Hillary Clinton commodities Trading scandal April 10 1994-60 mins



what's all the shouting about they're playing the commodities game buying and selling cattle futures which of course begs the next question what's a cattle future a question that never would have occurred to us if Hillary Clinton's hundred to one profit and cattle futures hadn't become a page one story so with five thousand dollars in hand last week I became like mrs. Clinton a speculator in the commodities game by now everybody knows how she did how did I do stick around and find out whether a novice investor today could do as well as mrs. Clinton did fifteen years ago we decided to play the commodities game so I opened an account the first thing I found out was that today it takes more than a thousand dollars to get into the game so I have to write 5,000 just to open an account that is correct I was able to open my account last Monday with a big Wall Street investment house on the condition that we not identify the broker or the company if I'm giving you $5,000 correct how much could I lose there is no real limit to how much you can lose if I had heard you need a cast-iron stomach for this I had heard it was a pure crapshoot now I was buying cattle futures myself and hearing I could lose everything could end up owing my broker 20 times my $5,000 investment it may look like sheer pandemonium a color-coded insane asylum but it's really the Chicago Mercantile Exchange the largest futures trading market in the world and the place where mrs. Clinton put her money 15 years ago we toured it with the chairman of the exchange Jack's Amer if you look at this behind a job it's a total rule no order here it's a mess how can anybody know what's going on but you know the adage that things aren't what they seem is never more true than what's happening right here this is so organized and so structured and if it weren't it would be a disaster this organized this is organized in structure every single trade that is made is confirmed precisely in terms of price in terms of quantity and in terms of buying or selling and approximately four to five hundred billion dollars a business will be transacted transacted in this pit today billions billions billions in one day it turns out for the world institutions that are banked on these honey spoons and these people actually know what's going on in here precisely screaming in their eyes but what precisely are they doing basically these screamers inside what they call the pit are buying and selling it's like an auction they're signaling prices to traders up in the bleachers on the phones the exchange once try to computerize this bed look but believe it or not they found that the yelling and the hand signaling were far more efficient in this pit they're not betting whether pork bellies will go up or down they're betting whether interest rates will go up or down agriculture used a rule the commodities exchange now it's finance Goldman Sachs all of the first chemical future Citicorp fuji Mitsui they're talking to their customers around the world let's say city core or chemical believes interest rates are going to go up in the future they will buy futures contracts today which are really agreements insuring that they will get a lower interest rate six months from now it's like home buyers locking in mortgage rates here they call it hedging basically they're buying insurance for most of the players it's the opposite of risk-taking it's risk managing trying to make a living this area is where cattle futures are traded where mrs. Clinton invested her money I wondered who was making my buy of one contract of cattle of course when you buy futures nobody delivers cows to your house you never really own the animals the traders are putting bets down on what the price of beef will be in June or December the meat producers the food wholesalers the meat packers they come here to insure themselves against the unexpected price swings and the beef market and kalynn articular so mainly people in the US are in this module ninety-eight percent all steeped in the industry whether they're in the producer part of the of the line the chain or whether they're in the meat packing part of the line the chain or whether they're in the wholesale part of the retail part of the chain or whether your McDonald's or whether you're Colorado cattlemen dig far if there's a typical customer buying insurance in the Chicago cattle pit he's it and he's been playing futures for 25 years do any people who get into this market ever come out to look at the cattle thinking they on it no not really another not anymore they don't do that well I have in your hair look my I'm here to look over my boys now why are you in this market as a cattle man well as a cattleman I'm trying to protect the value of these animals so we watch the futures market on a daily basis we watch the cash markets on a daily basis and I try to protect the value of what we have here are some traders who aren't trying to protect anything like Hillary Clinton they're just trying to make money she's a specular here speculum he respected Dan was that that's not a dirty word however she is a pure speculator which is what America is all about trying to improve your left this week I was a pure speculator too and in the same cattle futures that mrs. Clinton traded so long ago Tuesday I placed a bet that this coming June cattle will sell for about seventy four and three-quarters cents a pound if that price moves up between now and June I can sell out and make money if it goes down I'm stuck with a loss so how am i doing we're up five points up five points alright well huh but what does that mean in terms of money twenty dollars just twenty dollars that is correct there's a huge difference between the market I'm in and the one Hillary Clinton was in right now cattle prices are very stable but talk about great timing right after mrs. Clinton invested that $1,000 cattle prices took off like a rocket this is a chart Leslie for the last year basically in Kayla there's no movement now you go back in the 70s here is 78 right here this is when she was where she was gonna be any what happened to the market and she was in it for this and then she got well I don't I don't have the records are you and she was in it she was in it for this fight and this spike and got out right as it came down and made money pushing bet it was very good trend is it possible for someone who's a total novice the way she was an amateur to jump in like that and in a few months make a hundred times the money they invested it's it's possible it's highly improbable even in that market even in that market how did you do in that market not as well close no no we didn't do as well there's as much skepticism on Wall Street as there is on the farm about how mrs. Clinton managed to make such a killing Mori Markovitz has spent his career trading futures his clients have given him 40 million dollars to invest for them my best year in trading I multiplied my money by 22 times that was very unusual that was very unusual but I was able to do it there was your best 22 my best year and mrs. Clinton she did five times better than I did she multiplied her money by 99 times she did it in ten months I took me a year I had 16 years experience in 1978 mrs. Clinton was getting trading advice from Arkansas lawyer James Blair a close friend who was aggressively playing the cattle markets at the time but the White House says mrs. Clinton was in control of her own account and made her trades herself it's very difficult for me to believe that mrs. Clinton was trading her own account and managing her own account it's extremely difficult for me to believe that she everything it just doesn't make sense Markovitz has examined mrs. Clinton's records that were released by the White House in her very first transaction on October 11th 1978 she deposited $1,000 a small amount to start with even in those days and made a $5,300 profit the very next day to do it with $1,000 is extraordinarily unusual that's someone who made five hundred percent on their money in one day to do that well her first day mrs. Clinton had to make multiple trades involving hundreds of cattle but she was young and a complete novice without much of a nest egg mark of it says her broker was allowing her to risk losses she couldn't repay if someone told me that a person opened an account with a thousand dollars and the next day traded 20 contracts cattle I would say well someone's doing them a favor someone to allow them to trade that way everyone who trades futures mean mrs. Clinton everyone operates on what is called margin that means they only put up a small percentage of the money they're actually risking if they begin to lose their broker is required by exchange rules to ask for more money let's say I open an account with you you're a trader and I give you a couple of thousand dollars but then I'm losing money and you'll come to me and ask me for more money absolutely immediately and that's my margin requirements right would you ever not call in money from someone that's not favorite customer obligated to do it to send out a margin call but mrs. Clinton's monthly statements indicate that even when she was losing she was never required to come up with more cash there was a point in July of 1979 actually just before her biggest profit when some of her trades went sour for a time and her account was allowed to remain in deficit for several days she was in the hole in the minimum of twelve or thirteen thousand it could have been as much as forty thousand we have no evidence that she was ever called to put more money back No well we won't we can see that no money ever in fact was put in the accounts and she was allowed to continue trading so so again let me ask that question was her was her broker doing her a favor oh definitely not definitely she got extraordinarily preferential treatments in that respect there's no question about no question about that the white house told us that if mrs. Clinton got preferential treatment she was just one of many customers given unusual leeway on margin calls by revco the company that handled her account and by her broker a man named Redbone both bone and revco were punished by the Mercantile Exchange the allegations by the exchange were repeated margin violations and order entry irregularities in the office in Springdale Arkansas and the case was eventually settled before going to trial by rep Conrad Bowen for the biggest fine ever in the history of the industry back then when you rewind the clock fifteen years a quarter of a million dollars in redbone was suspended from the exchange and from trading for three years which was the biggest suspension in the history of the industry not just this exchange Morey Markovitz says that mrs. Clinton should have known that what revco and redbone were doing was wrong don't forget she's a lawyer and she says specialize in the financial area a lot of her legal dealings are for where it has been financial she signed the the brokerage statement she knows what the rules are she had to know the rules were being bent in her favor the White House insists she didn't know but even playing by the rules mrs. Clinton was taking financial risks that some professionals have called extraordinary for someone of such limited means the Clintons combined income at the time was $50,000 they did not own a home as one trader put it mrs. Clinton with no experience was betting like a riverboat gambler mrs. Clinton's account I was carrying positions where the risk was actually equal to equal to or greater than the Clinton's next total net worth everything they had the type of risk that she took would would would would probably chill the blood of evel knievel mrs. Clinton's office says that she eventually found the risk too nerve-racking and walked away from the market even though she had just turned a thousand dollars into a hundred thousand my trading style was more Jack Benny than Evel Knievel I made just one trade and by the end of the week I was down $100 on top of that I owed my broker his Commission of $80 maybe next week

16 thoughts on “Hillary Clinton commodities Trading scandal April 10 1994-60 mins

  1. Crooked hillary sure became a cattle future…….years later hillary evolved in gloated fat pig she was meant to be

  2. This scene is no different than the situation involving the price of a barrel of oil which is used for making all petroleum products. No President or any elected Officials determine what we pay for a gallon of gasoline. These people (the speculators) do.

  3. Thanks for the upload. This was ignored in the last election. Found this:

    https://www.youtube.com/watch?v=RPRZfIWwNgA

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