maneco64 is reporting that a major bank in the silver derivatives market has gone under.
jmski52
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They aren't releasing the name of the bank, but it is supposedly confirmed that the bank didn't meet it's margin call at 2:00 AM last night and the Fed was forced to pump 34 billion into the repo market. The bank's position was liquidated at 2:47 AM.
Reported by David Jensen via Eric Yeung this morning.
This might be a very interesting day.
- Correction - David Parker, not Parket
Q: Are You Printing Money? Bernanke: Not Literally
I knew it would happen.
I knew it would happen.
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Coincidently, today is the day that Comex raised its margin requirement, and have also reduced their position limits which means that anyone holding too many long positions will have to liquidate some of them.
I knew it would happen.
Who is this "maneco64" and why is his/her reporting or shall we say supposed reporting so vague? RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Retiring at 55, what day is today?
youtube him
I knew it would happen.
More on the story: The US is squeezing China
Silver war underway.
When gold and silver move together, it signals the coming end of fiat money.
maneco64 slurps his beverages too loudly and puts me into a trance more often than not. But he’s interesting just enough times to give his content a go!
COPPER is gutter !
he was a London bond trader, so he's very familiar with the financial markets.
I knew it would happen.
I see nothing on the major business news wires, Bloomberg, Reuters or WSJ. Also $34B is not a lot for the FED to pump into the overnight repo market. Hard to believe a bank going under would not get news headlines quickly.
Yep, it's interesting.
I knew it would happen.
The dollar amount is not the concern. The concern is the affect on the dominoes still standing.
When gold and silver move together, it signals the coming end of fiat money.
There were probably a lot of traders that shorted silver at $50 thinking it would be a triple top and got caught with a losing trade. Part of the run may be those traders having to cover.
This is an awakening for the those here who say banks don't speculate in precious metals.
When gold and silver move together, it signals the coming end of fiat money.
Still no bank news. No surprise there.
I knew it would happen.
youtube? lol
That's like laughing at e-mail in 1995
COPPER is gutter !
youtube? lol> @softparade said:
actually that is a false comparison. it takes a video and a personal action to view it.
email simply passes email from a sender to you: 1- based on who you know or 2) from a spammer. the action on email comes from the sender
it's more like news groups, or forums. believe everything you read here? reddit? i'll take msm with salt where i know some credentials
nah, your analysis misses my absolutely spot on point. Why would you laugh at youtube? Probably because you don't know anything about it. It's up to the viewer to parse through the tons of garbage, like any other source of information. But to pass if off with a "lol"?
COPPER is gutter !
yes. in this respect there is more useful info on twitter. some rando of youtube? lol youtube is not high on the list of go to sources of info.
i'll continue to lol at youtube. give me altman on youtube and fine. but unfortunately, those producing the video will also have it a recognizable site. youtube. lol
twitter aka X lol
COPPER is gutter !
actual reporters and reliable companies use twitter. i take action and follow them then get sent the news i read. the randos don't get traction with me. there are much much more reliable sources on twitter than youtube
a lot of fired msm writers are on substack but they are often behind their own paywall
No reports of a bank going under due to gutter derivatives outside of this baseless youtube claim. I guess that's where the supposedly comes in.
RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Retiring at 55, what day is today?
More information is coming in. Laugh about it, but you're on your own.
I knew it would happen.
but he's never been wrong when it comes to silver
When gold and silver move together, it signals the coming end of fiat money.
Sorry not to change topic but great move on your Pt last week. Perfect timing. RGDS!
I've been wrong lots when it comes to the gutter but at the end of the day it's just another piece of the pie. Seems like some youngbloods stepping up to the plate. We should be able to offload to them shortly. THKS!
P.S. You are killing it. CNGRTS!!!!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Retiring at 55, what day is today?
In other news, Parket and Yeung announced that the New York Yankees have signed George Herman "Babe" Ruth and Lou Gherig to free agent contracts.
These people have no shame. They don't understand basic open market operations and have never watched the SOMA (System Opern Market Account) of the NY Fed in action.
They know 99% of the American public doesn't have the knowledge to see through their BS.
Nobody is thinking "triple top" when the earlier tops happened in 1980 and 2011.
you don't rescue a bank that lost lots of money by doing repos (or reverse repos). a repo is a short term liquidity move. it doesn't cover losses.
a repo is also a loan that is paid back with interest. should an institution need to cover a loss, they don't take out a very temporary loan which involves paying more back
a failing institution would be either closed and assets sold or a buyer for the institution found
Lehman went bankrupt. qe saved others by putting money into institutions excess reserve balances at the fed res. qe and excess reserve balances add money to them not loaning a broke institution money on a very short term basis
You do use a repo to rescue a bank(s) from going under that has loan exposure to a bank that is going under. Repos help stop dominoes from falling. In this case you don't rescue a dead man, you rescue the guy who was his creditor.
When gold and silver move together, it signals the coming end of fiat money.
Appears the phantom bailee is BoA.
Turns out in late 2025 Bank of America and Citi were net short 4.4 million ounces of silver, 5.5 times annual global mine supply. 60% of that supply goes to industrial demand. They weren't shorting a market, they were shorting a supply that does not exist. One way, besides a bank repo, to help bail them out is to bring the price back down. This is what happened on Monday. The fundamental thesis for Silver hasn't changed, but the ownership structure just got a lot cleaner.
When gold and silver move together, it signals the coming end of fiat money.
Still no confirmation of this "alleged" bank going under. :roll Seems to exist only in youtube fantasy land. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Retiring at 55, what day is today?
Banks must hold a certain amount of capital based on their balance sheet and loans outstanding. That capital is usually UST bonds and Agencies - cash also counts but earns no interest so only a small amount is kept to meet normal funding obligations. When a bank needs short term cash to meet obligations, i.e. outgoing wires, etc, they go to the overnight Repo window and pledge their proprietary bonds for immediate cash. The bonds get returned and so does the cash next day. Now the bank can roll the Repo but that is not a good sign.
All these bailouts with gov't $. Still like to know is that "real $" or keyboard $.
Think Shell game...
but like gambling, you bet what you want to Win.
If boa, I never thought highly of them anyway.
You would think banks in general would make enough money that they wouldn't Gamble on Greed
Injections of liquidity are temporary. The acquiring bank must have enough capital to make it on its own.
JPM got injections of liquidity to help finance the Bear Stearns takeover....it wasn't because JPM was in trouble, but because the NY Fed realized that JPM was doing them a favor ($20 BB) and they wanted the financing costs as low as possible.
After a few months, the liquidity is reversed and by that time JPM can finance with equity, a bridge loan, debt, etc.
No bailouts. A bailout implies something given in excess of a free market exchange.
UAW and Teamsters unions got bailed out. But media won't cover it because it doesn't fit their narrative.
So they were short less than $500 MM in silver....and they needed a bailout despite a Tier 1 capital position of $205 billion ??!!!?
Uhh.....I don't think so.
Philippians 4:4-7
me thinks you wrong
When gold and silver move together, it signals the coming end of fiat money.
maybe they didn't go under, maybe they got bailed out because of the exposure they had among other banks. FED's #1 priority is protecting the banking system. . . at all cost. Banks go under, everything you know of goes under.
When gold and silver move together, it signals the coming end of fiat money.
Agree the numbers do not add up to huge losses.
Those youtube guys need eyeballs.
Unless the banks are really small, banks usually get merged into another stronger bank and do not fail. The 'buying' bank will usually get assurances and guarantees for unrecorded losses.
You get the same crap no matter the place. Y’all who point fingers at YouTube crack me up.
COPPER is gutter !
Still no confirmation of this "alleged" bank going under. :roll Seems to exist only in youtube fantasy land. RGDS!.
Such is the world where the "news" is mostly full of crap these days.
Well, I have news for you - it really did happen. We just don't know which bank, or what they're doing about it now.
Whoever it was got stopped out of their shorts and they took major losses. We don't know what machinations are taking place behind the scenes right now , just like in 2008. The public is always the last to know.
As the price spiked their short positions were called when they couldn't come up with the higher margins. As their positions were liquidated the price dropped, all while the price in China stayed high. As favors were being called in and as the metal was being found to satisfy deliveries, the price dropped in China as well.
Now, the spread between NY and China is narrowed and the cash market (out of China) is in control and the price is coming back up to reflect the market fundamentals. The derivatives market is dead. Michael Oliver still says there's a 1% chance of falling into the $50s, but much more likely to stay in the $70s and much higher.
In other news, Parket and Yeung announced that the New York Yankees have signed George Herman "Babe" Ruth and Lou Gherig to free agent contracts.
You're still watching Bloomberg, I see..................
I knew it would happen.
Is this an episode of the Twilight Zone?
Knowledge is the enemy of fear
Yep, it involves COMEX
When gold and silver move together, it signals the coming end of fiat money.
Selling that 100 oz. bar wasn't the best move.
I knew it would happen.
Well, I took that money and bought 100oz of paper on yesterday's drop. So about $5 lower than sale. Then i sold a call option giving me 15% downside protection as well as potential 15% upside. And i have cash left over.
We'll check back in 6 months.
Knowledge is the enemy of fear
Well, I took that money and bought 100oz of paper on yesterday's drop. So about $5 lower than sale. Then i sold a call option giving me 15% downside protection as well as potential 15% upside. And i have cash left over.
Fun & Games
I must admit that I've never traded options and see no reason to do so.
Explain what you mean when you say that you bought 100 oz. of paper. What kind of contract?
And, isn't selling a call option just like betting against your own position?
I knew it would happen.
Selling a call can be thought of as limiting your upside in return for extra income.