SEC: Government Destroyed Documents Regarding Pre-9/11 Put Options → Washingtons Blog
SEC: Government Destroyed Documents Regarding Pre-9/11 Put Options - Washingtons Blog

Monday, June 14, 2010

SEC: Government Destroyed Documents Regarding Pre-9/11 Put Options

On September 19, 2001, CBS reported:

Sources tell CBS News that the afternoon before the attack, alarm bells were sounding over unusual trading in the U.S. stock options market.

An extraordinary number of trades were betting that American Airlines stock price would fall.

The trades are called "puts" and they involved at least 450,000 shares of American. But what raised the red flag is more than 80 percent of the orders were "puts", far outnumbering "call" options, those betting the stock would rise.

Sources say they have never seen that kind of imbalance before, reports CBS News Correspondent Sharyl Attkisson. Normally the numbers are fairly even.

After the terrorist attacks, American Airline stock price did fall obviously by 39 percent, and according to sources, that translated into well over $5 million total profit for the person or persons who bet the stock would fall.


At least one Wall Street firm reported their suspicions about this activity to the SEC shortly after the attack.

The same thing happened with United Airlines on the Chicago Board Options Exchange four days before the attack. An extremely unbalanced number of trades betting United's stock price would fall — also transformed into huge profits when it did after the hijackings.

"We can directly work backwards from a trade on the floor of the Chicago Board Options Exchange. The trader is linked to a brokerage firm. The brokerage firm received the order to buy that 'put' option from either someone within a brokerage firm speculating, or from one of the customers," said Randall Dodd of the Economic Strategy Institute.

U.S. investigators want to know whether Osama bin Laden was the ultimate "inside trader" — profiting from a tragedy he's suspected of masterminding to finance his operation. Authorities are also investigating possibly suspicious trading in Germany, Switzerland, Italy and Japan.
On September 29, 2001, the San Francisco Chronicle pointed out:

"Usually, if someone has a windfall like that, you take the money and run," said the source, who spoke on condition of anonymity. "Whoever did this thought the exchange would not be closed for four days.

"This smells real bad."


There was an unusually large jump in purchases of put options on the stocks of UAL Corp. and AMR Corp. in the three business days before the attack on major options exchanges in the United States. On one day, UAL put option purchases were 25 times greater than the year-to-date average. In the month before the attacks, short sales jumped by 40 percent for UAL and 20 percent for American.


Spokesmen for British securities regulators and the AXA Group also confirmed yesterday that investigations are continuing.

The source familiar with the United trades identified Deutsche Banc Alex. Brown, the American investment banking arm of German giant Deutsche Bank, as the investment bank used to purchase at least some of the options.


Last weekend, German central bank president Ernst Welteke said a study pointed to "terrorism insider trading" in those stocks.
The Chronicle illustrated the story with the following chart:

On October 19, 2001, the Chronicle wrote:

On Oct. 2, Canadian securities officials confirmed that the SEC privately had asked North American investment firms to review their records for evidence of trading activity in the shares of 38 companies, suggesting that some buyers and sellers might have had advance knowledge of the attacks.


FMR Corp. spokeswoman Anne Crowley, said her firm -- which owns the giant Fidelity family of mutual funds in Boston -- has already provided "account and transaction" information to investigators, and had no objection to the new procedures announced yesterday. Crowley declined to describe the nature of the information previously shared with the government.

So the effort to track down the source of the puts was certainly quite substantial.

What were the results and details of the investigation?

Apparently, we'll never know.

Specifically, David Callahan - executive editor of SmartCEO - submitted a Freedom of Information Act request to the SEC regarding the pre-9/11 put options.

The SEC responded:
This letter is in response to your request seeking access to and copies of the documentary evidence referred to in footnote 130 of Chapter 5 of the September 11 (9/11) Commission Report.


We have been advised that the potentially responsive records have been destroyed.
If the SEC had responded by producing documents showing that the pre-9/11 put options had an innocent explanation (such as a hedge made by a smaller airline), that would be understandable.

If the SEC had responded by saying that the documents were classified as somehow protecting proprietary financial information, I wouldn't like it, but I would at least understand the argument.

But destroyed? Why? (See Afterword for additional details.)

Not the First Time

This is not the first destruction of documentary evidence related to 9/11.

I wrote in March:

As I pointed out in 2007:
The 9/11 Commission Report was largely based on a third-hand account of what tortured detainees said, with two of the three parties in the communication being government employees.

The official 9/11 Commission Report states:

Chapters 5 and 7 rely heavily on information obtained from captured al Qaeda members. A number of these "detainees" have firsthand knowledge of the 9/11 plot. Assessing the truth of statements by these witnesses-sworn enemies of the United States-is challenging. Our access to them has been limited to the review of intelligence reports based on communications received from the locations where the actual interrogations take place. We submitted questions for use in the interrogations, but had no control over whether, when, or how questions of particular interest would be asked. Nor were we allowed to talk to the interrogators so that we could better judge the credibility of the detainees and clarify ambiguities in the reporting.

In other words, the 9/11 Commissioners were not allowed to speak with the detainees, or even their interrogators. Instead, they got their information third-hand.

The Commission didn't really trust the interrogation testimony. For example, one of the primary architects of the 9/11 Commission Report, Ernest May, said in May 2005:

We never had full confidence in the interrogation reports as historical sources.
As I noted last May:

Newsweek is running an essay by [New York Times investigative reporter] Philip Shenon saying [that the 9/11 Commission Report was unreliable because most of the information was based on the statements of tortured detainees]:

The commission appears to have ignored obvious clues throughout 2003 and 2004 that its account of the 9/11 plot and Al Qaeda's history relied heavily on information obtained from detainees who had been subjected to torture, or something not far from it.

The panel raised no public protest over the CIA's interrogation methods, even though news reports at the time suggested how brutal those methods were. In fact, the commission demanded that the CIA carry out new rounds of interrogations in 2004 to get answers to its questions.

That has troubling implications for the credibility of the commission's final report. In intelligence circles, testimony obtained through torture is typically discredited; research shows that people will say anything under threat of intense physical pain.

And yet it is a distinct possibility that Al Qaeda suspects who were the exclusive source of information for long passages of the commission's report may have been subjected to "enhanced" interrogation techniques, or at least threatened with them, because of the 9/11 Commission....

Information from CIA interrogations of two of the three—KSM and Abu Zubaydah—is cited throughout two key chapters of the panel's report focusing on the planning and execution of the attacks and on the history of Al Qaeda.

Footnotes in the panel's report indicate when information was obtained from detainees interrogated by the CIA. An analysis by NBC News found that more than a quarter of the report's footnotes—441 of some 1,700—referred to detainees who were subjected to the CIA's "enhanced" interrogation program, including the trio who were waterboarded.

Commission members note that they repeatedly pressed the Bush White House and CIA for direct access to the detainees, but the administration refused. So the commission forwarded questions to the CIA, whose interrogators posed them on the panel's behalf.

The commission's report gave no hint that harsh interrogation methods were used in gathering information, stating that the panel had "no control" over how the CIA did its job; the authors also said they had attempted to corroborate the information "with documents and statements of others."

But how could the commission corroborate information known only to a handful of people in a shadowy terrorist network, most of whom were either dead or still at large?

Former senator Bob Kerrey of Nebraska, a Democrat on the commission, told me last year he had long feared that the investigation depended too heavily on the accounts of Al Qaeda detainees who were physically coerced into talking ....

Kerrey said it might take "a permanent 9/11 commission" to end the remaining mysteries of September 11.

Abu Zubaida was well-known to the FBI as being literally crazy. The Washington Post quotes "FBI officials, including agents who questioned [alleged Al-Qaeda member Abu Zubaida] after his capture or reviewed documents seized from his home" as concluding that he was:
[L]argely a loudmouthed and mentally troubled hotelier whose credibility dropped as the CIA subjected him to a simulated drowning technique known as waterboarding and to other "enhanced interrogation" measures.
For example:

Retired FBI agent Daniel Coleman, who led an examination of documents after Abu Zubaida's capture in early 2002 and worked on the case, said the CIA's harsh tactics cast doubt on the credibility of Abu Zubaida's information.

"I don't have confidence in anything he says, because once you go down that road, everything you say is tainted," Coleman said, referring to the harsh measures. "He was talking before they did that to him, but they didn't believe him. The problem is they didn't realize he didn't know all that much."


"They said, 'You've got to be kidding me,' " said Coleman, recalling accounts from FBI employees who were there. " 'This guy's a Muslim. That's not going to win his confidence. Are you trying to get information out of him or just belittle him?'" Coleman helped lead the bureau's efforts against Osama bin Laden for a decade, ending in 2004.

Coleman goes on to say:
Abu Zubaida ... was a "safehouse keeper" with mental problems who claimed to know more about al-Qaeda and its inner workings than he really did.


Looking at other evidence, including a serious head injury that Abu Zubaida had suffered years earlier, Coleman and others at the FBI believed that he had severe mental problems that called his credibility into question. "They all knew he was crazy, and they knew he was always on the damn phone," Coleman said, referring to al-Qaeda operatives. "You think they're going to tell him anything?"

ACLU, FireDogLake's Marcy Wheeler and RawStory broke the story yesterday that (quoting RawStory):

Senior Bush administration officials sternly cautioned the 9/11 Commission against probing too deeply into the terrorist attacks of September 11, 2001, according to a document recently obtained by the ACLU.

The notification came in a letter dated January 6, 2004, addressed by Attorney General John Ashcroft, Defense Secretary Donald H. Rumsfeld and CIA Director George J. Tenet. The ACLU described it as a fax sent by David Addington, then-counsel to former vice president Dick Cheney.

In the message, the officials denied the bipartisan commission's request to question terrorist detainees, informing its two senior-most members that doing so would "cross" a "line" and obstruct the administration's ability to protect the nation.

"In response to the Commission's expansive requests for access to secrets, the executive branch has provided such access in full cooperation," the letter read. "There is, however, a line that the Commission should not cross -- the line separating the Commission's proper inquiry into the September 11, 2001 attacks from interference with the Government's ability to safeguard the national security, including protection of Americans from future terrorist attacks."


"The Commission staff's proposed participation in questioning of detainees would cross that line," the letter continued. "As the officers of the United States responsible for the law enforcement, defense and intelligence functions of the Government, we urge your Commission not to further pursue the proposed request to participate in the questioning of detainees."

Destruction of Evidence

The interrogators made videotapes of the interrogations. The 9/11 Commission asked for all tapes, but the CIA lied and said there weren't any.

The CIA then destroyed the tapes.

Specifically, the New York Times confirms that the government swore that it had turned over all of the relevant material regarding the statements of the people being interrogated:

“The commission did formally request material of this kind from all relevant agencies, and the commission was assured that we had received all the material responsive to our request,” said Philip D. Zelikow, who served as executive director of the Sept. 11 commission ....

“No tapes were acknowledged or turned over, nor was the commission provided with any transcript prepared from recordings,” he said.

But is the destruction of the tapes -- and hiding from the 9/11 Commission the fact that the tapes existed -- a big deal? Yes, actually. As the Times goes on to state:
Daniel Marcus, a law professor at American University who served as general counsel for the Sept. 11 commission and was involved in the discussions about interviews with Al Qaeda leaders, said he had heard nothing about any tapes being destroyed.

If tapes were destroyed, he said, “it’s a big deal, it’s a very big deal,” because it could amount to obstruction of justice to withhold evidence being sought in criminal or fact-finding investigations.

Indeed, 9/11 Commission co-chairs Thomas Keane and Lee Hamilton wrote:
Those who knew about those videotapes — and did not tell us about them — obstructed our investigation.
The CIA also is refusing to release any transcripts from the interrogation sessions. As I wrote a year ago:

What does the fact that the CIA destroyed numerous videotapes of Guantanamo interrogations, but has 3,000 pages of transcripts from those tapes really mean?

Initially, it means that CIA's claim that it destroyed the video tapes to protect the interrogators' identity is false. Why? Well, the transcripts contain the identity of the interrogator. And the CIA is refusing to produce the transcripts.

Obviously, the CIA could have "blurred" the face of the interrogator and shifted his voice (like you've seen on investigative tv shows like 60 Minutes) to protect the interrogator's identity. And since the CIA is not releasing the transcripts, it similarly could have refused to release the videos.

The fact that the CIA instead destroyed the videos shows that it has something to hide.

Trying to Create a False Linkage?

I have repeatedly pointed out that the top interrogation experts say that torture doesn't work.

As I wrote last May:

The fact that people were tortured in order to justify the Iraq war by making a false linkage between Iraq and 9/11 is gaining attention.

Many people are starting to understand that top Bush administration officials not only knowingly lied about a non-existent connection between Al Qaida and Iraq, but they pushed and insisted that interrogators use special torture methods aimed at extracting false confessions to attempt to create such a false linkage.

Indeed, the Senate Armed Services Committee found that the U.S. used torture techniques specifically aimed at extracting false confessions (and see this).

And as Paul Krugman wrote in the New York Times:

Let’s say this slowly: the Bush administration wanted to use 9/11 as a pretext to invade Iraq, even though Iraq had nothing to do with 9/11. So it tortured people to make them confess to the nonexistent link.

[A]ccording to NBC news:
  • Much of the 9/11 Commission Report was based upon the testimony of people who were tortured
  • At least four of the people whose interrogation figured in the 9/11 Commission Report have claimed that they told interrogators information as a way to stop being "tortured."
  • One of the Commission's main sources of information was tortured until he agreed to sign a confession that he was NOT EVEN ALLOWED TO READ
  • The 9/11 Commission itself doubted the accuracy of the torture confessions, and yet kept their doubts to themselves
In fact, the self-confessed "mastermind" of 9/11 also confessed to crimes which he could not have committed. He later said that he gave the interrogators a lot of false information - telling them what he thought they wanted to hear - in an attempt to stop the torture. We also know that he was heavily tortured specifically for the purpose of trying to obtain false information about 9/11 - specifically, that Iraq had something to do with it.


Remember, as discussed above, the torture techniques used by the Bush administration to try to link Iraq and 9/11 were specifically geared towards creating false confessions (they were techniques created by the communists to be used in show trials).


The above-linked NBC news report quotes a couple of legal experts to this effect:

Michael Ratner, president of the Center for Constitutional Rights, says he is "shocked" that the Commission never asked about extreme interrogation measures.

"If you’re sitting at the 9/11 Commission, with all the high-powered lawyers on the Commission and on the staff, first you ask what happened rather than guess," said Ratner, whose center represents detainees at Guantanamo. "Most people look at the 9/11 Commission Report as a trusted historical document. If their conclusions were supported by information gained from torture, therefore their conclusions are suspect."...
Karen Greenberg, director of the Center for Law and Security at New York University’s School of Law, put it this way: "[I]t should have relied on sources not tainted. It calls into question how we were willing to use these interrogations to construct the narrative."
The interrogations were "used" to "construct the narrative" which the 9/11 Commission decided to use.

Remember (as explored in the book The Commission by respected journalist Philip Shenon), that the Executive Director of the 9/11 Commission was an administration insider whose area of expertise is the creation and maintenance of "public myths" thought to be true, even if not actually true. He wrote an outline of what he wanted the report to say very early in the process, controlled what the Commission did and did not analyze, then limited the scope of the Commission's inquiry so that the overwhelming majority of questions about 9/11 remained unasked (see this article and this article).


As constitutional law expert Jonathan Turley stated:

[The 9/11 Commission] was a commission that was really made for Washington - a commission composed of political appointees of both parties that ran interference for those parties - a commission that insisted at the beginning it would not impose blame on individuals.

Other Obstructions of Justice

[Other examples of obstructions of justice include the following:]
  • The chairs of both the 9/11 Commission and the Joint Inquiry of the House and Senate Intelligence Committees into 9/11 said that government "minders" obstructed the investigation into 9/11 by intimidating witnesses
  • The 9/11 Commissioners concluded that officials from the Pentagon lied to the Commission, and considered recommending criminal charges for such false statements
  • Investigators for the Congressional Joint Inquiry discovered that an FBI informant had hosted and even rented a room to two hijackers in 2000 and that, when the Inquiry sought to interview the informant, the FBI refused outright, and then hid him in an unknown location, and that a high-level FBI official stated these blocking maneuvers were undertaken under orders from the White House. As the New York Times notes:
    Senator Bob Graham, the Florida Democrat who is a former chairman of the Senate Intelligence Committee, accused the White House on Tuesday of covering up evidence . . .

    * * *

    The accusation stems from the Federal Bureau of Investigation's refusal to allow investigators for a Congressional inquiry and the independent Sept. 11 commission to interview an informant, Abdussattar Shaikh, who had been the landlord in San Diego of two Sept. 11 hijackers.

    In his book "Intelligence Matters," Mr. Graham, the co-chairman of the Congressional inquiry with Representative Porter J. Goss, Republican of Florida, said an F.B.I. official wrote them in November 2002 and said "the administration would not sanction a staff interview with the source.'' On Tuesday, Mr. Graham called the letter "a smoking gun" and said, "The reason for this cover-up goes right to the White House."

We don't need to even discuss conspiracy theories about what happened on 9/11 to be incredibly disturbed about what happened after: the government's obstructions of justice.

Indeed, the 9/11 Commissioners themselves are disturbed:
  • The Commission's co-chairs said that the CIA (and likely the White House) "obstructed our investigation"
  • The Senior Counsel to the 9/11 Commission (John Farmer) - who led the 9/11 staff's inquiry - said "At some level of the government, at some point in time...there was an agreement not to tell the truth about what happened". He also said "I was shocked at how different the truth was from the way it was described .... The tapes told a radically different story from what had been told to us and the public for two years.... This is not spin. This is not true."
Afterword: Footnote 130 to chapter 5 of the official 9/11 Commission Report states:
Highly publicized allegations of insider trading in advance of 9/11 generally rest on reports of unusual pre-9/11 trading activity in companies whose stock plummeted after the attacks. Some unusual trading did in fact occur, but each such trade proved to have an innocuous explanation. For example, the volume of put options- investments that pay off only when a stock drops in price-surged in the parent companies of United Airlines on September 6 and American Airlines on September 10-highly suspicious trading on its face. Yet, further investigation has revealed that the trading had no connection with 9/11. A single U.S.-based institutional investor with no conceivable ties to al Qaeda purchased 95 percent of the UAL puts on September 6 as part of a trading strategy that also included buying 115,000 shares of American on September 10. Similarly, much of the seemingly suspicious trading in American on September 10 was traced to a specific U.S.-based options trading newsletter, faxed to its subscribers on Sunday, September 9, which recommended these trades. These examples typify the evidence examined by the investigation. The SEC and the FBI, aided by other agencies and the securities industry, devoted enormous resources to investigating this issue, including securing the cooperation of many foreign governments. These investigators have found that the apparently suspicious consistently proved innocuous. Joseph Cella interview (Sept. 16, 2003; May 7, 2004; May 10-11, 2004); FBI briefing (Aug. 15, 2003); SEC memo, Division of Enforcement to SEC Chair and Commissioners, "Pre-September 11, 2001 Trading Review," May 15, 2002; Ken Breen interview (Apr. 23, 2004); Ed G. interview (Feb. 3, 2004).
Did the Commission have full access to information regarding put options? Was the Commission misled, as it was on other issues? Was evidence destroyed or fabricated? We will never know, as the underlying documents have - according to the SEC - been destroyed.


  1. If you had been following the markets at the time, it was the consensus that the airline industry was heading for a crack up, 9/11 notwithstanding. Numerous investors were short selling American, United, et al.

    The put story is wrongheaded in so many ways. For every buyer of a put there is also a seller. The seller of a put bets the price of the underlying stock is going up, the buyer believes the price is going down. By your paranoid reasoning we can also theorize that the sellers had some secret info that either the airlines weren't headed for bankruptcy or that 9/11 wasn't going to happen. Having a great deal of open interest in puts or calls means nothing except that the underlying stock has been getting a lot of press.

  2. By the way, trading records are legally required to be kept the SEC and member firms for seven years. So if you wonder why the records had been destroyed by 2009, adding seven to 2001 means that all the records, everywhere for every trade in 2001, was dropped in the shredder or electronically deleted in 2008.

  3. plenty of digital copies exist of this explosive information

    for MANY different reasons

  4. Jardinero1, so you think that evidence potentially related to major criminal events - the largest mass murder in American history - is just going to be routinely shredded like old tax records? Guess again. The level of put option trading against those particular airlines before 9/11 was in no way routine, and wildly above anything that could be considered normal.
    Which makes me wonder why YOU are trying so hard to normalize it.

  5. I was following the markets at the time and knew that there was going to be a significant market crash by October 2001. However, if you go through most of the financial news reports at the time, the media was not reporting anything about an imminent collapse (conveniently blamed on 9-11) and they were silent about the missing $2.3 trillion from the DoD.

    I regularly scanned message boards for information about the coming "correction" and very few people were aware of what was about to happen.

    Furthermore, Jardinero, the put options were out of whack and only on United and American. There were very few put options placed on Continental or America West and tose fell within normal trading patterns.

    To date, one million dollars from the sale of these put options have not been claimed. The buyer of these put options was an Israeli investment company. Go figure. So while a few people on Wall Street know that the Israeli's were involved in the trades, the government claims they just don't know. No one can open a secret trading account. There has to be a trail somewhere. There is a trail, hence the reason the corrupt and rotten to the core SEC destroyed the evidence.

  6. Thanks for writing about 9-11 again. I hope you continue. The proof that 9-11 was an inside job is solid and conclusive. WTC7 dropped at the rate of free fall. This can only happen if the falling structure encounters no resistance. Obviously, a steel frame designed to support many times its own weight as well as withstand hurricane force winds can not crush itself under its own weight - especially not at the rate of free fall and with near perfect symmetry. This was a perfectly executed and obvious controlled demolition, and the corporate media's silence is unconscionable.

    See and

  7. The author of the story doesn't appear to understand options. I work in the brokerage industry and the put story generates a great big shrug of the shoulders with me. Option open interest can be and usually is very lopsided towards either puts or calls depending on the type of buzz the underlying stock is getting. The amounts mentioned are not that extraordinary. So what?

    If the open interest had been lopsided towards calls, would that have raised any hackles? A call seller makes as much money off a falling stock price as a put buyer does. Wouldn't someone with foreknowledge of 9/11 and wanting to cover his tracks have sold calls and bought an equal number of puts? What about the fool who was on the losing side of those put trades? There had to be a patsy to take on all those losing bets, right? Why not ask him why he took those bets? The whole thing is stupid.

  8. I stopped reading at "Osama Bin Laden"...

    Is it just me, or is feces becoming the new flavour du jour south of the 49th?

    Good Luck.

  9. @Jardinero1

    “I know the guy that went into his broker in San Diego and said ‘cash me out, it’s going down tomorrow.’”

    His “brother worked in the White House.”

    Robert Baer - CIA

  10. Kelly Ann, your statement "one million dollars from the sale of these put options have not been claimed" is pure fiction. Collecting on a put contract is slightly more complex than heading down to the convenience store to cash a lotto ticket.

    To start with, in the case detailed above, the buyer of the put is the one who made the money not the seller. The way the buyer makes the money is by exercising the put on or before the expiration date of the put contract. The way you exercise a put is by making the seller of the put purchase the number of actual shares represented by the put contract(100 shares) at the price specified in the put contract.

    Specifically, the buyer of the contract "puts" his shares of AMR, or UAL to the seller of the contract. The profit occurs in this case because the actual price on the market was much less than the purchase price in the put contract. The put buyer purchases actual shares low in the market and sells them high to the put seller. The put seller gets stuck buying actual shares at a price way above market.

    There are as many as four trading parties involved, put buyer, put seller, actual stock buyer and actual stock seller. Each one can be represented by a different brokerage house so that's four brokerage houses. There is still the CBOE and either the NYSE or the NASDAQ. There's now a total of ten parties, potentially. Each one of those parties will get a trade confirmation with their name and address detailing their part in the deal. The CBOE and the NYSE or the NASDAQ will get trade confirmations detailing all parties with all addresses involved. There is quite a paper trail when it's all done.

  11. Additionally Jardinero1's rationalization is wrongheaded and simply ignorant of basic market concepts.

    These were not puts they were PUT OPTION contracts.

    Put option trades are akin to insurance to protect from HEAVY LOSS. A trader says, "I want the option of dumping this stock if it falls below $45." The broker says, "Ok, for an additional fee of $X, I will guarantee the sale of your stock if it drops below $45."

    There is no buyer of every put as Jardinero1 wrongly states or there would be no put OPTION.

    The broker assumes the risk that there might not be a buyer. The broker makes money when the options aren't exercised. The seller saves his skin when the stock does indeed drop.

  12. And the author of this article -wrote not too far back ( a few weeks ago) that he thought there might be an opportunity to ride Gold up a bit in the market.

    Human nature has many sides, few very pretty.

    All of us are guilty of assuming a super-human persona. It is just not true, -whether we see ourselves as more prescient, more moral, more suspicious, or more in tune with the mythical social psyche, -which does not and cannot exist.


    The reality with which each of must contend is infinitely complex. We know nothing of reality -really. We are all blind, and we are all leading the blind around the deck of a ship caught in frothy seas.

    Until we recognize our own shortcomings right along with identifying the shortcomings of what we see transpiring around us, we are merely part of the problem.

    It is not money that it is the root of all these problems.

    It is what we do with money that is the root of all our problems.

    It also is not knowledge that is the root of all these problems.

    It is what we do with this purported knowledge that is the root of all our problems.

    Clearly, 9-11 was a fraud, and, Osama bin Laden a manufactured Boogieman.

    That is not the lesson though.

    The lesson is, almost everything we are sold in the media (including the DeepWater Horizon oil spill) is a fraud.

    Shut down the media outlets.

    Shut down Wall Street.

    Shut down the government.

    And the problem goes away.

    Participate in any of it, and you merely add to the problem.

  13. The loss of 2.3 billion of DoD funding, the Iraq war as a smoke screen and geology that claims in the middle of todays war in Afghanistan lies over 1 trillion in mineral deposits perhaps the 10 years weve occupied Afganistan secret geological studies using that 2.3 billion have been underway. And what better way to make the public sympathetic than to use the sale of narcotics and the taliban as the scapegoat for our occupation there. Think about it........

  14. Keep up the good work, George! 9-11 truth is key to exposing the evil done in America's name!

  15. 6degrees, as I mentioned in this very thread, I am a broker. I explained very accurately how put contracts work. Read again, call a broker, call ten brokers; they will all explain options the same way I did. If you like to read then purchase or check out "Options as a strategic investment: a comprehensive analysis of listed option strategies" by Lawrence McMilllan. It's my option bible.

    Then stop making things up as you go along.

  16. Just got into this tonight, on the train home.

    Not like it is all current material, or anything, but that is why it is so sad and important.

    Thanks, GW

  17. Jardinero1, it's unlikely that anyone here takes your claim as being a broker as any semblance of authority. You are, afterall, posting on the GW blog, known for eschewing (and annihilating) mainstream paradigms regarding securities and market rhetoric that is espoused by those in your trade.

    You yourself said, "The put seller gets stuck buying actual shares at a price way above market." Your previous statement therefore of, "For every buyer of a put there is also a seller" is misleading to the point that this is just normal activity. The abnormal volume (25x higher) of the trades is indicative of foreknowledge of those like Robert Baer's pals and complete ignorance of the put sellers. - "'I saw put-call numbers higher than I've ever seen in 10 years of following the markets, particularly the options markets,' John Kinnucan, a principal of Broadband Research"

    Unfortunately, your claim of 'pure fiction' is itself pure fiction and can be proven so by simply reading the article you are replying to. Kelly Ann is a little off on the numbers however - in fact $2.5million in airline options profits were unclaimed. Article (again):

    But the airline put options are only part of the story. There was the reinsurance companies, and the investment firms that occupied the Towers that saw heavy options trading immediately before the attacks...

    5yr T-notes were so wack the Secret Service and the SEC were investigating its relationship to the attack. Little hope of finding anything due to "the opaqueness of the market, the most liquid in the world, where billions of dollars of bonds are traded seamlessly on a daily basis." ~WSJ article repost:

    ...Of course - we aren't even getting into the the heaviest of players known to partake in this trading anomaly - Buzzy Krongard, who, coincidentally of course, became executive director of the CIA.

  18. It wasn't just the UAL and AAL put options that alleged broker jardinero1 is trying hard to explain away- there was unusual trading in about 28 different companies/industries affected by the attacks. The recently released SEC report on their investigation does very little in the way of presenting evidence, while engaging in a lot of semantics and word parsing to explain it all away- similar to what jardinero1 is doing

    And it wasn't just the shorting; there was also unusually heavy purchasing of US Treasury Bonds leading up to 9/11; including a single $5 billion trade in early Sept, as reported in the WSJ, in an article which has since been scrubbed from the web. The same article also reported unusual movements in gold and oil. And it's never been explained why the Fed boosted the M3 shortly before 9/11. Also, German central bank president Ernst Welteke reported that a study by his bank found "almost irrefutable proof of insider trading." Sources for these statements and many other indications of 9/11 foreknowledge and related financial dealings here:

  19. For every buyer of a put, there must be a seller. That is obvious. Brokers may or may not hold the option on their book, but if they do, then they are the buyers of the option.

    but simply because there are sellers of puts doesn't mean the sellers are informed. Under normal market conditions (such as the weeks before 9/11), option prices are determined by the underlying price of the share and the implied volatility (as used in Black-Scholes).

    Implied volatility is essentially reversed out of the BS model based on the option price itself. But, most option traders have a concept or a model of where implied vol should be based on historicals and anticipated events and other market vagaries. So they have a good idea of where the price of the options will be under normal market conditions.

    If someone buys a lot of puts, sellers will respond by raising the price. This will lead to either an adjustment in implied volatility in the pricing model or the seller's belief that the buyer is overpaying. The option sellers in this case had no reason to believe there was any specific risk in the collapse of the price of airline shares.

    So, the put sellers thought they were taking some chump (or someone who was getting squeezed) to the cleaners. They sold high priced puts, thinking they would earn a fortune.

    If the option is traded against the exchange, so it doesn't matter to the seller whether or not the option is exercised by the buyer.

  20. The government doesn't want us to know who made the puts. If it was bin Laden, wouldn't they want us to know? The chairman of the 9/11 Commission released a book saying that the commission was lied to by all levels of the government and military. And the Muslim who confesses was waterboarded 130+ times. Dick Cheney, his wife and William Kristol campaign to have the guy tried not in the U.S. criminal justice system but in the military courts. As an attorney for 39 years, I can tell you that the reason is so the defendant's attorneys will not have access to discovery against our government. When the defendants in the 1993 WTC bombing were tried, they had access to discovery and proved that the FBI furnished the bomb material and managed the conspiracy. Google that if you dare. Check out, and if you dare.

  21. “[T]he majority of politicians, on the evidence available to us, are interested not in truth but in power and in the maintenance of that power. To maintain that power it is essential that people remain in ignorance, that they live in ignorance of the truth, even the truth of their own lives. What surrounds us therefore is a vast tapestry of lies, upon which we feed.”
    – Harold Pinter, Nobel Lecture (Literature), 2005

  22. very black water

    busy busy buzzy

  23. Jardinero1,

    You do not understand how option trading works.
    There is usually no one on the other side of the trade who bets on the opposite outcome.

    On the contrary the option seller manufactures the option by dynamic hedging and has no opinion on the direction of the market.

  24. Thank you for continuing to keep the questions about 9/11 alive. I hope a permanent commission will be created so that the truth can be finally known. Not only WTC7, but also towers I and II fell at free-fall speeds, which can only be explained by the use of explosives (there is evidence of thermite in the dust), which can only be explained as an inside job of some sort. Please keep writing about this issue!

  25. Note that people were trying to get these documents every day, from 12-9-2001 onward.

    Thus the argument that the records were routinely destroyed after seven years doesn't hold up. People were demanding those records for seven years and were denied for seven years.

  26. Here's another report about destroyed 9-11 documents, coming from the Chicago exchange angle:

  27. Beware in forums and blogs with "user comments" . is a site that "employs volunteers" to "bombard" forums and blogs with Pro-Israeli comments ...and there seems to be an "Israeli 911 connection"

    On the day of the attacks, former Israeli Prime Minister Benjamin Netanayhu was asked what the attack would mean for US-Israeli relations. His quick reply was “It’s very good … Well, it’s not good, but it will generate immediate sympathy (for Israel)”

    google Dr. Alan Sabrosky

  28. Anybody notice this from Len Horowitz?

    13) Just prior to 9/11, you may recall, Goldman Sachs did the same with airline stocks; and before the Gulf catastrophe, GS shorted mortgage company stocks, fueling the real estate collapse in America.

  29. This article simply ROCKS ! That was a great read for me. I simple agree on every word written, keep it up with all the good work.. You have got my Thumbs UP !!!Thank you,



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