. 6, Markey wrote to officials at the Securities
and Exchange Commission (SEC), asking them to research what happened. Twelve
days later, he watched it unfold on his television. “Watching the crash take
place on CNN was a gut-wrenching experience,” he says. “My worst fears were
realized.”
“Although
economists say that program trading wasn’t the only factor at work on Black
Monday–dried up liquidity, a lack of visibility into market conditions and
irrational panic on the part of investors also played key roles–most
acknowledge it was a factor. “We haven’t agreed whether or not program trading was
the primary culprit, but there’s been consensus it played a role,” says Paolo
Pasquariello, assistant professor of finance at the University of Michigan’s
Stephen M. Ross School of Business.”
Those who have
followed the Road to Roota Theory know that Roota or “RootA” comes directly
from the early computer rigging programs written by Alan Greenspan and his
friend John Kemeny designed to control the markets.
It is not a
coincidence that Greenspan was placed as the head of the Federal Reserve bank
the summer before the crash of 1987. Greenspan had planned to crash the
monetary system to destroy the Bad Guys and return us to a Gold Standard.
Unfortunately, the Greenspan plan backfired in 1987 as it was not large enough
and all-encompassing enough to crash everything. The banksters pulled out all
the stops and succeeded in maintaining control.
Over the ensuing
years Greenspan was relentless is creating a bigger and bigger monument to
phoney money keeping interest rates as low as possible and fighting to the
death for NO REGULATION on the newly created derivative markets. Basically,
Greenspan wanted to give the banksters enough rope to hang themselves.
By 2007/2008 the
monument to fraudulent monetary instruments was so great that toppling the
system was easy. A few keystrokes here and a few keystrokes there sent the
system into a tailspin. He had won…the banksters were all insolvent.
So why didn’t it
all come down as he had planned?
WE THE PEOPLE
WERE NOT READY!
We panicked. We
didn’t know what was going on. We let the banking cabal, lead by Hank Paulson,
hold a gun to our heads and we gave them more money and more time. Not much
more…but enough such that we could EDUCATE OURSELVES as to what was happening
so we would be READY when the next crash came.
That has been
the reason for all the delays. Education of the masses as to what our problems
are so we will be ready to face the Banksters head on when the next crisis
hits. And that “next crisis” is just around the bend in the Road.
Buckle up
quickly.
May the Road you
choose be the Right Road.
