Former President Franlin Delano Roosevelt once said, In politics nothing happens by accident. If it happens, you can bet it was planned that way. So when the New York Stock Exchange halts trading on July 8 for what they call a ‘gltch’, but trading in certain areas like the Bond market continue without delay, one has to wonder if the suspension was fixed, or truly an ‘act of nature’.
Yet what makes this market halt very suspect is the number of other events that took place in both the markets, and with market publications on the same day. In China overnight, their stock markets were halted and a new rule was implemented stating that large Chinese shareholders could not sell their positions for the next six months. And over in the U.S., two online financial publications, Zerohedge and the Wall Street Journal, were down for between 1 and 3 hours, and an internet issue affected United Airlines causing flight delays and cancellations all across the country.
Coincidence? Cyber hack? Or… planned domestic take down?
The White House said on Wednesday there is no indication of malicious actors involved in the technical difficulties experienced at the New York Stock Exchange.
White House spokesman Josh Earnest told reporters that the stock exchange has an effective information-sharing relationship with the federal government.
Earnest said President Barack Obama will continue to be updated on the situation. – Reuters
Yet with all the redundancy and emergency backup systems built into the NYSE, one has to wonder what the true reason behind the market halt actually is. The White House was quick to announce this was not a ‘cyber attack’, yet using a software update as an excuse does not explain why the Wall Street Journal and Zerohedge both went down for extended periods of time prior to the NYSE shutting down.
Before the halt, all market indices were down, including the DOW which was a negative 192 at the time of the suspension. And while speculation is still rampant as to the reason for the halt, one possibility being thrown out is that the large Chinese investors and hedge funds were trying to dump their U.S. based holdings to acquire some liquidity and protect their positions in the Far East markets since they are now unable to sell stocks in those markets.
With so many areas of the global financial system starting to crack, and the Fed announcing just a few minutes ago that they will not raise rates this month because of declining economic indicators, is the push towards a bloody September/October in the markets starting early, and will volatility around the world provide the impetus for the next collapse or Great Recession?
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.