The major media say the chaos on Wall Street was the result of a "trader
error, possibly a typo," as the Washington Post put it. Some reports
claim the culprit was a "fat finger" on a computer somewhere that
pressed the wrong key. But Zubi Diamond, author of the Wizards of Wall
Street, says these claims are all lies. "What happened in the market on
Thursday is a typical example of pure market manipulation" by
unregulated hedge fund short sellers.
His book, whose subtitle refers to the scam that elected Barack Obama,
warns that the same hedge fund short sellers were behind the financial
crash of 2008 that paved the way for Obama's election to the presidency.
Diamond says the historic market plunge on Thursday was "due to
computerized hedge fund short selling because there is no protection for
the invested capital in the equity markets. There is no uptick rule, no
circuit breakers and no trading curbs. Our market is primed for
manipulation."
Diamond is referring to financial regulations, which have been repealed,
designed to prevent market manipulation.
Diamond has been adamant in his view that the financial reform bill
being pushed by Obama and liberal Democrats on Capitol Hill will do
nothing to solve this problem and regulate the hedge fund short sellers.
"No one will come on TV to tell the truth," he complained. Instead, he
says representatives and apologists for the hedge fund short sellers,
who operate as the Managed Funds Association (MFA), "go on TV and
provide false explanations of what happened."
Diamond says these false explanations include claims of trader error and
computerized glitches. …
Manipulation,
Not Error, Behind Market Plunge-5/8