The Crash of 1987
Hypists talk about what happens if
[Timeline 1982] As part of his gang's criminal scheme to destroy the financial system of the United States, Ronny Raygun approved the creation of "stock index futures" to be used by manipulators to "insure" their market rigging activities from loss. Ronny had been married to an "alleged" Communist Party USA member some time prior to the beginning of his political career. The approval of such a negligible "margin" rigging tool was key to all subsequent criminal activities against the American financial system.
[Timeline July 7, 1986] There were already murmurings in the then not yet fully censored financial press about the futz market "tail" wagging the cash securities market "dog". But this was the first overt criminal use that I noticed of the index futures being used to create a mini crash. Keep in mind that I had by that time already been trading stocks for nearly 25 years and had a pretty good sense of how markets normally act. The July 7, 1986 events were not normal market activities.
[Timeline September 11, 1986] Second major use that I noticed of the criminal purpose "index futures" to arrange a mini crash against the then still mostly fair and orderly, publicly accessible, continuous auction securities markets. It amounted to a practice session for all of the criminal manipulations of the cash securities markets which have followed that pair of muscle building "tests" of the criminal tool that Raygun and his gang had brought into being against the financial system of the United States. "Funny" how that was chosen 15 years later to be the date for the knockdown of tall buildings in New York City by latter day terrorists of the same "political party".
[Timeline January 5, 1987] Following desultory trading throughout the latter part of 1986, this was the first major use that I noticed of the criminal purpose "index futures" to arrange a major upward rigging of the cash securities markets. Given the domino effect in the negligbly margined futz pits where lemmings are compelled to cover their shorts, it was inevitable that there would be considerable follow through. There was, in the subsequent several months, devoid of any rational economic basis for it.
[Timeline August 26, 1987] Day after the all time high of the rigged blowoff in the cash securities markets, then still financially strong and solvent International Business Machines reported "less than expected" earnings, getting a downward slide started in the cash securities markets. All through the rigged "bull" market there had been increasing hype for institutions to use the manipulated index future as an "insurance" mechanism for "protecting" large institutional portfolios from potential downslides.
[Timeline September 22, 1987] With a slide in the cash securities market well underway, another upward rigging was arranged by the manipulators using index futures to create the "bull trap" (temporarily higher highs) out through October 2 so as to snooker "trend following" game playuhs into buying the overpriced securities in the cash market.
[Timeline October 6, 1987] Following a single intervening sideways day, "surprise surprise" the cash securities market was sent into a major plunge (down -3.5% on the DJIA) setting off the domino sequence which led into the generally recognized Crash itself.
[Timeline week of October 12-16, 1987] There was some respite for the weary the first two days of the week with the DJIA closing Tuesday only down -1.6% from its October 6 close. The key identifier during the week was that with every decline the ex-perts insisted "this is the bottom", "this is the Bottom", and ultimately "this is the BOTTOM" ;(. With each such insistence, the market promptly went down, Down, and DOWN. By Friday's close, the ex-perts weren't looking at all pert nor perky with the DJIA down -10.4% from Tuesday's rally close.
[Timeline October 19, 1987] The trap set for those relying on the fraudulent pretense of "insurance" via futz market "contracts" was sprung first thing on Monday October 19. All of the "index futures" opened DOWN LIMIT (at prices radically below where the market had closed on Friday). The only thing that the gulled and hornswoggled reliers on fraudulent pretenses could do was to sell stocks into the cash market. They did so in wave after wave of frantic liquidations of "uninsured" stock positions previously held by herd mentality manglers of mutual funds and other "institutions".
[Timeline Wrapup] The market closed down -22.6% at the close of business on the day which discussants have subsequently referred to "as if" that were "the Crash". In fact the stage had been set long prior, as reviewed in this Timeline discussion, by the criminal manipulators who created the Blowoff, sold the fraudulent pretense of "insurance", and then sprang the trap on those gulled into believing them.
[The Point part 1] What was the purpose of creating the Blowoff of 1987 and inevitable subsequent Crash? The DJIA ended the day of "the Crash" within a small percent of where it had been rigged during the mini crash of September 11 and 12, 1986. No harm done? Quite the contrary. Consider now the bilge spewing bankruptcy coverup artiste brought in by the Bush crime family to cover for its member Neill during the later stages of the bankrupting of Silverado Savings & Loan Association in Denver Colorado. For his criminal theft coverup services then, Greedspan was appointed Chairman of the Federal Reserve Board early in 1987.
[The Point part 2] There had been a couple of major thefts of stockholders equity prior to 1987. One was set up by a notorious oilman to steal every other owner's equity out of a company he threatened with takeover. The other was a buyout of a later presiduntial cadnidate resulting from his obnoxious behavior as a Bored member at Generic Mudders in which he received a massive payoff to get him off of the Bored at the expense of all of the other cash paid public stockholders. But the reintroduction of widespread criminal theft of stockholders equity on a wholly nonratable basis via what were euphemized as "stock buybacks" was a wuck product of Greedspan during the Crash of 1987.
[The Point part 3] Notice that I mentioned "re"introduction of criminal theft of stockholders equity via "stock buybacks". Oddly enough under exactly the same criminal euphemism, it was stock buybacks which gutted and looted all and more than all of the equity out of major American corporations during the late 1920s and early 1930s. Absence of equity and presence of debt to finance those criminal thefts was what created and caused the horrendous wave of bankruptcies during Great Depression I. It was a very old play book that Greedspan was using to set up his very own Great Depression II commencing with encouragement of criminal theft of stockholders equity via "stock buybacks" during the Crash of 1987. But only the first of many criminal abrogations of Article IV of the US Constitution Amendments (prohibits illegal seizures of the property of any American citizen) which Greedspan implemented during his eighteen year reign of terror against America.
[The Point part 4] Having done their not so little Krystal Nacht exhibition of control of the cash securities markets, it was inevitable that the criminal gangs led by fascist puppet Ronny Raygun would formalize the arrangements to facilitate further criminal thefts. That was accomplished in 1988 with the establishment of a coordinating committee by Presidential Order which has come to be known as the "Plunge Protection Team" (although its real functions are quite otherwise than "protecting" and facilitating anything but criminal thieves). The Plunge Protection Team consists of the Chairman of the Frauderal Reserve Bored, a representative of the US Treasury Dept to provide the money to finance the criminal manipulations, a representative of the criminal purpose "futures" markets to manage the manipulations from that end, and a representative of the SEC to provide an imprimateur for the long previously defined criminal manipulative activities of the committee and its agents.
[The Point part 5] To be sure, the criminal manipulators did have at least some token opposition. Notably, the 25th Chairman of the SEC, Arthur Levitt appointed in July 1993, made an attempt to gather sufficient information to facilitate prosecution of the criminal manipulators. The criminally corrupt snitters in Worsingdone District of Corruption promptly handed his head back to him on a leaden platter and the honorably intended Mr. Levitt became nothing but a mouthpiece for every subsequent criminal scheme designed by the manipulative gangs and other thieves on Wall Street during the rest of his tenure as Chairman. That mouthpiece activity extended even to organizing a series of "town meetings" at which criminal gang representatives spewed the gospel of criminal theft as if it were "for the benefit" of the public being defrauded and assets stolen by the criminal gangs.
[The Point part 6] It was not until the late 1990s that I myself made my first public statements opposing the fraudulent machinations of His British Lordship the criminal mastermind Greedspan. The occasion was circa the notorious "irrational exhuberance" coverup for the utterly criminal fraud and theft systems which created the Internet Mania swindles. Faced with a Bubble fraud building in the dot cons and dot gones of the day, Greedspan refused to do the one thing mandatory to rein in the criminal thugs running the frauds and thefts. Instead he pretended that only by the unpopular act of "raising interest rates" could the criminal manipulation be diminished.
[The Point part 7] The only strategy which ever has worked to abort criminal manipulative practices is increasing MARGIN requirements, something which always has been within the authority of the Frauderal Reserve Bored that Greedspan was chairing at the time. The reason is that the cause of Bubble manipulations and thefts is the ability of "borrowers" to pyramid their manipulative holdings of trash paper stocks so as to compel those rationally "short" of the trash paper to cover and to snooker the naive into buying what is made to appear to be a skyrocket "to the moon". All of it is based on borrowed money since the criminal manipulators had long since expended whatever minimal capital of their own was ever involved.
[The Point part 8] Particularly odd about Greedspan's dereliction of duty and promotion of criminal theft via manipulation of stocks during the Internet Mania swindles was that a mere two or three years earlier, when asked what would be needed to rein in a Bubble market, Greedspan himself had said that he recognized that increasing margin rates was the only procedure that would work for the relevant purpose of dissuading criminal manipulators from rigging stocks to ludicrously high levels as part of theft of investor resources.
[Subsequent part 1] Greedspan and his criminal associates didn't stop with their abrogations of Article IV of the US Constitution Amendments at mere theft of the ratable ownership interests of cash paid public stockholders of major and minor American companies via "stock buybacks". Most egregious of his criminal attacks against the American financial system was the flagrant sabotage of the former banking system so as to facilitate criminal access to confidential financial information of every person having a bank or other account on infinitely hackable web sites on the crime infested whirled wide wubb and furthermore to allow any criminal anywhere in the world to vacate the entire balance of any such financial account at whim without notice nor authorization from the owner of the money under such ruses as Electronic Funds Transfer, Automated Clearing House, Point of Sale Terminals, and the most recent "Check21" forgery facilitating theft system.
[Subsequent part 2] A key mechanism for criminal manipulation of stocks involved freeing thieves of bank depositors funds from the restrictions placed on them by the Glass-Steagall Act of 1933. They had been making "loans" for the criminal purpose of theft of stockholders equity via "stock buybacks" anyway. But on 991102, the fraudocracy's long since bought by "cattle futures trading profits" bribery organized crime presidunce Clinton signed the Gramm-Leach-Bliley Act repealing those restrictions. Felons in the bunko busymess were freed to steal depositor funds for manipulating stocks, including their own publicly owned shares, just as they had done during the crime and theft wave which created Great Depression One.
[Subsequent part 3] The crime wave against the American economic system continued in early 2001 with commencement of theft of the rightful incomes of the elderly interest income dependent retired so as to facilitate a Bubble market in real estate prices and massive escalation of housing costs for all Americans. At that time when credit worthiness resulting from the Internet Mania and the thefts of stockholders equity already perpetrated required large increases in interest rates, Greedspan began slashing the rates to ludicrous low levels. Many elderly had their homes stolen during the first wave of Greedspan's theft of their rightful incomes when it came down to having no money for food or medication or other imperative costs nor any money to pay mortgages for those who did have some borrowings against their homes.
[Subsequent part 4] Rigging the price of money below the rate of inflation created quite a boom for frauds in the "refi" and "loan processing" busymesses, along with drastic increases in the costs of materials for new construction for "sale" to freeloading frauds who had no conceivable means of ever paying what they promised to pay other than perpetually increasing "home equity loans" to support their profligate lifestyles. Yet the bunkos made those fraudulent loans, often with full knowledge of the incapability of the "borrowers" ever to repay, because it took housing supply off of the market and facilitated criminal rigging of real estate prices to ludicrous high levels "so long as the Bubble lasted".
[Subsequent part 5] Meanwhile back on Wall Street, the criminal thefts of stockholders equity continued to the point that most major banks and vast swaths of other publicly owned corporations were de facto bankrupt long before the "mark to market" rules created the recent intentional "crisis" situation. Going further, the securities market itself was rewired to facilitate fragmentation, the process of compelling participants to buy or sell at prices rigged by creating numerous euphemistically styled "competing" submarkets and sabotaging and eliminating the former fair and orderly, publicly accessible, continuous auction market. Along with price rigging, a side purpose of fragmentation was enhancement of irrational volatility so as to facilitate criminal manipulation and further thefts of the assets of participants in the market.
[Subsequent part 6] The coup de grace was implemented beginning in October 2007. No longer were purchasers of securities to receive anything of value after paying for stocks. Instead a permanent adverse possession in the hands of the unregulated "transfer agent" busymess, long known for its electronic swizzling out of existence of ownership records and providing access to mere "accounts" to every criminal in the world on their infinitely hackable web sites. It became entirely a matter of "choice" of those criminal thieves of securities and of the income on securities whether purchasers would ever receive actual possession of property or ever receive any of the income supposedly being produced by that property. They called the criminal theft by adverse possession a "Direct Registration System" while the reality was a Die Recked Regurgitation Swindle.
[Subsequent part 7] By no means ultimate nor the final chapter in the criminal theft systems engineered by His British Lordship the criminal mastermind Greedspan and the criminally corrupt legis critters in Worsingdone District of Corruption, but the theft of $750 Billion of property of American citizens scheduled to be donated to the criminal thugs, long since de facto bankrupt prior to the engineered "crisis", who have been running the bunko system and the now fully fraud and theft "securities" markets, was an additional sweetener for the fascists of the sonofaBush/Greedspan administration. Those criminal practices, designed by mastermind Greedspan, were continued by sonofaBush crony Burn Yankee who promised perpetuation of such abrogations of the US Constitution as part of his appointment to be successor Chairman of the Frauderal Reserve Bored.
[Subsequent part 8] As part of the "bailout" criminal theft of $750 Billions of American property from the Treasury during the single week of 080922, all of the remaining "investment" banks were allowed to reclassify themselves as deposit taking commercial banks. That increased their already massive capabilities for criminal theft via the Automated Clearing House and other criminal abrogations of Article IV of the US Constitution Amendments in the commercial banking busymess.
[Conclusion] All these intentional destructions of the American financial and economic systems began as part of and in furtherance of the manipulations which created the Crash of 1987 and its Black Monday on October 19, 1987. That was the "official" date when and how it all began as a treasonous scheme against the American people and our Constitution and personal and corporate finances. It is that "inception" feature which makes that particular wholly engineered and fraudulent Crash an important event in American financial history.
This blog was originally published, substantially as it appears here, as part of an event titled "21st Anniversary Memorial BLACK Monday 1987" on the Facebook web network during the days leading up to October 19, 2008. There was no need to gather at Broad and Wall Streets in NYC for that "event" because all of us involved were at our own desks around the world at the original time. The blog has since been expanded to include references that I hadn't had time to write up for the FB published "event".