Can a stock market crash be engineered ?

The premise is the opposition will 'engineer' a stock market crash leaving the economy worse off and the net result is BJP is kicked out. Why isn't Modi doing anything. He has only two months left to avert this 'crisis'

heh, so not only liberals have their scare stories.

For some context

https://www.moneylife.in/article/high-frequency-trading-needs-a-detailed-probe/42620.html

After five months of silence, multiple agencies have woken up to the possible dangers of large-scale market manipulation by large institutional traders who run high-frequency trading (HFT) programmes in India.

That was back in Jul 2015. So somebody said to do something

https://www.waterstechnology.com/wa...the-hft-algo-trading-debate-quickens-in-india

The idea of HFT is to increase liqiuidity, other asian markets also want them for the same reason because other than Japan or China other asian stock exchanges are small

“The main benefit of HFT would be the creation of more liquidity,” “If it is hard to buy and sell, then institutional investors will see the risk of being stuck with positions longer than they want. This is definitely not the only factor in question for encouraging institutional investment, but anything that helps tighten spreads and improve liquidity is important.”
This has bearing on the exchange rate. If people pull out the rupee weakens. If they enter it strengthens. But its all hot money meaning it can leave at any time. This introduces problems of its own like happened in Malaysia in 1997, people pulled out the economy crashed. I'm certain we've got safeguards in place to protect against.


https://ultra.news/s-e/36344/sebi-algo-trading-iit-bombay

SEBI was forced to step in to regulate following allegations that the National Stock Exchange or NSE was giving an unfair edge to certain players by facilitating quicker access to these players to ‘tick by tick’ data.

Jan this year. They want to regulate it for fairness.

https://www.thehindubusinessline.co...ebi-in-catch-22-situation/article24049453.ece

End of may

The probe agency has accused SEBI officials of collusion with a stock broker who along with NSE officials indulged in fraud, criminal conspiracy and destruction of digital evidence.
 
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He is talking bull$hit. Everyone does HFT. I have seen it in Australia and in USA. They setup high performance fiber optic networks to reduce latencies and then do trading on patterns. it is all pure mathematics and statistics. HFT strategies are usually devised by people who have PhDs in statistics. they are suggesting that pattern trading should be made illegal.
btw; I know a lot about casinos and I can guarantee you that casinos are highly regulated. they are always rigged/never rigged on how you look at it. Every slot game has to go through RTP(return to player) testing before it can be put into production.
casually explained gives a funny intro to patterns calling it isosceles buffet, bullish bill.
 
That premise sounds like that Pakistan is involved in Gujarat elections that Modiji boasted about and forgot after winning the elections
 
I know a lot about casinos and I can guarantee you that casinos are highly regulated.
That isn't the case in India wrt to HFT right now. SEBI is working with IIT Bombay to come up with some way to regulate it better

they are suggesting that pattern trading should be made illegal.
Illegal or better regulated isn't specified but the former is being implied by Nalapat

On the basis that some parties are profiting more than others. And they are saying that it takes place because of a loophole created by the last govt when using participatory notes. It means the creditors can remain anonymous. The opposition has a lot of money stashed abroad and hence can play the system. That's what i've understood so far.

It's funny how both Congress & BJP accuse the other of having funds sufficient to throw elections. Heard lots about how BJP could do it in Karnataka, here the allegation is Congress can crash the stock exchange for their own ends.

https://www.sundayguardianlive.com/news/officials-look-pm-modi-rescue-economy-toxic-cabal

Read his write-up in the Sunday Guardian which is more descriptive. Anyone here want to challenge what's in it ?

That video was hilarious btw :D
 
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Read the article, the contention is HFT has been used to advantage by some over others. And this has given them plenty of windfall already.
analogy to this would be claiming that Ferrari has unfair advantage in F1 racing and asking it to slow down. no one is insider trading here which is illegal. it is pure mathematics.
 
In theory engineered market crush is possible. Small economies are very sensitive to such development. But I am not sure how realistic it would be for any large economy like US or EU where is concentrated majority of worlds equities. Somebody would need to be but really, really rich person
 
All stock markets are an elaborate scam to concentrate wealth to the top. People who look at technical analysis with fancy terms are the most duped people, there is no market based on fundamentals anymore.
The US stock market has had a bull run for the last 10 years all based on the FED's ZIRP and QE policy (both of which have ended) where they propped up the rigged markets up with money backed by thin air. A stock market correction is on its way already, one look at FAANG stock values and the likes of Nvidia over the last 3 months should give you the picture of what's in store.
All this China trade war, Syria and Afghan troop pullout. Clinton foundation investigations, internal govt. strife and the ongoing govt. shutdown is to continue to keep US Americans in the delusion that Trump will MAGA, he was chosen to be the fall guy long before he even came into politics. When the likes of Alan Greenspan come out of the woodwork to announce that the US bull market is done, it's time to take notice.

The top 1% rigged the system from the get go, it's all smoke and mirrors to fleece the sheep and the plug has been pulled by the banksters sometime ago..
It's a gradual slide to the bottom where the globalists will gain more control of corporations, when "economists" show up en masse announcing a possible recession in 2019/2020, it means that it has already begun and well under way.
It's the same strategy over and over and over again, they sell out of the over-inflated and over-valued market all the way to the top, wait with a pile of cash on the sidelines, tank the markets and swoop in to pick it up for pennies on the dollar while the sheeple are left scratching their head as usual, it's a brilliant plan tbh.

Ofc it will end up having effects on our own, it's the same script here as well. All this rift between the RBI and central govt. and the untimely resignation of Urjit Patel is to sell the illusion that this compromised govt. and the central bankster installed by corporate interests aren't working in tandem to make life more miserable.
It's all a setup to play the blame game and point fingers at others when sh*t hits the fan before elections.

 
It's all a setup to play the blame game and point fingers at others when sh*t hits the fan before elections.
Six months after i created this thread i can tell you when the stock market will crash.

It won't be before the elections.

Instead, it will be after should Congress win, otherwise if BJP wins then we're due a rally because policy stability, less uncertainty. FII's stay put etc :)

Now if something happens before the elections that gives the stock market jitters for whatever reason it could tank but i cannot think of such a scenario.

A bad budget ? one so full of sops for electoral purposes that disappoints the economists. Dunno.

Hence going with crash after if a else rally

Rupee was supposed to be 100 to the dollar by now wasn't it what with these Iran sanctions etc. But it's been stable.
 
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