Bin Laden's
First Margin Call?
By David Fuller, editor
Fullermoney
Finally,
oil will remain the key variable. Having soared to $30 (spot
NYME) on 14th September, it then plunged below $22 before steadying
as I completed this issue. News services attributed the slide
to OPEC's inability to maintain higher prices now that demand
has slumped, particularly for airline fuel. I believe there could
be another factor behind oil's sudden weakness. Bundesbank president
and ECB Governing Council Member, Ernst Welteke, announced on
22nd September that he was investigating some unusual market
moves just before the attacks on the 11th, because "It is
becoming ever more obvious that there must have been activities
in international financial centres carried out by players who
have the necessary professional knowledge". In other words,
he is talking about the ultimate insider trading. Shortly after
the attacks, when I first heard about the selling of airline
and insurance stocks, I was skeptical about rumours that terrorists
may have been involved. However, there was too much evidence
of unusual activity for these and other sectors likely to be
affected for this to be dismissed as entirely coincidental. Bin
Laden's al-Qaida organisation has been recruiting for years.
A number of these people would have known of the imminent attacks,
in addition to the 19 terrorists who hijacked and crashed the
planes. Events under scrutiny, in addition to short selling of
airline and insurance stocks, include the purchase of put options
for these shares and also stock market futures, and Welteke also
mentioned increased buying of oil and gold futures. He added,
"Before the attacks, we had a rise in oil prices which cannot
be explained by fundamental data. That may mean that people bought
oil contracts, which they later sold at a higher price."
Or, assuming Welteke is right about terrorists trying to profit
from their crimes via the markets, perhaps they didn't sell in
time. Did al-Qaida operatives receive their first margin call
and panic? Wouldn't that be a little bit divine retribution!
Editor's Note: David
Fuller is editor of Fullermoney, Suite 1.21, Plaza 535
Kings Road, London SW10 0SZ, United Kingdom. Monthly, £35
single issue.
