Financial terrorism in 2008 economic crash?

#1
utvolpj

utvolpj

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#1
Not sure I buy it completely since we were pretty stupid on our own but it's an interesting theory

Evidence outlined in a Pentagon contractor report suggests that financial subversion carried out by unknown parties, such as terrorists or hostile nations, contributed to the 2008 economic crash by covertly using vulnerabilities in the U.S. financial system.

The unclassified 2009 report “Economic Warfare: Risks and Responses” by financial analyst Kevin D. Freeman, a copy of which was obtained by The Washington Times, states that “a three-phased attack was planned and is in the process against the United States economy.”
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Suspects include financial enemies in Middle Eastern states, Islamic terrorists, hostile members of the Chinese military, or government and organized crime groups in Russia, Venezuela or Iran. Chinese military officials publicly have suggested using economic warfare against the U.S.

In an interview with The Times, Mr. Freeman said his report provided enough theoretical evidence for an economic warfare attack that further forensic study was warranted.
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Financial terrorism suspected in 2008 economic crash - Washington Times
 
#2
#2
if they wanted to blame the flash crash on this i could see it. but this theory that a couple of leveraged derivative trades could bring down the housing market is ridiculous.
 
#5
#5
utvolpj said:
it didn't say it was all on someone else but that it could have been influenced by outside forces
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not sure i can see how long term decline in housing could have been influenced by outside forces. hundreds of millions of people own homes in this country.
 
#6
#6
these are his key points for investigation

The report states that federal authorities must further investigate two significant events in the months leading up to the financial crisis.
The first phase of the economic attack, the report said, was the escalation of oil prices by speculators from 2007 to mid-2008 that coincided with the housing finance crisis.
In the second phase, the stock market collapsed by what the report called a “bear raid” from unidentified sources on Bear Stearns, Lehman Brothers and other Wall Street firms.
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you don't think they could have been influenced by outside forces that understood their importance to the US?
 
#7
#7
do you realize how much money you are talking about to actually have a material long term effect? billions at least. turns out all of those bearish on those companies were dead right btw.
 
#8
#8
Financial Terrorism Suspected in 08 Economic Crash

Evidence outlined in a Pentagon contractor report suggests that financial subversion carried out by unknown parties, such as terrorists or hostile nations, contributed to the 2008 economic crash by covertly using vulnerabilities in the U.S. financial system.
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The report concluded that the evidence of an attack is strong enough that “financial terrorism may have cost the global economy as much as $50 trillion.”
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The report states that federal authorities must further investigate two significant events in the months leading up to the financial crisis.

The first phase of the economic attack, the report said, was the escalation of oil prices by speculators from 2007 to mid-2008 that coincided with the housing finance crisis.

In the second phase, the stock market collapsed by what the report called a "bear raid" from unidentified sources on Bear Stearns, Lehman Brothers and other Wall Street firms.

"This produced a complete collapse in credit availability and almost started a global depression," Mr. Freeman said.

The third phase is what Mr. Freeman states in the report was the main source of the economic system's vulnerability. "We have taken on massive public debt as the government was the only party who could access capital markets in late 2008 and early 2009," he said, placing the U.S. dollar's global reserve currency status at grave risk.

"This is the 'end game' if the goal is to destroy America," Mr. Freeman said, noting that in his view China's military "has been advocating the potential for an economic attack on the U.S. for 12 years or longer as evidenced by the publication of the book Unrestricted Warfare in 1999."

Additional evidence provided by Mr. Freeman includes the statement in 2008 by Treasury Secretary Henry M. Paulson Jr. that the Russians had approached the Chinese with a plan to dump its holdings of bonds by the federally backed mortgage companies Fannie Mae and Freddie Mac.

Among the financial instruments that may have been used in the economic warfare scenario are credit default swaps, unregulated and untraceable contracts by which a buyer pays the seller a fee and in exchange is paid off in a bond or a loan. The report said credit default swaps are "ideal bear-raid tools" and "have the power to determine the financial viability of companies."

Another economic warfare tool that was linked in the report to the 2008 crash is what is called "naked short-selling" of stock, defined as short-selling financial shares without borrowing them.

The report said that 30 percent to 70 percent of the decline in stock share values for two companies that were attacked, Bear Stearns and Lehman Brothers, were results of failed trades from naked short-selling.
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Usually not one prone to wild conspiracy theories, this article does seem to at least suggest that the "Inside Job" could well have been an "Outside Job". Of note, and not included in the article, is the cyber attack the Chinese carried out on the DoD in 2008, which led to the restriction of any and all USB storage devices being used on military computers.
 
#9
#9
Frank and Dodd are mentioned no where in this report?

Shocking.
 
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