Taxpayers on the Hook for Millions in Losses After Ex-JPM Traders’ Leveraged Power Bet Goes Sour

By Tyler Durden | 25 September 2018

ZERO HEDGE — The Norwegian power trader who got caught on the losing end of a 4-sigma move in price spreads is being forced into bankruptcy after liquidating his entire estate. But in the US, two ex-JPM traders who wracked up comparably massive losses have managed to walk away, leaving the end-users and distributors on one of America’s largest energy grids holding the bag.

BusinessWeek on Tuesday published a story about GreenHat Energy, LLC, an ill-fated power speculator that bought a sizable position in long-dated financial transmission rights. FTRs, as they’re more widely known, are an obscure power derivative designed to allow distributors to hedge against sudden spike in transmission costs when parts of the grid are temporarily taken offline (due to inclement weather or some other hazard). Houston-based Greenhat opened the positions via PJM Interconnection, LLC, which oversees a wholesale electric grid serving 65 million people between Chicago and Washington, D.C.

They are used in deregulated power markets to help energy buyers, generators, and distributors protect against localized price swings. Bottlenecks can sometimes form on the power grid—such as during an ice storm or when a plant goes down—creating what are known as congestion costs. Using an FTR, a big power buyer can get paid when congestion costs rise, offsetting its risk. But it might also end up owing money if there isn’t congestion.

Financial players can buy FTRs, too. Much of GreenHat’s portfolio was “long-dated”—meaning it was betting on transmission-line congestion patterns that wouldn’t start until June 2018. And based on historical patterns, most of those positions initially looked like smart moves, according to PJM. That likelihood of success brought a side benefit to GreenHat: Under PJM rules at the time, it could keep building up its portfolio without having to put up much money as collateral. But GreenHat would have to pay if congestion patterns turned out to differ widely from those in the past.

GreenHat opened its FTR position in 2015. By April 2016, the first signs of a problem had emerged. Around that time, another trader on PJM known as DC energy, one of the largest buyers of FTRs, complained to PJM about rival portfolios with no collateral attached. When PJM approached GreenHat, one of its partners, Andrew Kittell, said his firm had offsetting contracts that would pay out more than $62 million should their FTR bet turn sour. PJM mentioned this in one of its filings to the Federal Energy Regulatory Commission. […]

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Neocon Hack Now Running Reddit’s Thought-Police Cesspool

The Reddit cesspool in June 2017 brought in neocon spook Jessica Ashooh as its policy director, and the outcomes have been shown in spades. Banning and discourse shutdowns have unfolded on anybody participating in truth, justice and revisionist issues. Reddit over the course of a year went from semi-free to being under total control of the Crime Syndicate’s information ministry.

We discussed our own personal experience of being banned at r/Conspiracy for “spamming” despite accumulating 14,000 karma. We will let the reader decide if this site deserved such censorship. We discussed the true nature of Reddit in “Rancid Reddit is an Orwellian Cesspool of Usual Suspects.”

Mostly, Reddit influenced discourse by allowing a few “mods” to control many huge subreddits. But the latest stark travesty at Reddit was to insert into the primary 9/11 Truth subreddit the latest Orwellian fraud — something called “quarantine.” Here, Ashooh and her ilk meet the inquiring redditor with the following screen (see image below).

We have posted at r/911Truth and have been well received. The discourse there is generally thoughtful and relatively tame. It is a quiet little corner of the truth community. The mods did a good job of beating back the organized trolls and bots that Reddit allows to run amok. Obviously, it was a prime target for this.

As far as the 9/11 Commission report that Reddit censors are recommending and calling “historic information,” here are examples of what various members of that commission had to say:

  • 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.”

Next, Reddit’s thought police hacks reveal what a quarantine is and also reveal themselves for the nasty CHEKA that they are. They have elected themselves the final arbitrators of what the “average redditor” should have access to based upon “well documented” lies and obfuscation of their own creation. The self-censoring implication is that, if you are defiant enough continue, your IP address will be passed on to “parties” hostile to 9/11 Truthers.

Meanwhile, over at the large r/Politics sub, the shills are running a full-court, anti-white, male-demonization campaign centered around false accusations against Judge Kavanaugh. (Torchy plans to post a Kavanaugh rant tomorrow.) Here’s a further sampling of what a cesspool Reddit has become. In contrast when we posted one of our tamer articles as TNN at r/politics, we were quickly banned.

Who is Jessica Ashooh?

An examination of Ashooh’s curriculum vitae reveals a stint at the Atlantic Council. For those unfamiliar with the organization, the Atlantic Council is front and center among “fact checkers” at Orwellian Facebook, fighting the “scourge of fake news.” It’s chaired by Henry Kissinger and is funded by arms manufacturers, various branches of the U.S. military, Middle Eastern autocratic regimes and Zionist-Jewish plutocrats.

In 2016, Ashooh — who at that time was deputy director of the Atlantic Council’s Middle East Strategy Task Force and a senior policy planning analyst in the United Arab Emirates Ministry of Foreign Affairs — was also a contributing columnist at The New York Slimes, for which she penned a forgettable op-ed piece titled “Provide Opposition Groups in Syria With Anti-Aircraft.

Indeed, her education and career has centered around neocon agendas and Middle East think tanks. Then, suddenly, she becomes a policy manager of a social media site like Reddit. There, she sits at a long table with other like-minded hacks and decides what flies and what doesn’t.

In the The New Yorker, Ashooh described how it works:

Ashooh sat at a long conference table with a dozen other employees. Before each of them was a laptop, a mug of coffee, and a few hours’ worth of snacks.

“Welcome to the Policy Update War Room,” she said.

The job of policing Reddit’s most pernicious content falls primarily to three groups of employees — the community team, the trust-and-safety team, and the anti-evil team — which are sometimes described, respectively, as good cop, bad cop and RoboCop.

Specifically, in her prior assignments, she specialized in advocating the balkanization of Iraq and Syria. Questioning the “official narratives” regarding Syria has been relegated more and more to the memory hole on Reddit.

Ashooh’s Linkedin page show the following:

Who Owns Reddit?

Reddit’s majority stockholder is Advance Publications. Advance also owns Condé Nast (aka Condé Nasty) and has a 13% stake in cable company Charter Communications, as well as cultural debasement rags like Vogue and Teen Vogue.

Articles on labia necklaces are par for the course at Teen Vogue, but a site for 911 Truth is quarantined by a neocon hack at Reddit.

The president of Advance Publications is Donald Newhouse. Per Wikipedia, Newhouse’s father, Samuel Irving Newhouse, Sr., was born to Jewish immigrants on the Lower East Side of Manhattan and began the family media business. His mother hails from a Jewish silk-tie merchant. The Newhouse clan has been at the publishing game for nearly a century, gaining market power by acquiring small newspapers nationwide.

Winter Watch Takeaway: Some may say Ashooh is a run-of-the-mill neo-liberal acolyte. We say she is a CIA/corporate media/Crime Syndicate spook assigned to control content on Reddit.

Kp Message 9-30-18… “Currently ‘on a job’”

I’ll likely not be posting anything (except Ben Fulford) during this next day. I have “work” I’ve been called to attend to. From what I can sense, it is quite important for this time, and I’m getting that it is “essential” for the proper (aka, beneficial) unfolding of the positive (aka, Ascension) timeline for humanity.

More later.

Aloha, Kp

Remember Henry George


By Anna Von Reitz

“The main trouble now is neither any material shortage of the resources of nature nor any inadequacy in man’s power to exploit them. It is all, in one form or another, a maladjustment; not an insufficient productive capacity, but a series of impediments to the full utilization of that capacity. The main obstacles to economic revival have been the hindrances opposed to the free flow of labor, capital, and goods.” 


This quote comes from the 1927 World Economic Conference, Geneva, conclusions provided to the League of Nations. 

It is synonymous with the findings of American Economist Henry George, whose vision smacks of clarity today as it did in the 1880’s and slaps the faces of all those who have fallen into the sophistry and lop-sided pandering of Keynes.  

The Problem and the resulting Mess is entirely the fault of Big Business Interests usurping upon the rights of the living people and their national governments and seeking Unjust Enrichment via their constant official (governmental) and unofficial (private) tampering with commodity markets — including the currency markets.  

It hit a crisis point in 1907 with the bankruptcy of the Scottish Interloper and Impostor calling itself “The United States of America” Incorporated and found its final fruition in the current hegemony of Wall Street. 

To put it simply, Big Business Interests — Robber Barons like the Vanderbilts, Carnegies, Harrimans, and Roosevelts took over our lawful government via deceit and fraud and used the tools of government to afford political and economic advantages to themselves.  

That is, they used the Regulatory Powers of Government as private tools to ensure their market share and market dominance.  We see this in the hideously self-interested birth of the “American Conservation Movement” which we were all taught to venerate just as we were taught to venerate “The Constitution”.  

The actual policy adopted by Teddy Roosevelt was supremely cynical and shrewd— buy everyone else’s natural resources for pennies on the dollar and preserve our own under the guise of “conservation”, and at the same time, limit supply of natural resources coming to market and ensure the value of commodities already under the control of the plotters. 

That is, use the regulatory powers of government to ensure yourselves fat market shares and high prices for generations to come. 

Commodity price rigging and supply rigging and creation of monopolistic interests in all sectors of our economy have been the Order of the Day since the 1880’s, and in many ways, it still is.  

These things must be recognized as the Evil that they are, and there must be an end of allowing the regulatory powers of government to be used as tools implementing the self-interest of private parties.  

We must come to terms with the fact that the two Roosevelts were hideous schemers, liars, and louts, the very worst of the worst kind of criminals in suits — and that Americans were not even the primary beneficiaries of all this fraud; instead, we were set up as the Fall Guys for it, the ones who would be blamed for it even as we suffered from it.  

We need a call to political action busting monopolies and conglomerates and trusts that have functioned as crime syndicates for generations. That includes the entire water and power industry, the communications industry, the stock markets, the banks, and the SEC.  It’s time, America.  

It’s you or them.  Make the right choice while you have a choice left. 

And if you have any questions, read Henry George — Progress and Poverty.  He very succinctly explains why economic models predicated on infinite and continuous growth are worse than Big Lies and why abuse of regulatory powers and manipulation of commodities and markets, including currency markets, inexorably leads to polarization of economies, stagnation, and war.  

If you would have peace, you must have free markets.  

And that requires busting up the regulatory fraud and abuses of federal agencies and the exercise of anti-trust and anti-monopoly legislation to enforce the actual Public Law ensuring competitive free markets. 

The fallacy of the thinking of the — I shall call them pigs —- is that there is no end to the patience of the masses; and, the arrogance that they share in thinking that their activities and abuses are not observed or not understood for what they are. 

It is as self-evident as catching six year-olds with their grubby paws in the cookie jar, but these grown men persist in thinking that their activities are “secret” and that the rest of us haven’t figured it out, don’t see it — and won’t take action against them.  

Prove them wrong. 

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See this article and over 1200 others on Anna’s website here: www.annavonreitz.com

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