5 ms·
Serious question: Is this even actually a thing that happens? I mean, obviously, it stands to reason that the right actor with the right investment portfolio a
by dbatten 9y ago
Serious question: Is this even actually a thing that happens?
I mean, obviously, it stands to reason that the right actor with the right investment portfolio and control of the right media outlets could pull something like this off, but it seems that there are very, very few people/companies in that position.
In fact, the Jeff Bezos / WaPo / Amazon nexus is perhaps the only example I can think of where this sort of thing is even possible, let alone carried out.
Do you have examples? I'd genuinely love to learn.
- sliverstorm 9y agoI don't have handy documented examples of private individuals successfully manipulating the market with news, but supposedly during the '07 crash the banks had the rating agencies keep the ratings for the collapsing subprime MBS's dishonestly high long enough for the banks to get out of their subprime MBS positions. Not exactly the same but very similar. https://en.wikipedia.org/wiki/Subprime_mortgage_crisis#Inaccurate_credit_ratings https://en.wikipedia.org/wiki/Subprime_mortgage_crisis#Inacc...
- indubitable 9y agoThe higher level you go, the less incentive there is. Take things down to a much lower level. For instance consider the ImClone insider trading case. Martha Stewart was a well known (among certain demographics) television personality, was on the board of directors of the New York Stock Exchange, and more. She risked, and lost, all that and ended up going to prison for acting on inside information. Her total gain was $45,673... I think it's easiest to logically consider everything in reverse. Let's assume you're correct, that this sort of thing never happens. So that entails two possibilities. The first: - No reporters, or individuals with the ability to influence what is written, have vested interests. I think the above can be pretty easily dismissed as false. But if it's false we can assume at least some people have vested interests. Which leads to the next possibility: - Those with vested interests choose to never actively utilize their position to further their interests And again, I think we can pretty safely declare that's false. So it's not a matter of does it happen, but to what scale it happens. And that is going to be pure speculation. Although it would logically follow that the more people that a vested interest in event x, the more common the occurrence of biased media in favor of provoking x would be expected to be seen.
- tanderson92 9y ago> She risked, and lost, all that and ended up going to prison for acting on inside information That is not why she went to prison.
- doingmyting 9y agoI thought she went to prison for selling 200K of ImClone stock based on advice she got from one of the founders after ImClone failed to get FDA approval for their drug. What am I missing?
- r00fus 9y agoPray tell, why then?
- Coffeewine 9y agohttp://www.nytimes.com/2004/07/17/business/martha-stewart-s-sentence-overview-5-months-jail-stewart-vows-ll-be-back.html http://www.nytimes.com/2004/07/17/business/martha-stewart-s-... > for lying to federal investigators about a stock sale that she called ''a small personal matter.''
- diziet 9y agoThe charge (amongst others) that caused her to serve time in jail was 18 U.S.C. § 1001 (making false statements to federal investigators). The why was most likely insider trading allegations.
- jimminy 9y agoIt happened just a few weeks ago with Shopify and the Citron Report. The Citron Report's author often finds stocks that have gone up, places shorts, and then promotes the idea that these companies are scams with no fundamental value. He's made a considerable amount of money doing this.
- jacquesm 9y agoThat should land you in jail.
- agumonkey 9y agoInteresting, I didn't know that. Does this have a name ? a reverse insider fraud ?
- jacquesm 9y agohttps://en.wikipedia.org/wiki/Market_manipulation https://en.wikipedia.org/wiki/Market_manipulation
- agumonkey 9y agoWow, there are quite a number of tricks to monitor. I don't know how they handle it in reality. This seems a clear case of bashing .. and if so, it means the article is a compliment to AMD.
- mquander 9y agoNo it shouldn't. The entire liquid stock market exists to make it possible for people to identify incorrect prices and make money by correcting them.
- sliverstorm 9y agoMarket manipulation through pseudo-libel is not quite the same thing as ordinary price discovery.
- jacamat 9y agoliterally how the press works..