Ouch what's up with metals today
Smittys
Posts: 9,876 ✭✭✭✭✭
Smittys
Posts: 9,876 ✭✭✭✭✭
Smittys
Posts: 9,876 ✭✭✭✭✭
Comments
This was a false market rally in my opinion.
<< <i>SEC is suing GS, GOOG had crappy earnings and the market is selling off in general. Metals are liquid and easily sold in these situations. Plus the market in general was due to slide. The only reason retail sales are up is because 7million people in foreclosure aren't paying the mortgage and are living rent free.
This was a false market rally in my opinion. >>
Suing them~ They ought to dismantle the freeking crooks! TBTF just a ploy to ease tension. They will come out billions more $'s ahead.
More games from the talking heads.
Paulson had started a Gold Hedge Fund with helped the price of gold and gold sentiment, so now FTV is dissing gold, thinking that the Paulson influence is now running negative.
725 million shares of stocks are running negative now vs. 55 million shares running positive, according to CNBC, a huge imbalance in sell vs. buy orders........
Gold has alot fewer problems right now than the stock market has. Looks like another crisis in the making to me.
Let's be clear, the paper crap is illusory and gold in the hand is real. The very guys who issue the crappy paper short it on the side. You can't do that with physical metals. Big differences. No, Huge Differences.
I knew it would happen.
It bears watching closely.
I knew it would happen.
<< <i>Well I am going to look at the bright side and pick up some metal this weekend >>
I agree and will be buying more late this afternoon.
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This could all be just a regular end around to knock back the markets. They were overdue anyways for a pullback. So why not blame it all on GS and John Paulson and let them take the hit for everything dropping? It's not like it was a secret that GS had their hands in municipal and govt cookie jars by shorting the very derivatives they were selling them. While I'm not greatly surprised that Paulson was in on this, I guess it's par for the course. He was one of the few that benefited in $BILLIONS by shorting the housing derivatives/MBS's, etc. Sad to see that he was also probably one of the guys adding gasoline to the woodpile before the match was lit.
roadrunner
He has a huge stake in GLD and a few miners which I expect he will need to sell to raise cash. At the very least if he doesn't do jail time and lose his traders license, he will be paying huge multi-billion dollar fines.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
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Right, Bear????????
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Maybe THAT's where the 480 billion from the Fed went. SHORT Gold and Silver! Where did that money go? Is the Fed exempt by law to disclose their (our) money transactions?
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
I tend to agree with the above statement.
I knew it would happen.
Knowledge is the enemy of fear
<< <i>Some are saying to wait till Sunday night to buy, to see how the asian markets react--------------BigE >>
I agree, at the very least next week will be interesting!
As a rule I think they should be outlawed entirely. Start unwinding the ones out there and allow no more.
Computer trading should be heavily sanctioned as well.
I'm sure there is one but I haven't as of yet looked for one. The data would not be broken down into the categories of traders as the CFTC does each week. Shorts always equal longs so the real info is in how that % is split between speculators, commercials, and managed money. During the week I think all you can know are the number of contracts being traded each day. Someone like Cohodk, PC, or Red Tiger might be able to fill in the blanks further.
The $421 BILL turns out to be an "accounting" change done through the FASB and the FED. They decided that these items could be brought from off the balance sheets of commerical banks and now counted as assets (ie allow for further leverage I suppose). It's accounting wizardry at its finest.
There are > $1 QUADRILLION in derivative notional value out there. 80% of those are in interest rates swaps/contracts. According to Sinclair there is no effective way to wind down that number without destroying the entire financial world as we now know it. Since he's been right on the money with his derivative calls since 2002, I'll give him the benefit of the doubt. If they could just be canceled out it would have been so already. Some of the CDO's were cancelled out during the 2008 wipeout and the notional value of those dropped from $62 TRILL to around $38 TRILL. Look at the carnage that this relatively "small" amount caused. Well the interest rate swaps at that time trumped CDO's by a factor of 20X and Mortgage backed securities by a factor of 80X..... and these IR swaps have yet to be touched. When Lehman went down they got 8 cents on the dollar for their overall derivative's "portfolio." Unwinding all the remaining illiquid derivative's crap where BOTH sides of the swap are claiming to have a PROFIT (or minimal to zero loss) would identify the one that is really lying and deep underwater. And if that underwater guys go bankrupt which they likely will since they will be on the losing side more often than not, who pays the "winner" his due of the full notional amount? The US Treasury (ie taxpayer)? So how many pension funds, corporations, cities, states, and nations would go down in flames if these were fully unwound? For now the banks like things just the way they are with marked to model accounting and all derivatives kept in a deep, dark back room closet.
Cohodk, I'm not sure why holders of GLD would have a problem being associated with Paulson if they are truly believers in gold. But with a stake in the 5-10% range of GLD, having Paulson leave could pose some temporary problems. But I doubt we'll see an unloading of the GLD inventory. Even so, give China a call, they'd love to secretly take 200 tons off GLD's hands at $1100/oz. But note that Einhorn's Greenlight Fund had a similarly large stake in GLD and sold it off systematically to move to 100% physical bullion closer to their own control. I always wondered why a smart guy like Paulson was staying in GLD. Maybe that was an arrangement agreed upon with Goldman for some mutually beneficial reason. Paulson is also a 10-15% holder in miner Anglo Gold Ashanti. Martha Stewart received jail time for getting inside tips from her broker. It's unlikely Paulson would ever see the inside of a cell.
Another reason that this smackdown was needed was to get interest rates down again so the FED/Treasury can continue to peddle their bonds. And the only way to do that is to tank stocks and commodities. Already sheeple are flocking back to the "safety" of TBonds. Next bond auction of 2/5/7 yrs is less than 2 weeks away. They are now spaced out about 2X per month going through July.
roadrunner
<< <i>we get 48 hours to decide whether to buy at 17.70 or wait for the open in Asia. >>
Who/where can you buy at $17.70 for?
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Fred, Las Vegas, NV
As a faithful reader of JS, I am not impressed with his short term calls with regards to price. Maybe it's an area he should just stay away from. His "few days" could just as easily be a few weeks or a few months. His call on the disintegration of the dollar starting the 2nd week in November was a particularly lousy call. Just 2 weeks later the dollar was back into rally mode.
roadrunner