Archegos Tried to be the Fed and Wall Street

ZH: Bill Hwang Arrested: Archegos Owner Charged With Racketeering, Securities And Wire Fraud

Archegos, through Hwang and Tomita, effected this scheme by dominating the market for its Top 10 Holdings, as well as by “setting the tone” (i.e., engaging in large pre-market trading), bidding up prices by entering incrementally higher limit orders throughout the trading day, and “marking the close” (i.e., engaging in large trading in the last 30 minutes of the trading day) and by other non-economic trading, all with the goal of artificially inflating the share prices of its Top 10 Holdings.

That's a description of how the stock market has behaved since QE was started in 2009. The legal difference between Archegos and the stock market is the Federal Reserve and Wall Street banks acting as partners, can't be charged with setting the tone, dominating trading in its target markets, counterfeiting, wire fraud, marking the close and other non-economic trading, all with the goal of artificially inflation financial asset prices. That's "public policy" carried out by a privately-owned bank and its partners because the government gave this entity legal immunity.

A similarity between Archegos and the Fed/Wall Street is these schemes always blow up when the money runs out. The Federal Reserve's existence as a quasi government institution is not guaranteed. The Federal Reserve can lost its power if it upsets enough people, for instance by wrecking the economy with high inflation. Do you think DC politicians will hang for their crimes when they can hang the Fed instead? When the money stops flowing into the market, it goes poof like Archegos. The Fed is going to start pulling its support out next month. Enjoy the decline.