The 9/11 "Puts"

In the world of financial investments, you can purchase what is called a "put option" against a myriad things, from specific corporate stocks, to various indexes, to virtually anything upon which a value can be placed. A "put" is basically a bet that the value of said security will decline by a certain amount and by a certain date. It is a gamble, but with a known and limited downside. If the value doesn't decline, you loose whatever it cost you to purchase the "put", but no more. However, if it does decline, well, the money you gambled on the "put" is multiplied many times over and you can really score big. (Of course, your big score comes at the expense of those you sold you the "put", who figured you were crazy and wanted to bet against you.)

So, it turns out, someone or some group purchased a ton of "puts" against American and United airlines, as well as several of the largest financial firms, before 9/11/2001. It doesn't take much of a conspiracy theorist to think that someone knew that some event would occur to make those companies loose value, and that that someone decided to take advantage of their inside knowledge. Homeland Security says there were "huge surges" in the purchases of put options on these stocks, and whoever bought those puts made massive amounts of money.

DHS goes on to say:

Fast forward to the present day, and we have the same type of trading that took place in the days that preceded the 9/11 attacks – but on a larger scale. Nearly $1 billion of “put options” have been purchased, basically betting that Standard and Poor's 500 index will fall significantly by the third Friday in September. A large number of these options have also been purchased calling for 50% decline by September 21, 2007. For example, a 5% drop in the Dow Jones Industrial Average would be the current equivalent of about 670 points. A decline of 11% would equal about 1,470 points in today’s market. Obviously, larger drops, such as a 50% decline, would cause an unprecedented market collapse. Money would be made for the purchaser(s) of the put options – but the same purchaser(s) stand to lose over $1 BILLION in the investment if the market remains relatively static through September 21, 2007. (Emphasis all theirs)

Now, markets are pretty topsy-turvey right now (topsy-turvey is a pretty specific financial term that I learned in grad school), and so it doesn't suprise me that some bets are being made against the indexes. Still, there are some things that make me go, "Hmm..."



Thanks to PW for the link...

Fred Thompon's Announces his Candidacy for President

I like this guy's style. and more importantly, his ideas and world view.

Microsoft to Customer: "We feel your pain!"

Thanks to Stubborn Facts

I remember the good old days

Did you hear they banned kids from playing tag at a Colorado school?? They were talking about it on the radio this morning and apparently a lot of schools here have already banned it. Kids are getting soft (emotionally...and physically as well).

Wow

I first read about these guys 8 months or so ago in the Wall Street Journal. I downloaded their album, and it is really good, beginning to end. But to watch them ply their trade live on the Letterman stage, is something altogether different. Wow.

Mind your own business...!

It appears that helpful folk from the "international community" are becoming more outspoken in their judgment of our ways here in the good ol' U.S. of A. As if our foreign policy doesn't offer enough juicy run-off to quench the critics' thirst, they're now lapping up on our gastronomical foibles (the comment section provides a wonderful insight into the advanced intelligence of our foreign critics), and even sipping at our system of justice and punishment for heinous crimes. They misjudged, apparently, the complete and utter apathy with which Texans view international criticism; the direct appeal from the further-evolved European culture warranted a 3 - sentence official response; clearly the Texas Governor doesn't want anyone in Brussels confused by fancy rhetoric or evasive verbosity, as is the penchant with higher life forms. Investors only need apply: The rest of you underfed intellectuals can chew on the fact that we pwned your weak selves 230 years ago, and we pwn you today! Get along, lil' doggy! Brilliant!!

Save Me From Myself: Save Others From Me...

“How did I get here?...Why is my life such a nightmare?...

Save Me From Myself: How I Found God, Quit Korn, Kicked Drugs, and Lived to Tell My Story, released on July 7 (7/7/07), is a reflection of the ex-band member’s amazing conversion story.

Hopefully he feels the weight of responsibility for the poor role model he was during those days, too.

The old maxim that money and fame don't buy happiness remains true, though many think it's just a korny saying, and are therefore destined find out the hard way, I guess.

F-22 Raptor bliss

Watch the whole thing!

Fight Global Warming: Drive, don't walk...

Food production is now so energy-intensive that more carbon is emitted providing a person with enough calories to walk to the shops than a car would emit over the same distance. The climate could benefit if people avoided exercise, ate less and became couch potatoes.

All I can say is, "Wow".

China tells living Buddhas to obtain permission before they reincarnate

Now that's what I call government regulation...