{"id":26920,"date":"2017-10-16T20:46:38","date_gmt":"2017-10-17T01:46:38","guid":{"rendered":"http:\/\/olduvai.ca\/?p=26920"},"modified":"2017-10-16T20:46:38","modified_gmt":"2017-10-17T01:46:38","slug":"pentagon-worried-about-hackers-causing-stock-market-crash","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=26920","title":{"rendered":"Pentagon Worried about Hackers Causing Stock Market Crash"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"https:\/\/wolfstreet.com\/2017\/10\/15\/pentagon-worried-about-hackers-causing-stock-market-crash\/\">Pentagon Worried about Hackers Causing Stock Market Crash<span style=\"color: #333333; font-size: 16px;\"><\/span><\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<p><strong>The <em>Pentagon?!<\/em> But no one\u2019s worried when stocks get manipulated <em>higher<\/em>.<\/strong><\/p>\n<p>It\u2019s funny, the all-out government effort to prevent a major decline of the stock market, or of individual stocks, via manipulation or hacking. Now even the Pentagon is looking into it.<\/p>\n<p>What\u2019s funny is that everyone cheers when manipulation, hacking, and other shenanigans cause the market or individual stocks to soar. It\u2019s just declines they\u2019re worried about at these precarious levels.<\/p>\n<p>Manipulating stocks higher is a time-honored game that routinely receives kudos from all around. The Fed printed nearly $4 trillion and cut rates to zero for eight years \u2013 no matter what the damage to the real economy \u2013 for the sole purpose of manipulating up asset prices including stock prices. \u201cWealth effect,\u201d Ben Bernanke <a href=\"http:\/\/www.washingtonpost.com\/wp-dyn\/content\/article\/2010\/11\/03\/AR2010110307372.html\">called it<\/a>. Corporate executives and analysts exaggerate future earnings only to deflate them at the last minute, because stock prices are \u201cforward looking\u201d and fake future earnings is all that matters, even if reality <em>now<\/em> sucks. And on and on. Whatever it takes to push stock prices up, by hook or crook, is cool. These are our heroes.<\/p>\n<p>But when some lonely dude might hack into high-speed stock trading systems or spook the trading algos, quant-fund managers, and high-speed traders and throw algorithmic trading off track to where prices might <em>actually fall<\/em> in a major way, all heck breaks loose, and the Pentagon feels empowered to step in.<\/p>\n<p>Trading by automated systems, such as used by quant funds and high-speed traders, is beginning to <a href=\"https:\/\/wolfstreet.com\/2017\/05\/22\/can-quant-funds-trigger-a-sudden-fiasco-in-stocks\/\" target=\"_blank\" rel=\"noopener\">dominate stock trading<\/a>. The risk of hacking into those systems or manipulating those systems in other ways is a real issue \u2013 but it should cut both ways. And the systems themselves are designed to manipulate prices, so\u2026.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Pentagon Worried about Hackers Causing Stock Market Crash The Pentagon?! But no one\u2019s worried when stocks get manipulated higher. It\u2019s funny, the all-out government effort to prevent a major decline of the stock market, or of individual stocks, via manipulation or hacking. Now even the Pentagon is looking into it. What\u2019s funny is that everyone [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[4884,16537,3225,620,1138,4254,4255],"class_list":["post-26920","post","type-post","status-publish","format-standard","hentry","category-economics","tag-cyberwarfare","tag-drape","tag-hackers","tag-pentagon","tag-stock-market","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26920"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26920\/revisions"}],"predecessor-version":[{"id":26921,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26920\/revisions\/26921"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}