Tuesday, December 22, 2015

MIT Finance Science with Capital Markets

Christmas Coal Train
This Holiday Season rumor has it that Santa has contracted BNSF Railway owned by Warren Buffett to distribute the alarming load of coal on Santa's Naughty List, one lump or two there's always room for improvement.  Most of this load will be proudly presented to the global finance sector of our economy.  In the spirit of Christmas, the calculations of market manipulation are not in a realm of sharing, from here we experience individuals like Martin Shkreli who wrote on one investment site while shorting the stock. “Clinical data can be misleading, innocently biased, meaningless, manipulated and sometimes even downright doctored". Martin shorted biotech companies, then described flaws in the companies on stock trading chat rooms.  Networking is a more dominate player in market manipulation than MIT math when it comes to bringing players to the table.

Turing Pharmaceuticals at work, watch this short sale
So I understand in our court system today that the jury doesn't understand the MIT Finance Science used in investing, where cases are being dropped for market manipulation.  Now Martin Shkreli was disliked for a new pricing for Daraprim, the price of a dose of the drug in the U.S. market increased from US$13.50 to US$750 per pill, overnight, a 5,500% increase.  Shkreli founded Turing Pharmaceuticals, it could set high prices since the markets for out-of-patent drugs are often small, and obtaining regulatory approval to manufacture a generic version is expensive.  Turing calculated that with closed distribution for the product and no competition the sky is the limit, well Martin seen that limit and is now looking at securities fraud charges on Thursday, Dec. 17, 2015 following an early morning arrest, and was freed on a $5 million bond.

The real news here is Martin has shared his pioneered experience in market manipulation running a Ponzi-like scheme where he used each subsequent company to pay off defrauded investors from the prior company.  So like in his comment of Clinical data, we find the MIT math of finance science to be misleading, innocently biased, meaningless, manipulated and sometimes downright doctored!  Who better to know than Martin, where such science is not evidence but merely a tool of deceit, now the jury understands that.

The buck doesn't stop at Martin; Ten of the biggest Wall Street banks and two trading platforms face a US class-action suit accusing them of conspiring to limit competition in the $320 trillion market for interest rate swaps.

Merry Christmas and Happy Holidays

The Young Turks

 

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