Sunday, October 12, 2008

Conspiracy Theories--Economic Terrorism?

It seems like some economists may have a theory that the economic crisis and the continuing world-wide stock market decline may be a deliberate act of "economic terrorism." In a FOXNews interview, Governor Huckabee discussed the "signs" that the market is being driven down deliberately by people (or a person) who use electronic trading to deliberately sell a large number of shares at the end of the selling day, driving down prices. The large number of shares for sale drives down prices, which creates panic. Because it's late in the trading-day, the market cannot correct itself, the media picks up on the late-day panic and reports it to the world, and the panic infects other markets as they open. Governor Huckabee says that he doesn't know if this theory is correct or not, but that it was "advanced" to him by someone in the "capital markets business." BUT, he doesn't identify who the "source" of this information is. Instead, he looks at the market activity for the last 12-days and the extremely heavy activity (9 times the norm) in the half-hour before trading ends. He does want an investigation to see if there really is someone manipulating the market. Check out the video....

h/t HotAir

1 comment:

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