DARK POOLS: The Next Unregulated Bubble

The Day The Music Died…

In 1979, then Democrat President Jimmy Carter, flanked by a Democrat Congress chaired by Walter Mondale and Tip O’Neil, passed an SEC Regulation allowing what are known in Wall Street as Dark Pools.   Tip O’Neil was a major advocate of Universal Healthcare and Roosevelt’s New Deal. Mondale is still working for Dorsey and Whitney, a law firm in Minneapolis where Democrat Presidential candidate, Amy Klobuchar, is also employed.

This SEC pronouncement allows investors to anonymously purchase large blocks of securities actively traded on any exchange without the trade being listed. As such, the real price of any given stock is inaccurate and might not reflect the pooled purchase or sale for several days or more.   These ‘after hours’ trades are not public, are typically only available to select high wealth investors including banks and hedge funds, and are considered a stealth parallel to public exchanges while having far fewer regulatory and disclosure requirements.

Initially, they represented a minor force in the markets – roughly 2-3% of trades.  But the passage of the regulation has been the mainstay for banks and Wall Street to run amok.

Dark Pools are likely to be the next Financial Crisis.   Banks have already been cited and fined for fraudulent trading and misinforming clients, but they don’t care, the fines are a fraction of the revenues.

In 2007 as SIV’s (Structured Investment Vehicles) began to stumble invoking the Financial Crisis, Dark Pools began to grow substantially and are now thought to represent perhaps as much as 50% of market trading. Today most pools are owned by mega banks including; Deutsche Bank, JP Morgan Chase, Citigroup, Goldman Sachs, Credit Suisse, Bank of America, etc…

Having negotiated their way out of the price fixing Libor scandal of the 1990’s during the Clinton regime, banks then created the next buble, SIV’s, and when the banking crisis revealed the schematic fraud of SIV’s banks demanded bailouts, and Dark Pools became the nouveau riche fashion statement.

Today, banks actively trade their own and each others shares in massive Dark Pool bundles manipulating prices and using the shares as collateral for loans.   In essence an elaborate Ponzi scheme, but more importantly a vast money laundering platform as well.

Banks argue that Dark Pools are actually beneficial because fees are lower and all investors win… Except those who don’t have the billions it takes to become an investor.

By the end of 2008 when the bank collapse was at its height and the last SIV’s had shuttered, Dark Pools began to rise. With Bush’s Federal Reserve bailout funds of $700 billion authorized to get these poor banks back on track, they simply redirected the funds into a new Ponzi bubble paid for by US taxpayers.

Follow The Money.

IN 2000, Jeffrey Epstein became Director and Chairman of Liquid Funding Ltd, in partnership with Bear Stearns.   According to Paradise Papers, the partnership was registered in Bermuda and went out of business in 2010.  Liquid Funding was a SIV.

Bear Stearns was worth $20 billion before the Financial Crisis, within a few months that capitalization had tanked to $235 million when Chase Bank bought them March 2008.

It is likely Epstein’s wealth was dramatically affected during this time frame as well – of course at the heels of his initial indictment in 2006.

Of course, if banks are manipulating their own prices with Dark Pools, it goes without saying that equities are also onboard capitalizing on manufactured profits.

But all of this manipulation ultimately finds at its core The Federal Reserve.

In 2007, the assets of the Federal Reserve were valued at $869 billion – by 2017, those assets had risen to $4.5 trillion with the help of Ben Bernanke and Janet Yellen.   A rather remarkable feat created under the monetary policy of ‘quantitative easing’.  But it was the “Gramm-Leach-Bliley Act of 1999” that gave the Federal Reserve the authority to determine ‘appropriate’ financial activities for bank holding companies and member banks.   It was signed into law by Bill Clinton.

Gramm was a senior advisor to John McCain during his presidential run. Breaking ranks, Leach endorsed Obama with Madeleine Albright and was subsequently appointed to Obama’s 9th Chair for the National Endowment for the Humanities. Both Gramm and Bliley were initially Democrats.

It would appear that the Corporate world at large much approved of the deregulation imposed by the Chair of the SEC in 1979 – Harold M. Williams.   It is worth noting that the SEC is an independent agency within the federal government and as such operates outside the executive office of the President.   It was created as a part of Roosevelt’s New Deal.

The SEC and the Federal Reserve will often work jointly.

WE THE PEOPLE

A President used to represent a Leader whose nationalism and pride drove him to want more than anything to see this country rise up within the context of greatness. Not that we have to be supreme, but that we are built on a core of beliefs and morality that represents strength and commitment and honor. Throughout history we have had some Presidents who strove for this – and some who seemed more determined to succeed at an ‘agenda’.

Franklin D Roosevelt came into office facing The Great Depression and WWII. He didn’t blame the previous administration, he didn’t cry foul, he didn’t need a teleprompter or an ear mike to tell him what to say, he saw People and the best way to mobilize was to ask everyone to help him in this cause.

Facing the crisis, he implemented relief and recovery initiatives, pushed legislation to help resuscitate a dead economy, a dead manufacturing sector, and a dead industry. He created the New Deal, held fireside chats and gave hope! “There is nothing to fear, but fear itself” – was the motto that gave him respect, for everyone knew that his own test in fear came when he lost the use of his legs from polio. And he CHOSE to rise above it and not succumb to fear!

He was a man who represented WE The People, Our Country, and ideologies of working together in a mobilized community effort.

Our GOP candidates don’t have that heart. Their agenda is weak, it is filled with rhetoric that no one believes because it comes from the same rhetoric we’ve been hearing for decades!  No one has faith in their words as they remain – blanks. Pistol whipping, empty, blanks.  And yet, they continue to ram the same junk down our throats knowing we are done!  Which makes them just look idiotic.  Are you listening or is your ‘agenda’ your issue because We The People are not falling?

The only reason Trump has garnered support is because the people hear his somewhat muted cry for Our Country and The People behind the dearth of crass verbiage and a sharp tongue.

Ronald Reagan was another amazing man, not just a politician speaking half truths and waiting for a poll to determine his stance on a topic. He had an incredible core value ideology that was always steady, real, and accountable. He symbolized strength and The People naturally followed, eager for a true Leader as opposed to a true narcissist.  Where are the men?  Because I keep seeing school boys pushing and shoving on an elementary school playground…

Amazingly articulate, Reagan gave a speech on behalf of Barry Goldwater in 1964 that is worthy of memorization. “A Time For Choosing” was about the shift in our country wherein Socialism had silently begun to take over.  So subtle, most Americans had not even noticed. The same Socialism we had sought to defeat in Russia and Nazi Germany, had dug its tentacles into American lives and livelihoods.

Today, most people don’t even understand what Socialism means, what it decries, what it absorbs, and what it kills – Freedom.

Reagan saw the path that we were following and succinctly sought to warn us of the impending disaster. Goldwater lost the election to Lyndon Johnson who had been Kennedy’s choice for Vice President. A vote for Johnson symbolized a vote for the now deceased Kennedy.

What would it take for a GOP candidate to win today? A stance that is built on a core of integrity, honor, and strength, a stance that believes in this country and has a means for recreating our nationalism. A stance that brings The People together, rather than divides. A stance that has a clear understanding of who and what our enemy is, and will vow to eliminate that threat – period.

Unfortunately, what we see on the debate stage is pandering, mud slinging, and bullying and we are left shaking our heads and grumbling.

What is a Leader? He is someone who is not ruled by fear. He is someone confident and clear headed. He is someone whose integrity is unquestionable. He is someone who believes in our country through The People, and seeks to create a community rather than sectarian division.  He Leads without confusing  dictating with leading.  He is someone we Trust implicitly.

What if instead of telling us about Obama’s failures, the GOP candidate gave us ways we could regain our strength? What if instead of bemoaning Obama and Hillary, we didn’t give them the time of day  as they aren’t worthy of our mention? What if instead of fearing Trump, they saw how to capitalize on his platform of ‘Truth’ and make it better, more honest, more respectful, more strong!

What is the answer right now? Regaining pride in our government, pride in our President, and pride in our country.  Who should be our mentors?  Certainly not the elite, certainly not Hollywood, certainly not the corrupted CEO’s who lavish indiscriminately on themselves.  Take a lesson from Goldwater.  Take a lesson from Reagan.  Take a lesson from FDR!

Merkel may have made a few mistakes, but she made them holding to her integrity.  Putin may have made some mistakes, but he did it from his unswerving Nationalism.  What if, we actually had a Leader that made us feel safe and worthy and strong?