Wow. This is wild.
"INSTRUCTIONS: You are to write an article about criminals manipulating stock markets on an international scale. However, under no circumstances will you mention 'naked shorting' or even 'shorting.' Instead, refer to 'puts,' even if you have to write some terribly awkward sentence like, 'A... scenario in which terrorists buy millions of dollars of put options and blow up buildings or airplanes to increase the puts' value....' In addition, you will not say anything negative about hedge funds. Actually, we'd prefer if you don't mention them. If you must, just refer to 'substantial liquidity pools."
"First they laugh at you. Then they fight you. Then you win. Then they circumlocute."
Prior to the 9/11 attack on the World Trade Center and Pentagon, suspicious
trading of puts was spotted in American and United airlines. There was
similarly suspicious trading in Europe in insurance-company stocks. U.S.
intelligence agencies determined that portfolio managers coincidentally
initiated the trades before al Qaeda's attack. But it is now evident that
the intelligence community regularly monitors the markets for terrorists.
And the trend toward merging exchanges across national boundaries presents
opportunities for greater regulatory enforcement in global markets.
A "JAMES BOND SCENARIO" IN WHICH terrorists buy millions of dollars of put
options and blow up buildings or airplanes to increase the puts' value is
deemed unlikely by intelligence authorities. Yet less developed securities
markets have reported stock trading by terrorists to raise money. In
February, India's national security adviser, M.K. Narayanan, said at a
security-policy conference in Munich that India had evidence of "isolated
incidents of terrorist outfits manipulating the stock markets to raise funds
for their operations."
Cox would not say if terrorists were active, or present, in U.S. markets.
But he was clear about the reason for this increased illegal activity in
"This phenomenon is born of the arrival on the scene of so many different,
and substantial, liquidity pools," Cox said. "It used to be that significant
capital had to be raised in the United States," but that is no longer true.