Cam SNow

Financial Terrorism? - Cramer's Stop Trading! (9/18/08)

The interesting question, is that if it is true "financial terrorism" (that is some entity systematically trying to destroy the financial system), who is behind it. I'm just going to throw out a few ideas - Middle Eastern Sovereign wealth funds (or governments) through some sort of front company (i.e., an offshore hedge fund that they are solely funding). They have the necessary amount of cash to short these until the end of time due to oil windfall. This would allow them to then come in with all their oil money, as well as the massive profits made from the shorting, and buy significant chunks of US companies...
China - The Chinese also have a significant amount of cash, a government that wants to ensure Chinese world dominance, and the financial expertise to do it rather covertly. They could also then come in and scoop up companies on the cheap - but not the banking stocks they just hammered. They would likely buy the GEs, CATs, and Ingersol Rands of the world - companies that make stuff, so they could move operations, or just acquire the technologies and patents, and use it to advance their goal of economic supremacy. This is really what I would find most likely if it were "financial terrorism"
Actual terrorists? Well, maybe... they could be funded through friendly governments with windfall oil money (Iran) with no desire of later gains, or buying up companies, but just causing extreme havoc in the world system. I find this highly unlikely.
But anyhow, it's probably just a handful of hedge funds leveraged out 30 to 1.