As JP Morgan’s CIO hedge of the tail-risk hedge demonstrated, the only way TBTF banks ‘reduce’ derivatives risk is by adding additional derivatives that attempt to offset (typically not perfectly) the original derivatives.
Morgan Stanley (MS), which was downgraded two levels to Baa1 yesterday by Moody’s Investors Service, increased the percentage of the derivatives housed in its higher-rated bank subsidiary in the first quarter. [Read more...]
Epic fail of MOPE this weekend as The Kudlow Report on CNBC admitted we are all slaves to the central bankers and markets are now entirely driven by market policy, and not by free market forces.
- Do we all work for Central Bankers? Is this Global Governance at last? Is it One World.. with the Central Bankers in charge?”
- “To answer your question: We are absolutely slaves to Central Banks“
- “Markets are driven by policy now, they’re not driven by market forces”
- Central bankers (Federal Reserve) are debasing currency and borrowing our way to false prosperity”
- ”Every Central Bank in the world has to devalue their currency”
“Free markets will fight back and ultimately they’ll win”
Full MOPE failure below:
Submitted by SD Contributor Marshall Swing
It’s about time for me to write my piece on $15 silver and $500 gold, I think.
It seems quite some people get into the market not having the strength to withstand the volatility even though what drew them in was the logic behind the PM story and its validity in time of hyperinflation as a store of wealth.
When silver is $500-$1000 those who sold at $26 will be sorry because they will have nothing in the end after the crash…
It does not matter what happens with the world’s economy, like some are talking, (such as Faber), about commodities crashing with the slowdown in the global economy. When the wealth of the world rushes into gold and silver when there is nothing left it will not matter that PM wealth might have devalued 50-75% in the crash.
Fake wealth will stay down while real PM wealth will soar. [Read more...]
NASDAQ.com writer Martin Tillier has taken the JP Morgan silver manipulation story mainstream.
In a story published on NASDAQ.com Tillier writes that if rumors of JP Morgan’s manipulation of silver are true ‘and they likely are‘, The Morgue will be forced to unwind their naked silver positions in light of increased scrutiny as they cannot afford another story about excessive risk.
Tiller states that at the very least, JP Morgan will have to stop holding the market down.
Our friend TF from TFMetalsReport estimates that after Thursday’s raid, JP Morgan’s naked silver position (which as of Tuesday’s COT cutoff was approximately 17,000 contracts) could likely have been reduced to around 11,000 contracts.
Is the latest smash in silver Blythe and Jamie’s desperate attempt to extricate themselves from JPM’s naked short silver positions in order to avoid a 2nd humiliating PR SNAFU for the firm which would likely result in Dimon getting the proverbial axe???
I used to be worth millions. After the crash I am at about a half million. Silver has caught my eye and have invested about a third of my money in it at about an average rate of about $30. It seems to keep going down. Have I made another mistake? I am not in great health and in my sixties. Should I go all in or run like hell? I know you cant give advice but I’m interested in your opinion .
Thanks [Read more...]
GOLD COT REPORT 6/22/12
Commercials picked up 3,736 longs and a massive 8,637 shorts to end the week with 55.59% of all open interest, an increase of over .5% from the previous week, and now stand as a group at -16,369,100 ounces net short, an increase of about 500,000 added net short from the previous week. [Read more...]
SILVER COT REPORT 6/22/12
Commercials picked up 746 longs but covered a miniscule -219 shorts to end the week with 45.65% of all open interest, a minor change since last week, and now stand as a group at -84,770,000 ounces net short, about 5,000,000 less net short ounces from the previous week. The real story of the changes in net short ounces is told in the disaggregated commercials reporting. [Read more...]
The Silver Vigilante today points out the fact that silver has declined nearly continually for the past 40 days since the Shanghai Silver Exchange opened, declining from the low $30′s to today’s $26.75.
Merely a coincidence, or as speculated here, is the Shanghai Exchange merely an Eastern paper arm of the banking cartel? [Read more...]
Sprott Asset Management has released its latest Markets At a Glance newsletter to email subscribers,
Ministry of [Un]Truth
By: Eric Sprott & David Baker
Speaking at a Brussels conference back in April 2011, Eurogroup President Jean Claude Juncker notably stated during a panel discussion that “when it becomes serious, you have to lie.” He was referring to situations where the act of “pre-indicating” decisions on eurozone policy could fuel speculation that could harm the markets and undermine their policies’ effectiveness.
1 Everyone understands that the authorities sometimes lie in order to promote calm in the markets, but it was unexpected to hear such a high-level official actually admit to doing so. They’re not supposed to admit that they lie. It is also somewhat disconcerting given the fact that virtually every economic event we have lived through since that time can very easily be described as “serious”.
Bank runs in Spain and Greece are indeed “serious”, as is the weak economic data now emanating from Europe, the US and China. Should we assume that the authorities have been lying more frequently than usual over the past year? [Read more...]
Has WWIII just had its triggering moment, ala the assassination of Austrian Archduke Ferdinand which triggered WWI?
Breaking news from Reuters indicates Syria has just shot down a Turkish F-4 fighter jet.
Turkey happens to be a NATO ally, and Syria happens to be backed by Iran, Russia, and China. [Read more...]
SD reader and insider ich1baN documents Thursday’s silver manipulative take-down (approximately 43,000 paper contracts) and the EU banking collapse in detail in this excellent video.
Ich1baN has picked up on a 4 week trend of silver and gold being manipulated downwards on dates of continuing claims releases.
As many of our readers are aware, after discovering that Fidelity charged $420 million in management fees on $430 million in income in his money market account, SD contributor AGXIIK recently removed his entire IRA from Fidelity, set up an LLC to legally oversee his own IRA, and converted his paper IRA to physical metal in his own possession with the assistance of SD Bullion.
Fidelity made the mistake of contacting AGXIIK Thursday to inquire about his account and whether Fidelity was meeting his needs.
Needless to say, hilarity ensued.
*MUST READ!! [Read more...]
The gold market is huge and the shorts JPM and HSBC have are tremendous and they are the key that shows JPM must get out of these before the crash of Europe because if they do not undo these short positions then they lose everything, and I mean everything.
They will cease to operate as a bank because they cannot begin to cover the losses that will mount on the COMEX let alone the over the counter market in London. [Read more...]
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