MYSTERY SPECULATOR BETS ON DISASTER

Who’s sure enough to gamble $4.5 billion on Stock Market taking 40% nosedive?

By Pat Shannan

A huge downside purchase of “put” options by an unknown investor or conglomerate in Europe has both investors and NWO watchers abuzz worldwide. Someone has placed a $4.5 billion bet that within 30 days the European stock market will take at least a 33% nosedive. Such an event would be tantamount to the market crash of 1929.

The two sales are being referred to by market traders as “bin Laden trades” because only an event on the scale of the 9-11 “terrorist” attacks could make these short-sell “put” options valuable.( A “put” option is a bet that a stock will go down. A “call” option is a bet it will go up.)

There are 65,000 pending contracts at $750 in the Standard and Poor Index. This controls 6.5 million shares at $750 or $4.875 billion. The entity or individual offering these sales can make money only if the market drops 30%-50% within 30 days. If the market does not drop, the entity or individual involved stands to lose about $1 billion just for engaging in these contracts. On the other hand, if the prediction is correct, the reward could be over $2 billion.

“The fact that the purchase was made in the European market is insignificant,” said one speculator with decades of experience, “because it could have been done by bank transfer from anywhere in the world. What concerns us is what kind of inside information could this group or individual have. It would have to have far deeper roots than just `insider trader’ knowledge.”

Two theories are being discussed widely within the stock and options markets regarding this enormous and very unusual activity:

A massive terrorist attack is going to take place before September. 21 which will torpedo the markets along with whatever other target is hit or, China, reeling over losing $10 billion in bad loans to the sub-prime mortgage collapse presently taking place, is going to dump U.S. currency in an attempt to topple all of capitalism with a communist financial revolution. Either situation could be catastrophic to the financial world.

The 9-11 attacks were foreshadowed by “put” options placed onAmerican and UnitedAirlines, as reported in the immediate aftermath. According to CBS News, the put ratio for United Airlines was 25 times above normal on
September 6.

In the week before September 11, “put” options in United and American Airlines went through a furious and unprecedented spasm of investment. Most of the investments in these put options originated in Germany through the Deutsche Bank. Deutsche Bank had earlier acquired Banker’s Trust, an investment banking firm whose vice chairman in charge of “private client relations” in the late 1990s was A. B. “Buzzy” Krongard.

In March of 2001, Krongard was appointed executive director of the CIA. On September 6-7, when there was no significant news or stock price movement involving United, the Chicago exchange handled 4,744 “put” options for UAL stock, compared with just 396 call options—essentially bets that the price will rise.When the market re-opened on Sept. 17, 2001, American and United, the only two airlines with hijacked planes, saw their stocks plummet by around 40%.

What becomes particularly relevant in the lead-up to 9-11 is the August CIA briefing of President Bush concerning the potential threat of attacks by bin Laden using hijacked planes on certain sites, such as the Pentagon and World Trade Center, and the fact that the CIA had bugging equipment on bin Laden messages and international banking operations. Although apparently no one has claimed the money from the “put” options, questions remain about Krongard and the CIA’s involvement.

“Put” options on Morgan Stanley and Merrill Lynch, two of the World Trade Center’s most prominent occupants, also spiked in the days before 9-11. The 9-11 Investigation Committee made no attempt to pursue this highly sensitive matter. The SEC never made public who these speculators were.

(Issue #37, September 10, 2007)