- Well, Folks...
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- Martha was found guilty of insider trading for acting
on negative information that her broker gave her as a heads up on a stock
she was holding before the public knew about it. The money made by her
for acting on this information was a few thousand dollars.
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- So, I guess Insider Trading is an issue!
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- Let's see here, two other potential examples of insider
trading and what they would yield, I will give below. I will start with
a normal example of which there are many, and the second example will be
the biggest example of insider trading that I have ever seen.
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- THE TWO EXAMPLES ARE AS FOLLOWS:
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- EXAMPLE # 1.
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- Years ago, the Soviet Union had destabilized and Gorbachev
now was willing to follow the American way of democracy. That year Russia's
grain crop had failed and shortages abound. The Senate introduces a bill
which if approved would provide Russia with 30 billion dollars to help
them out on their transition. The bill would be voted on in five days after
introduction. I note that in the USA, grain prices were at their lowest
prices in years do to a bumper crop. So, an obvious deduction would be,
if the 30 billion was approved, Russia would use a substantial portion
of that money to buy grain from the USA which would skyrocket grain prices
from contract lows through contract highs in a matter of days.
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- Hmmm, knowing if this bill would be approved would sure
be a great insider trading knowledge. To qualify this, wheat on the futures
market was at $2.65 a bushel. Short term contract highs were about $3.15
a bushel, and contract highs over the long term of a year or two was $5.35
a bushel. On a wheat futures contract [5000 bushels], the margin to hold
a contract was $1000. Each penny move was equal to $50 and a $1 move was
equal to $5000. If the Senate approved this 30 billion dollar assist to
Russia, the grain bought by Russia with this money would push wheat, in
so many words, overnight to break the $5.35 a bushel price, or a profit
on one (1) wheat futures contract bought at $2.65 a bushel and then sold
at say $5.65 a bushel of $15,000 on $1000 used. Now if call options were
bought [out of the money at $3.20] when wheat was at $2.65, they would
be dirt cheap about $28 to $30 per option on one (1) contract. When, and
if wheat broke your $3.20 strike price, the option would now equal the
same value of money gained as a futures contract, so on the option, from
$3.20 liquidated at $5.65 a bushel would yield $12,250 on $30 used.
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- So let's see; On $100,000 completely used with future
contracts or with call options, within the specifications of the example
above, the yield would be $1,500,000.00 with futures and with call options
$41,662,500.00 Additionally, I will note that soybeans would respond the
same with wheat...
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- So what happened?????
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- Five days after introduction, they approved the 30 billion
dollars to Russia and Russia immediately bought 8 billion dollars of grains
from the USA. Grain prices went from contract lows through contract highs
in about 3 to 5 weeks.
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- Now, I myself, being familiar with futures and options
as a prior CTA (Commodity Trading Advisor), when I heard the proposition
on the news that they were going to vote on the 30 billion for Russia,
knew in most probabilities it would be immediately approved and I knew
that if approved, Russia would buy large quantities of US Grain, so I that
day bought a few call options and made a killing on those call options.
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- Was I guilty of inside trading? No, I was not. I acted
on information when it became public.
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- Who would be guilty of inside trading on this scenario?
Well, let's say if a group of Senators and other government officials,
along with their business associates, discussed the 30 billion, agreed
to agree on its approval before it was made public, and then took positions
in the futures and options, before or at the time they announced the proposed
30 billion dollar payment to Russia, they most definitely would be guilty
of insider trading.
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- Do I think many from within government did this along
with their cronies that they advised to do the same? Yes, I do. Any indictments?
No, none.
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- Are the records still available to spot who in most probabilities
was inside trading? Yes, they are.
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- Bill and Hillary maybe? The Bush family maybe? Dick Chaney's
Corporate interests maybe? Would be interesting to find out don't you think?
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- EXAMPLE # 2.
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- The biggest example of insider trading that ever took
place ever occurred on the date of September 11th 2001 and the effects
of which continue until today. Those that agreed to agree in advance of
that date and acted within the broad spectrum of the international markets,
yielded trillions of dollars and as an added perk, accomplished the lock-down
control of the United States as well as a leap forward towards the financial,
political, social, and forceful conquest of the rest of the world.
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- Are the records of the international transactions still
available? Yes, they are.
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- Will they be made public? I will let you answer that
one.
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- Have a good day!
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- Yours Truly,
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- Walter J. Burien, Jr. P. O. Box 2112 Saint Johns, Arizona
85936
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- Web Site: <http://CAFR1.com>http://CAFR1.com
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- PS: I wonder who Martha was helping or what liability
she was exposing to make her a target for such a small infraction of insider
trading, or has this Martha event been just a show to entertain the public?
But then why would they want to entertain the public? What could they ever
accomplish by doing that? Maybe conquest of the planet? Who knows?
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