Market Terrorism
By Johns Wu on May 16, 2006
So I thought of this idea the other day, and I call it "Market Terrorism." I thought of this idea after watching the second season of 24 where business executives involved in the oil industry try to get the US to invade the middle east to drive up oil prices. Does this sound familiar or what? If not, let me jog your memory… Bush, "WMDs", Iraq, $60 oil, Cheney, Haliburton, big oil making record profits.
Anyway, I don't really care for politics, so I'll continue…
"Market Terrorism" is when people perform acts of terror in order to drive up their stock holdings.
I honestly wouldn't be surprised if it already happens in real-life, considering the extent to which people will go to make money.
For instance, with the birdflu being a hot topic in the news, a "Market Terrorist" could bet big (ie, buy call options) on bird-flu stocks, and then somehow get the bird-flu into the US. It shouldn't be that hard… Just fly to China, smuggle in a chicken infested with the disease, and dump the chicken in Times Square. Consequently, the news of birdflu cases reported in the US would drive up these stocks like CRAZY, and the market terrorist would make a killing… only at the risk of causing a world-wide epidemic…
Also consider 9/11 and the effects that the attacks had on airline stocks. Anyone involved in the plot could have easily made 2000% returns by playing put options on airline stocks.
Do you think acts of market terrorism have occurred in the past?
Can Homeland Secuirty try to monitor securities for abnormal put/call activity to predict acts of terrorism?
What do you think?
14 Responses to “Market Terrorism”
You can, however, still place a bet on the location of the next attack.
http://www.where-next.com/home.php
A place to make money if your terror group is running short of funds?
Have you seen the documentary, The Corporation? In it, they interview a commodities trader who talks with complete honesty about his experiences during 9/11. Basically, when the towers were hit, he, his clients, and his trading peers cared less about the loss of life and more about the price of gold. Greed can be a very powerful force.
BUSH IS A LIAR AND A TERRORIST.
Between this post and the pyramid scheme post, I just hope you’re not out committing felonies in between musings.
Stick to being a trader, much less chance of going behind bars.
haha dont worry. i dont dare to do that kind of stuff.
just some ideas on what others in the market could be doing.
all new accounts who made a killing from buying heavy puts on 9/11 plot were frozen and investigated. so no money for them.
causing terror and benefitting from it sounds like a nice idea but anyone making a killing with call options gets investigated for inside info by the SEC as I and my friends were when we were fortunate enough to buy heavy calls on a company just prior a big merger was announced.
awesome theory
TYSABRI ROCKS
Reminds me to a film call: SwordFish (John Travolta).
A couple of the comments here on the refineries and the large oils were weak.
First having a refinery does little good if the crude can’t be supplied to refine. The worldwide demand is quickly taking over the ability to deliver the crude. Refineries have not been built in decades but efficiencies have increased the amount of product being processed dramatically.
XOM doesn’t make the bulk of the product from refining and selling oil, the bulk comes from selling the crude oil for foriegn interests… The contracts specifically state that XOM may not sell oil at a price that makes economic sense… they must sell must sell at the price the market (futures) is bidding… so point the finger at the hedge funds and futures traders that are bidding up the price…
India and China will continue to grow demand at a rate that will bring demand beyond supply… so if you think you have seen high prices… then hold on to your seats… Even worse is the fact that they have artificially pegged the yuan to the dollar keeping it undervalued… My giuess is this changes on we are competing in a tight oil situation
second sentence of #12 should have said profit not product… sorry for any confusion
JWU- it would be far more effective to place the infected chicken in a tyson coop rather than times square. To the anonymous replier, Pres. bush, like yourself and the rest of the world is living the legacy of that LIAR AND TERRORIST SUPPORTER jimmy carter.
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The Pentagon thought of setting up an online trading market on terrorism with the plan of using it to predict these crimes. However, it was axed with one of the reasons being it may incite the crimes.
http://news.bbc.co.uk/1/hi/world/americas/3106559.stm