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Paslode
03-01-2011, 07:42
Financial subversion, I would agree with that.

But I kind of believe the ship was taking on water long before Hank Paulson claimed tanks would be rolling down the street and a lot of entities (like Goldman Sachs) within our borders were betting on it, and maybe even pushing us to the edge.

I would wager my bet on collusion of inside and outside forces.

Evidence outlined in a Pentagon contractor report suggests that financial subversion carried out by unknown parties, such as terrorists or hostile nations, contributed to the 2008 economic crash by covertly using vulnerabilities in the U.S. financial system.

The unclassified 2009 report “Economic Warfare: Risks and Responses” by financial analyst Kevin D. Freeman, a copy of which was obtained by The Washington Times, states that “a three-phased attack was planned and is in the process against the United States economy.”

While economic analysts and a final report from the federal government's Financial Crisis Inquiry Commission blame the crash on such economic factors as high-risk mortgage lending practices and poor federal regulation and supervision, the Pentagon contractor adds a new element: “outside forces,” a factor the commission did not examine.

“There is sufficient justification to question whether outside forces triggered, capitalized upon or magnified the economic difficulties of 2008,” the report says, explaining that those domestic economic factors would have caused a “normal downturn” but not the “near collapse” of the global economic system that took place.

Suspects include financial enemies in Middle Eastern states, Islamic terrorists, hostile members of the Chinese military, or government and organized crime groups in Russia, Venezuela or Iran. Chinese military officials publicly have suggested using economic warfare against the U.S.
Michael G. Vickers, assistant secretary of defense for special operations, said the Pentagon was not the appropriate agency to assess economic warfare and financial terrorism risks. (Associated Press)Michael G. Vickers, assistant secretary of defense for special operations, said the Pentagon was not the appropriate agency to assess economic warfare and financial terrorism risks. (Associated Press)

In an interview with The Times, Mr. Freeman said his report provided enough theoretical evidence for an economic warfare attack that further forensic study was warranted.

“The new battle space is the economy,” he said. “We spend hundreds of billions of dollars on weapons systems each year. But a relatively small amount of money focused against our financial markets through leveraged derivatives or cyber efforts can result in trillions of dollars in losses. And, the perpetrators can remain undiscovered.

“This is the equivalent of box cutters on an airplane,” Mr. Freeman said.

Paul Bracken, a Yale University professor who has studied economic warfare, said he saw “no convincing evidence that ‘outside forces’ colluded to bring about the 2008 crisis.”

“There were outside players in the market” for unregulated credit default swaps, Mr. Bracken said in an e-mail. “Foreign banks and hedge funds play the shorts all the time too. But suggestions of an organized targeted attack for strategic reasons don’t seem to me to be plausible.”



7 more pages can be found here------->http://www.washingtontimes.com/news/2011/feb/28/financial-terrorism-suspected-in-08-economic-crash/

Pete
03-01-2011, 07:48
If you make $10 off a hundred shares that you own it ain't much.

If you can make $5 a share from jiggling a few hundred million shares you own - now you're making some money.

Was a plum ripe for the picking?

Richard
03-01-2011, 07:49
"Financial Terrorism" - is that what they're calling 'greed' now.

Richard :munchin

Dusty
03-01-2011, 07:52
"Financial Terrorism" - is that what they're calling 'greed' now.

Richard :munchin

Please elaborate, Richard-I'm not following you on this one...:munchin

Paslode
03-01-2011, 08:29
From page 3:

The first phase of the economic attack, the report said, was the escalation of oil prices by speculators from 2007 to mid-2008 that coincided with the housing finance crisis.

In the second phase, the stock market collapsed by what the report called a “bear raid” from unidentified sources on Bear Stearns, Lehman Brothers and other Wall Street firms.


And this by Matt Taibbi in a April 5, 2010 Rolling Stone article......Hat Tip to Nmap;)

http://www.rollingstone.com/politics/news/the-great-american-bubble-machine-20100405?page=1

"Financial Terrorism" - is that what they're calling 'greed' now.

Richard :munchin

Good point Sir and I believe in this case the answer is likely Yes. And that is what Matt Taibbi and others elude to....or at least that is what I have read into it..

Dozer523
03-01-2011, 08:41
I am a huge fan of this author, Malcolm Gladwell. I'm currently reading his book What the Dog Saw and this is one of the chapters.

Other books include: The Tipping Point, Blink and Outliers.

http://www.gladwell.com/2002/2002_04_29_a_blowingup.htm

dennisw
03-01-2011, 09:42
I am a huge fan of this author, Malcolm Gladwell. I'm currently reading his book What the Dog Saw and this is one of the chapters.

Other books include: The Tipping Point, Blink and Outliers.

http://www.gladwell.com/2002/2002_04_29_a_blowingup.htm

Great article. It puts many things in perspective for me. It also leads to certain conclusions. If the market is truly unpredictable, then the only way to invest with certainty is to one, have insider information, or two, control the uncontrollable. If you can create your own "black swan" then you're ahead of the game. Things like trying to corner the silver market or push the government in a certain direction which you know will lead to a crash, after of course betting on the crash.

Thanks for posting it. I now plan on reading some of Gladwell's books.

Richard
03-01-2011, 09:59
Wonder how all this will go now that the Deutsche Borse and NYSE Euronext inked a deal to create the world’s largest trading powerhouse. :confused:

Richard :munchin

Texas_Shooter
03-01-2011, 13:39
Wonder how all this will go now that the Deutsche Borse and NYSE Euronext inked a deal to create the world’s largest trading powerhouse.


A juicy target for the economic terrorist.

GratefulCitizen
03-01-2011, 16:17
I am a huge fan of this author, Malcolm Gladwell. I'm currently reading his book What the Dog Saw and this is one of the chapters.

Other books include: The Tipping Point, Blink and Outliers.

http://www.gladwell.com/2002/2002_04_29_a_blowingup.htm

I'm a fan of Gladwell, too.
Skimmed the article.

There was an interesting point brought up with the idea of risk:
Risking a high probability of losing a little versus a low probability of winning much.

Another way of describing this idea:
You don't need to protect yourself against failures. You only need to protect yourself against critical failures.

The Reaper
03-01-2011, 17:20
I'm a fan of Gladwell, too.
Skimmed the article.

There was an interesting point brought up with the idea of risk:
Risking a high probability of losing a little versus a low probability of winning much.

Another way of describing this idea:
You don't need to protect yourself against failures. You only need to protect yourself against critical failures.

Standard business in military planning.

You chart likelihood of the event against the seriousness of the consequences.

Nuclear war is unlikely, but you have to be prepared for it given the potential consequences.

Lesser engagements may not have critical consequences, but you are likely to experience a lot more of them.

TR

Bill Harsey
03-30-2011, 07:46
Not a fast read but interesting.

Kevin D. Freeman makes the case something serious may be up.
Here: http://www.scribd.com/doc/49755779/Economic-Warfare-Risks-and-Responses-by-Kevin-D-Freeman

Edited to add, for those that don't read here is the interview with Kevin D. Freeman on KPNW Radio hosted by Bill Lunden
link: http://www.kpnw.com/pages/wuc_audio_archive

scroll down to "archives", it s the first one.

Edited again to add,
This report was originally published under some contractual agreement the DoD Irregular Warfare Support Program.
It's on the 'net, seems like open source to me.