Saturday 24 November 2012

WOLVES OF THE FINANCIAL MARKETS PART-I

When someone loses, someone gains from their loss. How the promoters, operators, manipulators, investment bankers, brokers, market makers , media and its connected persons and insiders make trillions of rupees when the stock market decline and stock prices go-down and vice versa. How the stock markets and commodity, currency, bond and option markets are controlled and manipulated by a gang or it won’t be wrong to say wolves of these markets.

Thousands of crore of rupees have been stolen by these wolves through the manipulations of either running or jacking up the prices or of short selling. Masses are always slaughtered like pigs.

The general notion of the investors is that money is made only when markets go up. But these wolves of the markets are making billions and trillions of as the markets go down.. No one seriously analyse the market. Rather everyone is unhappy that the markets are declining and the wolves of the markets are enjoying and celebrating the downfall in the stock & commodity prices. When there is decline, every media channel advocates for its rising. They call the analysts, brokers, corporate big wigs, politicians, bankers on their TV screens with a well written script and try to convince the gullible investors that this is just a temporary phenomenon. Fundamentals are good. It is the best time to buy for long term. Coloured graphs, pie-charts and glossy headlines on Business channels brain wash the minds of investors and traders.

And the innocent investors again believe them and again cheated.

When these wolves wants to have a big sale in any particular stock they have accumulated over a period of time at the lower price, they substantially raises the price of the particular stock .that they makes a market for so they can easily sell their paper stock. In order for him to do them, news stories, analyst recommendations and media publicity may conveniently appear to get people’s attention. The unsuspecting investors may get excited to buy the particular stock as they see the price go up substantially. Then these wolves easily sell their own stock that they have previously accumulated over a period of time at lower prices.

Not many people are aware of short selling or I will say even after knowing about short selling they never think or are scared of selling short. The implications of short selling I will explain later in this piece of article.

Who is going to make the investigation? Nobody will, because everyone from the decision makers to regulators to analysts to media is all a part of this looting process. As the investors has the mindset to just buy or invest for getting a percentage of return, these wolves of Markets steal the people money in all these markets. Business channels invite the so called analysts, sit with them, discuss with them, rather I will say tell them what to speak and what not to speak. Now I will state you an incidence. I was sitting with one of my friend in his office at Connaught place. My friend is a chartered accountant and now diversified into real estate. He made a good amount of money from the share market. He always used his own mind in identifying when, where and how much to invest. When we were having tea, a reporter with a camera man and his assistant came to his cabin to have his view on the market. Last few days market was in a bad shape. Nifty came down from 6350 to 2500. Reporter had given him a set of questions. First he asked “As the market has come down so drastically how much you lost.” My friend replied” “I have not lost. Rather I have made a good amount of money. I sold my whole portfolio when the Nifty was at 6200” Reporter told him “No, no. we don’t want this. You say that you have bought at 6000 and by this time he has lost a big chunk of money” My friend said “Sorry, I don’t lie” Another question asked by reporter “Now what you feel about the market. How much downfall is there more in the coming days” My friend replied “This is the time to buy and I have already started buying it. I expect the market to be at least double from this level in a short span of time.” Again Reporter said “Sir, what are you saying. You please say that from here nifty is going to touch 1800 in a month time.” My friends said “sorry Mr…… (whatever was the name of the reporter) and with folded hand given him a handshake.” When they went off, we both burst with laughter. And from that day onward I advice all my friends to keep the mute button on of their TV set while viewing the rates of shares or commodities on these business channels.

Stock and commodity markets are the biggest regulated, authorised gambling and gambling casinos. Like in the casinos whatever you make in the short run, you are going to lose all whatever you have in the longer prospective. Common Investors and traders trusts the markets and think that stock and commodity markets are legitimate one and is regulated by the Governments. But the true fact is that the Governments are controlled by the wolves of the markets and the markets are licence casinos to loot innocent unaware investors and traders and players of the markets worldwide.

The stock exchanges in the world are set up is set up to steal the investors and traders money. A specific strategy to pocket the money of the investors and traders is made by a cartel of operators and then implemented in a systematic way by all the intermediaries like promoters, institutions, brokers and the corrupt and manipulative media besides the greedy politicians. The investors are misled by the corrupt media channels and already ‘sold analysts’ to trust the stock and commodity market as a legitimate way to make money. In reality it is a different story altogether. Only few people make the money. One can make profits for sometimes but ultimately one is going to not only loose all his money but lands up in debts.

The Stock and commodity markets should be thoroughly investigated by outside uncorrupted members of civil society forum and the masses will come to know the truth that how everybody is being cheated by the set up and the operation of these markets.

A time has come that some new fair investment vehicle be created that people can understand and trust. The new investment vehicle should help in raising capital and at the same time give the innocent investors or traders a fair and real chance to succeed and not loose their money. This new market should be designed in a way where these wolves of the markets should not be able to artificially create ‘boom and bust’ cycles to loot the investors and traders.

The stock and commodity exchanges should have no place in a country likes India .It is not an institution to promote industrialization. In fact, it is more or less a gambling den where the savings of the middle class people are regularly siphoned off into the coffers of these wolves of the markets.

Since the inception of the exchanges, wolves of the markets had induced & made the people buy worthless printed stock certificates on the guise of making them the co-owner of a company and making dividends and growth of the amount invested. Thousands of companies came, raised the money from the investors and vanished. After every four five years a new breed of wolves enters the Financial Markets. Like wolves, the wolves of markets operate in a group, they get very serious when they are on hunting and they love the life and they never remorse after stealing money from the masses. The wolves of the markets has almost the same characteristics as wolves of jungle like they are an effective, widespread, and basic predator and they are not very good adapting to change.

These wolves know if they will push one market up, automatically other markets also run up. And if they want to make market fall, so do basket trading and make one market fall, automatically each and every markets will tumble down.

And if you look at the news, data or information it is a big stupidity. How the data will be reliable when half of the economy is running on black unaccounted money. There news and information are manipulated. And even if it is not manipulated these wolves takes those information and make their strategy to prey on the investors.

It was on January 12, 2011. Negative IP data came in the market. On the face of it the market should have gone down. Moreover all the anchors & the analyst were singing the songs and making tunes of Mandi in their morning sessions of their programmes.

Investors & traders got panicky & the market manipulators got the chance to make loot from poor investors & traders who just listen to these channels & their analysts and the Sensex is up from that point around 500 points.

And again in the closing session every analyst changed their tune and started singing songs of Teji. This is not a story of a day it is of everyday.

This cartel of international players and big brokers know at what time and at which date they are going to make market move in either direction. So, accordingly they take their future positions and attack on all the markets with their pre-planned strategy and in this process the investors lose their money.

Individual stocks are already occupied by operators who accumulate huge numbers of their stocks at lower level and then rig the prices and lure the public and investors to get attracted to the stock. Then they start rigging the price upwards and when the stock has appreciated by 40 to 50 % and in some cases double triple, they start offloading there accumulated stocks. This also creates a new level of prices always on upside.

Some of the stocks are rigged by the operators on behalf of promoters of the company, who give commission to broker to rig the prices, so that company receives F.C.C.B's or QIP's at higher market prices. Lots of companies are doing this as they are a big time need of money through QIP's route to fund their future or ongoing project or may be to fund some of the working capital or to repay their debts. There is always a driver who operates an individual stock. Like any vehicle cannot run without a driver, any stock or commodity also cannot go up and down with a shrewd manipulator or operator. Almost every stock is occupied by these operators except few whose percentage is quite negligible and which are not easy to rig.

As the share prices has already to a peak level and is over-valued, then this technical analyst starts making call for going long on the particular scrip. They also pass the rumours through other sources and give targets which are very high. Even Fundamental reports with business, strategies, future guidance and financials are inflated by the promoters. Then the anchors along with analysts on these business channels come and mislead the masses and they give further targets of particular stock and commodity so that the public should not sell and rather buy and these wolves make a killing in this process.

Why the innocent investors don’t understand that when market was at peak level 21200 in Jan' 08 these analysts talked of Sensex to reach at 30000 and celebrating on their channels after every 1000 point rise and the same set of anchors were seen talking of Sensex to come to 6000 when it slipped below 10000. Moreover again they come in 2011 to tell the gullible investors that by another year time Sensex will breach the previous high.

On the guise of educating & informing the investors, they are misguiding them. Because of no such strict regulation many of the business channels has been fooling the investors. Such corrupt business channels misleading and misinforming millions of investors. Putting a disclaimer clause has given then an escape route. Their flagrant disregard for providing fair-and-balanced reporting demonstrates that they have become a clear and present danger to our financial markets and national economy. In any other industry, such malpractice and deception would not go unpunished.

Ask any person who actively trades on the Indian indexes (BSE or NSE), follow the so called TV experts and you are doomed. Retail investors & the new trading breed are regularly trapped by following news, 'tips or calls' about stocks. These so called expert bozos don’t buy stocks they recommend but sell since there will more buyers than sellers, following their advice, taking the stock price higher. I repeat, any person who follows these business channel jokers will see his capital vanish in no time.

This loot is going on since such a long time & nobody has come forward & raised the voice. Why not the recommendations by analysts should be banned by the authorities? Why the regulatory authorities are keeping their eyes & ears close? How long this loot on investors & traders will go on? Why everybody is keeping their mum? Why not all the analysts who come on the channels & fool the investors be banned?

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