The SEC Goes for Goldman's Ass (Yawn)

Saturday, April 17, 2010 , 108 Comments



First of all, I hope it is reassuring to LOLFed that they are, in fact, not the last news source in the entire world to bring this to you. As many of you know, I'm handling some personal issues right now and happen to be somewhere in South Dakota on my way back to San Francisco so I'm extra late (although with the time difference, maybe I'm early?). I promise when I return to homebase I will be all up in Bernanke's ass like his monetary proctologist but for now all you get is news that I should have gotten to hours ago and Twitpics of my adventure across America (Mount Rushmore by tomorrow afternoon!).

Anyway. Fucking Goldman God damn Sachs got charged with fraud by the SEC - say it ain't so! Goldman screwing clients? Packaging garbage as gold? You must be kidding me!

Yeah so, uh, maybe the SEC is actually the last to know. They have a lot of shit to do, get off their backs ok?!

WSJ:

Goldman Sachs Group Inc.—one of the few Wall Street titans to thrive during the financial crisis—was charged with deceiving clients by selling them mortgage securities secretly designed by a hedge-fund firm run by John Paulson, who made a killing betting on the housing market's collapse.

Goldman vigorously denied the Securities and Exchange Commission's civil charges, setting up the biggest clash between Wall Street and regulators since junk-bond king Drexel Burnham Lambert succumbed to a criminal insider-trading investigation in the 1980s, helping to define the era. "The SEC's charges are completely unfounded in law and fact," Goldman said in a statement, promising to "contest them and defend the firm and its reputation."

Of course Goldman vigorously denied the SEC's charges, what did you think they were going to do? Get ready for the bitchfight and make sure to be perfectly hedged if you're putting your money on Schapiro.

The press release is excellent. A recession classic.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

108 comments:

Chairman said...

Thats all I need, the SEC stealing the FEDs thunder!

(Chairman Schapiro must have signed off on an espresso machine).

Anonymous said...

I <3 South Dakota.

Jeff

Anonymous said...

The plot thickens....

We have our "Albert Henry Wiggin". Now we shall see who will step up to play our "Ferdinand Pecora".

History doesn't repeat itself, but it does rhyme - Mark Twain

Anonymous said...

I am a firm believer in the statement “Everything happens at a particular time for a reason”.

A thought occurred to me yesterday while putting out the Little Friskies for The Inglorious Bastard – Maybe you know who isn’t really pleased with Mr. Bankfein’s “we’re doing God’s work” statement back in November and his displeasure is being manifested in the form of an SEC that has likely had a fire lit under its’ ass??? Lord moves in mysterious ways right? “Fabulous Fab” doing the work of the Almighty – pffffffttttt. Any assclown that would take on that nickname should be fed to sharks. You don’t pull on Superman’s cape, you don’t spit in the wind, you don’t pull the mask off the old Lone Ranger and you don’t mess around with Slim…. For the political season my pick song is 1974

Hope you’re well.

Anonymous said...

I'm startin' ta think there's a new sheriff in town and GS made the mistake of thinking they were still dealing with the Orange County Republican Chris Cox SEC.

Anonymous said...

The RE-pubs are giving the SEC hell over the pornos and I predict that while defending itself as best it can, the SEC is going to vent its frustrations.

http://sfgate.bloomberg.com/SFChronicle/Story?docId=1376-L1EK200YHQ0X-6

"Fabrice Tourre, a Goldman Sachs Group Inc. executive director facing a fraud lawsuit in the sale of a mortgage-linked investment, said an index that facilitated derivatives trading in the market was “like Frankenstein.”

I think they are going to nail this guy to a cross.

I don't even know who the hell he is, have not lost any personal money to him, don't have any dealings with him (as if) but I just don't like him given what I'm reading of him. Seems like an over confident and arrogant prick.

http://www.guardian.co.uk/business/2010/apr/19/fabrice-tourre-goldman-sachs

"Little else is known about Tourre. One report described him as "a slight man with a flair for salesmanship"

I once knew a woman who really, really knew her European history and she told me once that there were not any Frenchmen worth a shit anymore because all of the REAL Frenchmen men died while serving Napoleon. The gene pool was left filled with just the undesireables, malcontents, bullshit artists and half wits.

I'm saying that and my grandmother on my mother's side was 100% French (but they were Acadians thank God).

Anonymous said...

Then next time you go to karaoke, promise me that you’ll choose “Kung Fu Fighting” and be sure to have TLP do the background moves and vocals. Be sure to wear some teardrop sunglasses and the headbands (lends a touch of authenticity) and it would be the complete package if TLP happens to have a Joe Willie Namath style mustache.

I have some moves and vocals. You'll have to consult JDA for her take on the complete package.

Anonymous said...

If you have stage presence (like Carl Douglas), there's nothing saying that JDA could not provide the background and play second banana.

I'd be interested to hear her thoughts on that.

Anonymous said...

Try to incorporate Smoky in the act, please.

Know what I've been reading up on lately? (care?)

Hunt Brothers silver market manipulation. For that matter the whole crazy ass Dallas Hunt family. What a clan. Fascinating stuff.

You two fucking crack me up, I don't even know where to start with this. I'm thinking there needs to be a "Financial Crisis: The Musical" starring your crazy asses. I can direct. Smoky is Executive Producer, naturally.

Anonymous said...

If Mel Brooks can give the world "Springtime for Hitler", there is absolutely nothing stopping you (and Smoky).

Anonymous said...

http://www.youtube.com/watch?v=K08akOt2kuo

(just in case you have not seen The Producers)

I <3 Mel Brooks.

Anonymous said...

The Producers is a musical adapted by Mel Brooks and Thomas Meehan from Brooks' 1968 film of the same name, with lyrics by Brooks and music by Brooks and Glen Kelly. As in the film, the story concerns two theatrical producers who scheme to get rich by overselling interests in a Broadway flop.

Seeing a pattern here? We are trapped in a parrallel universe where we are all cast members of a Mel Brooks production.

Anonymous said...

You don't think that maybe Mel Brooks IS the Almighty? Nah...

Anonymous said...

I have concluded that Mel Brooks is the Almighty and Smoky is his Prophet.

Anonymous said...

That being fact, I've deduced that my cat in reality is the Second Angel of the Apocalypse.

Anonymous said...

Lo and behold, while surfing CNN I finally get a page with a photo of the infamous little prick.

Sheesh. What passes for a man these days.

Jr. I'm pretty sure you could take him (even if you had a cold).

Anonymous said...

Like I said before about the French gene pool depletion and Napoleon...

This guy appears to be the posterboy for that theory.

He looks like the type that would totally get off on getting his ass kicked by a girl if you ask me.

Anonymous said...

beat me Mommy, beat me! can the hamster watch this time?

Have to break out the Nazi uniform first though and drive through the Arc de Triomphe.

Anonymous said...

That might be a little much...

You could probably just put this up on the wall while you're kicking his ass and that would probably be good enough.

Anonymous said...

or this but only on special days and the third Sunday of the month.

Anonymous said...

emoticons! The plot thickens!

Yup, you're probably right in that he was trying to fuck her. But, in reading the text, this guy seems to have been going through a crisis of conscience. Frankenstein? Monstrosities? Who the fuck talks about that of their own work and isn't going through a moral tar pit?

Jan. 23, 2007:

“More and more leverage in the system, The whole building is about to collapse anytime now … "

Then (to counterbalance this assclown) hop in the way back time machine and read a little vintage JDA...

And what was my message, anyway?

After weeks (perhaps months) of consideration, I've finally done it. The title is tentative, the content is tentative, the entire project is tentative depending on the following factors:

Response and Responsibility

That's it.

If no one's reading, I might as well not be writing. That part is pretty simple, no?

And if I'm not saying anything worth reading, why should I expect anyone to read it?


That's why I like coming here (plus you let me vent without editing me even when I'm claiming my cat is the second Apostle of the Apocalypse)

Anonymous said...

Locally, Claire McCaskill got some face time on the boob tube last night during the news as she laid out her own questions / comments for G.S. It was funny. It reminded me of being a teenager and being publicly chewed out by my grandmother in front of my goombah, no good friends. About three months ago, I wrote her telling her my thoughts about the investment banking role within the mortgage markets. I was doing my best to bait her into “stickin’ up for us po’ Missourah chilluns’ back home”. I even told her in polite terms that so far no man within the Senate had as big a set of balls as her (it is a Senator’s website so the decorum is a little bit different than JDA :>) Women love the idea of pushing a man around (well MOST women) especially when they believe their “little ‘uns is bein’ mistreated by that bad, bad man” so I’m hopeful that I pushed a few maternal buttons. Who knows? Columbus took a chance, right? She is a former MO state auditor.

Anonymous said...

If I were G.S. and had the same guy who took down Dan Rostenkowski and John Jenrette looking to score on my ass, I'd be worried.

Every politician going back to Pilate knows that the best way to restore the faith of the unwashed masses in the system is to put a few poor bastards up on a cross.

RICO! RICO! RICO! RICO! RICO!

Anonymous said...

I didn't want to put this up elsewhere lest someone get the idea I was trying to beat up on them but The Briar Patch is just part of the story.

Even clever ol' Br'er Rabbit almost let his pride get the best of him

Holder cut his legal teeth on this shit

RICO! RICO! RICO!

Anonymous said...

die Squid die Sheesh, you must be really busy or really disinterested. I can't get a rise out of you today - you're no fun.

Sorry, dear, was webinar-ing all day :)

Anonymous said...

"Sorry, dear, was webinar-ing all day :)"

Don't be sorry - tell me "hey, I'm busy over here with serious shit - go fuck yourself, Jeff"

Somebody's got candy on the brain today! I'm glad to hear you're busy, productive and hopefully profitable.

P.S. Still waiting for the sticker for the USS AlGore.

Anonymous said...

they are not yawning Many of them are not going to take a solid shit for while to come. Die Squid, Die!

Anonymous said...

YTD down 17.42% awwwww, hear that sound GS? It's my tiny violin playing "My Stony, Thorny Heart Bleeds for You". Now, on to pester the shit out of some unlucky staffer at Claire McCaskill's office who has to read crackpot e-mail. You know, when I'm retired and actually have ALL DAY on my hands to follow this shit, they'll probably take a hit out on me just to shut me up and get some peace.

Anonymous said...
Anonymous said...

Nothing new - he's just doing the Albert H. Wiggin shuffle. There's a picture for you - Lloyd dancing.

Anonymous said...

That GS ticker is down 15% for the month. I'm no mathemetician (and not a very good speller) but with that kind of trend, they will be in the penny stocks in six months. I wonder how many iddy biddy squids are out there in the ocean shorting their shares. They are as canibalistic as Chicago politicians. I'm starting on the chocolate pudding Jelly Bellys now as I'm plum out of buttered popcorn flavor.

Anonymous said...

-16.67% for the month - damn if that booty hole didn't get a work out today! You should pass them some of that Vaseline you have up on the Greece thread 'cause you know, even a Squid got feelings.

Anonymous said...

The Justice Department probe began weeks ago and is essentially on a parallel track with the SEC investigation, the sources said. While prosecutors and investigators are focusing on some of the same mortgage-related transactions as the SEC, the sources said, the Justice Department has cast a wider net.

'cause to catch and butcher the giant squid you tend to need a bigger net than the SEC has on its boat

Anonymous said...

In the 70's, the Hunts of Texas were the wealthiest family in the US. H.L. Hunt was possibly the wealthiest man in the world. He and the other 3 of "The Big Rich" built Texas starting during the Great Depression. His two sons went to jail for fucking around in the silver markets. If the Hunt boys can go to the clink, under the right set of circumstances, GS's days of running above the law appear to be coming to a close.
from daily reckoning

Anonymous said...

I have to say I'm kind of shocked that these assholes have not felt some kind of justice at this point I'm nearly speechless. I mean the Hunt boys were wealthy, well connected (crazy yes but shit many people are crazy once you start peeling back the layers of the onion) and they STILL got prosecuted. It's just sad that these fuckers continue to escape justice. Where in the fuck is some ambitious Atticus Finch young turk type who is looking to crack some skulls, chop off some ears for his necklace, put some notches in his pistol grip and take some names when you really need one? Maybe I just need to remain patient.

Anonymous said...

And while we revel in the knowledge that the short squeeze is causing massive pain for JPM, we are far more overjoyed that the days of Blythe Masters as head of JPM's commodities desk is coming to an end: any comparable massive admission of weakness by a trader is always and inevitably followed by some very high profile terminations.

Die you rotten fuckers, die!!!! ummm, you might want to consider closing that damned JPM Chase account and "Going Bankless" -- yaaaaayyyy! credit unions!!!!

Anonymous said...

Now I must know who in the fuck is this Blythe Masters character. Who the fuck names their kid Blythe - is it a girl, boy, it???? What.... Oh, it's a fucking woman, wouldn't you know. That's an attractive name, Blythe. There's a Blytheville, Arkansas which is very near West Memphis, Arkansas. One of my buddies calls it "The Spincter of the Southland" (and we're both from the South). Perhaps Blythe hails from Blytheville, Arkansas.

"If Warren Buffett is to be believed in his verdict that derivatives are "financial weapons of mass destruction" then Blythe Masters is one of the destroyers of worlds."

A goddamned woman - wouldn't you know it. The curse of Eve continues. British born no less - truly a fucking race that is ALWAYS on the hunt for getting something for nothing. ALWAYS looking to get someone else to do their heavy lifting. Should have let the Nazi's bomb them into oblivion.

British-born Masters is one of the most powerful women on Wall Street and is widely recognised as one of an elite group dubbed the "JP Morgan mafia" that fostered the creation of the complex credit derivatives at the heart of the current crisis ripping through Wall Street. Many of the highly qualified mathematicians and academics who worked on the credit derivatives market in the early days have gone on to run hedge funds and into high-powered jobs at other investment banks, but most of them started out at JP Morgan.

In a guide to understanding the instruments she had created, Masters sung their praises: "In bypassing barriers between different classes, maturities, rating categories, debt seniority levels and so on, credit derivatives are creating enormous opportunities to exploit and profit from associated discontinuities in the pricing of credit risk."

Suck my dick, Blythe.

In her spare time, she is a keen horsewoman.

Yeah, I'll bet she's a "keen horsewoman" - kind of like Catherine the Great was rumored to be a "keen horsewoman". Scratch that - go dig up Secretariat and suck his dick...

Anonymous said...

Her focus on the job reached almost comic levels when she famously took her wireless device into the hospital to get quotes on commodity derivatives as she was having a baby.

Well, isn't that sweet???? Apples don't fall far from the tree.... that kid should be really something in its "teen years".

http://www.guardian.co.uk/business/2008/sep/20/wallstreet.banking

http://www.bloomberg.com/news/2010-08-03/blythe-masters-says-don-t-panic-over-jpmorgan-commodities-loss-job-cuts.html

I hope this "Master of the fucking Universe" Masters bitch gets her princess ass handed to her (on a silver platter no less).

Anonymous said...

http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/12/06/benzinga668905.DTL#loopbegin

Anonymous said...

In recent days, rumors have been swirling on the internet that JPM's massive short position is about to blow up in their face in the form of an almighty short squeeze and potential COMEX default as large traders demand physical delivery of silver that COMEX does not have in their vaults.

J.P. Morgan is currently under investigation by the CFTC for allegedly manipulating the price of silver.


Suck it Blythe.

Anonymous said...

Markopolis was portrayed for years as a fucking tin hat wearing Chicken Little as he was telling anyone who would listen that Madoff and crew were nothing more than a bunch of low life snake oil salesmen. Finally, he's being vindicated.


"The investigation into the bank can be traced back to November 2009 when London metals trader and whistleblower Andrew Maguire contacted the CFTC to report market manipulation prior to it actually occurring. "

Maybe, maybe, maybe the people with the guns and the badges and the calculators will actually have learned something this time????????

Anonymous said...

Ms. Masters made her career early on by recognizing the potential for credit derivatives, hedges that banks use to offset the risk of loan defaults. Despite her youth, she had enough gravitas to convince regulators around the world of the essential soundness of the little-known financial instruments.

Hey Adam, take a bite of the delicious apple.... it's amazing....

Anonymous said...

“Don’t panic,” Masters told her team on the call, a recording of which was obtained by Bloomberg News. “No one’s going to get screwed. We’re not going to do crazy things on compensation at the end of the year.”

Competitors are “scared shitless of us...They’d better be, because this is a platform that’s going to win ... Every one of you needs to get away from the last six months, myself included, of pain associated with mergers and integration and the difficult market conditions, the losses that we’ve encountered, the nonsense that’s been in the newspapers ... remember that you work for a business that is one of the boldest and gutsiest and ballsiest businesses that I’ve ever had the pleasure and privilege to work with.”


Well, if the unwashed and physical silver buying Lower Slobovian masses have their way Blythe, they are going to chop off the nuts you claim to have and make you eat them.... live by the sword bitch, and you better be ready to die by it as well.

Anonymous said...

Daily Reckoning
I believe silver is probably a better play right now, with more upside than gold. I’d go for silver coins, without seeking any numismatic value. Just go for the Silver Eagles – bullion value – or any other high-quality metal issue from reputable mints.

Regards,
Byron King

Now, who you gonna believe? A former field historian with the Navy who gets up, puts on the robe, scratches his balls and goes and takes a piss after getting his glasses on and then heads down to the Mr. Coffee or some bitch from U.K.?

Anonymous said...

"she had enough gravitas to convince regulators around the world of the essential soundness of the little-known financial instruments"

Wonder how many dicks she had to suck and palms she had to grease to get that done...

Anonymous said...

The most famous speech in American political history was delivered by William Jennings Bryan on July 9, 1896, at the Democratic National Convention in Chicago. The issue was whether to endorse the free coinage of silver at a ratio of silver to gold of 16 to 1.

If the gold standard, and I might call your attention to the fact that some of the very people who are in this convention today and who tell you that we ought to declare in favor of international bimetallism and thereby declare that the gold standard is wrong and that the principles of bimetallism are better—these very people four months ago were open and avowed advocates of the gold standard and telling us that we could not legislate two metals together even with all the world.

I have to agree with Bryan's "thou shalt not crucify mankind on a cross of gold" but I wouldn't mind seeing Blathe put up on a cross of silver - I think I could sell tickets.

Anonymous said...

According to my calculations, Blythe Masters at JPM doesnt have the cash to reshort silver and gold until after JPM raises $4 billion. My analysis suggests that JPM has lost $1.2 billion in silver and $1.3 in gold short positions. These are conservatives estimates. If I am right, JPM is defenseless to stop the rise in silver and gold, which means the much anticipated correction won't happen until after JPM raise the $4 billion.

Anonymous said...
Anonymous said...

"There are two ideas of government. There are those who believe that if you just legislate to make the well-to-do prosperous, that their prosperity will leak through on those below. The Democratic idea has been that if you legislate to make the masses prosperous their prosperity will find its way up and through every class that rests upon it."
1896

LEAK THROUGH ON THOSE BELOW!!! Sound familiar, dear? This country has had this argument/conversation going on inside its collective head for a very long time.

Anonymous said...

"The bank's push into commodities roiled a lucrative sector dominated by Goldman Sachs Group Inc. and Morgan Stanley as J.P. Morgan poached executives from rivals and boosted its work force from roughly 125 in 2006 to 1,800 today. That makes the commodities desk the biggest on Wall Street that trades everything from power to silver. "

They are parasites who accomplish one thing - they make things that are necessary for human life to be more expensive than they need to be so that they can enrich themselves. They are a boil festering upon the ass of mankind and you have your checking account with them. You're either part of the problem or part of the solution.

Anonymous said...

"The danger for J.P. Morgan is taking on a very high overhead which can hurt them if results fail to achieve goals," said George Stein, managing director of New York commodities executive-search firm Commodity Talent.

Ms. Masters routinely became the face of J.P. Morgan in Washington, where she frequently represented the industry on everything from potential curbs on commodities trading to the financial regulatory overhaul.

Despite weak demand in the U.S. and Europe, oil prices climbed this week to near $90 a barrel, and gasoline prices have passed $3 a gallon on the West Coast and parts of the Northeast.

Why? If demand is down and supplies are plentiful — and they are — why would prices be going up?

Because Wall Street speculators are driving up oil and gasoline prices again — just in time to dampen holiday cheer.
Greedy and evil which kind of goes hand in glove, wouldn't you say? I guess JPM's overhead is high partly because Blathe insists upon being kept cunt deep in horse dick?

Anonymous said...

It's even worse on the West Coast, where average prices this week exceeded $3.15 a gallon, according to Energy Department data.

If oil prices keep climbing beyond $100 per barrel, as investment firm Goldman Sachs projects for 2011, higher fuel prices might blunt efforts by the Obama administration and the Federal Reserve to stimulate the weak economy.

If you're gonna get pissed, get pissed at the right people.

Anonymous said...
Anonymous said...

check out the names picked for these horses Is it just me or do these names just scream "Douchebag" from the highest mountain? King's Ransom, Global Advisors Bouncer, her favorite "Mane Man" - I like that one Blythe.

Anonymous said...

I've decided to refer to her as Blaaaaaaaaaaaathe.

Anonymous said...

Stuck on desert island

Choice

1 Blaaaaaaaaaathe

2 Copy of "Anal Prom Queens" DVD, player, t.v., a bottle of Walgreen's Baby Oil, a hamster wheel, wiring, electrical components, DC to AC converter and one healthy hamster


If Gilligan and the Professor can make all the comforts of home using banana leaves and bamboo, I should be able to get that TV and DVD player working. Hamster, don't get sick.

Anonymous said...

Hamster: Ready wheel? Let's go!

Anonymous said...

Well, if the unwashed and physical silver buying Lower Slobovian masses have their way Blythe, they are going to chop off the nuts you claim to have and make you eat them.... live by the sword bitch, and you better be ready to die by it as well.

Guess what Blythe? Your former traders are advising everyone they know to put on this trade come the first week of February. Is this what happened in the Decemeber contracts? Is this why silver went from $22 on September 30 to $29 by December 1? How much do you think silver will spike in February as we approach March 1? The traders think silver will be north of $45. Heck it went over $9 as we approached December and everyone who got a pay off in terms of a premium cash settlement will be back for more. And they are all gonna be bringing friends to partake in the bounty.

"Your former traders are telling everyone who would listen that all they need to do is purchase a huge amount of March contracts near the end of February and stand for delivery and they will all make 20 percent in a matter of days. Is this what you are hearing Blythe? If so, shouldnt you let the price of silver move up so that you can get some physical to deliver before March 1? "

Best regards,
Lamar and Bunker Hunt

Anonymous said...
Anonymous said...

So, if I'm understanding this correctly, JPM ain't gonna go down quietly and just take it in the shorts over bad shorts (pun intended)... given the sway I would think they hold over Fed policy all it would take is say a change in the rules over "hoarding" silver and say a rise in interest rates to pretty much clean the clocks of any silver bugs who have agreed to buy silver at some point in the future at a price that is higher than it actually realizes. Just playing devil's advocate here but given the inflation happening in food right now, the mania happening in metals (the Hunt boys Bunker and Herbert thought the US was headed to hell in a handbasket in the late 70's and were buying up silver like there was no tomorrow and then shipping it to Switzerland for safe keeping via jumbo jets - crazy as shit house rats) right now and the sentiment that the US is going down like a $20 whore, does anyone else out there think that our rate increases are just around the corner. I'm certainly no Blythe fan but these bastards aren't just gonna say "yup, you got us and we're gonna "shut it down" now" - ("shut it down" those were the words of one Hunt boy to another when they started losing their asses on silver 'cause they got greedy and married to an ideology and kept buying when they should have been selling) Just an idea. Silver might bust a gut in March and very quickly start busting a nut in April.

Anonymous said...

Am I smelling a rat or is it just my everyday paranoia flaring up?

"MCX to start trade in micro futures in silver from 18 Feb"

For the May and June contracts. Why do you build me up, buttercup baby, just to let me down? Is this Lucy setting up the football for Charlie Brown to come kick it (again)????? Is this Yogi Bera It's like deja vu all over again???? Tell me JDA, tell me....

Anonymous said...

more spitballing - I'm just intrigued by this (or my Ritalin isn't working)...

"While the paper market has been driving the spot price lower, the physical market appears to be as robust as ever. Sales of silver eagle coins for the month of January have already set a new all-time record, with ten days still left in the month. Furthermore, silver demand in China has quadrupled versus last year, as the emerging Chinese middle class looks for a hedge against inflation and the Chinese government encourages its citizens to buy gold and silver. "

"This is a relatively new phenomenon in Chinese culture, as ownership of precious metals was illegal just a few short years back. But this has all changed as China has become the largest producer of gold in the world and is expected to surpass India as the largest consumer of gold as well."

"Demand from China is not only coming from the citizens though, as the Chinese government has been accumulating massive amounts of gold and silver for their reserves. After not reporting gold reserves for six years, the Chinese government in 2009 made a surprise announcement that they had nearly doubled their gold reserves to over 1,000 tons. They have been doing this quietly via buying up the production from Chinese mining companies, as well as making purchases in the open market via intermediaries. "

So in Hi - Ho Silver Away - Act II are the Bunker boys being portrayed by the Chinese and spooked middle class Americans? Is Bernanke's talk a bunch of hoooey about keeping rates zero for the forseeable future - an elaborate Basketball Jones head fake done convincingly with a balding head? Are the speculators in the metals markets going to choke on their future obligations to buy gold / silver at even higher prices later in the year with short positions making out like Frito Banditos if a rate increase comes from the Fed and another change in rules takes place????? The Hunts eventually went bankrupt over their silver positions and would have been eating beans for the rest of their lives if Daddy Hunt the crazy ass oil tycoon had not set aside huge trusts for them when they were children. OOOOOOOOOh, the plot thickens....

Anonymous said...

http://www.commodityonline.com/news/China-vs-JPMorgan-the-battle-over-gold-and-silver-35898-1-1.html

So, do you remember a time when people were cheerleading housing talking about how there was a land shortage and housing shortage and values were expected to just continue to rise because the supply was NEVER going to be able to keep up with demand and blah, blah, blah, blah...???? Talk with anyone back in San Francisco about housing recently? (or anyone in California for that matter?)

Anonymous said...

still out there

We'll have to wait to see what Holder's response to Grassley is later this month... stay tuned....

Anonymous said...

It isn't as though the world was a safe and cozy place in 1979. I love going through these headlines - Michael Jackson releases "Off the Wall", Jimmy Carter attacked by a swamp rabbit, Islamic Republics established, Disco Demolition Night at Comiskey Park, damned fine times, damned fine times.

Anonymous said...

when rabbits attack no wonder the Hunt boys wanted to put all their dollars in silver and fly them to Switzerland - what's the world comin' to when swamp rabbits are copping a 'tude with the leader of the free world? What's next? Cats living with dogs? (oh that's right - NO MOVIE REFERENCES) I got so panicked that I put all my dollars in Billy Beer!!!

Anonymous said...
Anonymous said...
Anonymous said...

everything old is new again

"Bunker Hunt’s 1961 discovery of Libya’s Sarir oil field most likely made him the world’s richest private individual (on paper, anyway), until the Qaddafi regime nationalized his holdings, in 1973."

Bunker should be having a good laugh at today's current events - here is to wishing him well. Everything that goes around, comes around (eventually).

W.C. Varones said...
Anonymous said...

The Hunts continued to accumulate silver throughout 1979. Again from Larry LaBorde:

"Late in 1979 the CBOT changed the rules and stated that no investor could hold over 3 million oz of silver contracts and the margin requirement were raised. All contracts over 3 million oz per trader must be liquidated by February of 1980. Bunker accused the COMEX and CBOT board members of having a financial interest in the silver market themselves. Investigations later found that many had substantial silver short positions. Bunker knew that a shortage now existed or they would not be screaming so loudly. He bought even more. The price on the last day of 1979 was $34.45/oz. At this point Bunker and Herbert held 40 million oz in Switzerland and 90 million oz of bullion they jointly owned through International Metals Investment Company. In addition to all that, IMIC had contracts on another 90 million oz due for delivery that March from the Comex, bringing the grand total to 235 million oz. The younger brother, Lamar, had even entered the arena and had taken a $300 million dollar, 10 million oz, silver position by the end of 1979."

It is good to be the rule book writer (long term)

"In early January, it became evident that COMEX intended to change the rules of the game"

Taking the long view, I'll stick with history on this one say UN UN Yikes!

Anonymous said...

With this final act the brother's older sister, Margaret, finally put her foot down and demanded to know just what Bunker had intended to accomplish in the silver market? Bunker sheepishly replied, "I was just trying to make some money"

In God We Trust, baby, In God We Trust.

Anonymous said...
Anonymous said...

Here's Bunker - maybe the richest swinging dick on the planet at the time and an oil exploration king in foreign lands - getting called on the carpet by his older sister, Margaret and being made to explain his actions. I'm guessing Margaret might have whipped his ass a few times when he was a youngster and made a lasting impression on him - lmao.

Anonymous said...

he who writes the rule book usually writes rules that will make him the winner So my brother and I are bullshittin' on the phone the other day and he's put a few nickels into a Fidelity EFT that pays a return based on the spot price of silver - presently he's pretty giddy about his recent gains and I'm happy for him. But, at the end of the day, he and the Smug Bastard are both cut from the same piece of cloth. He's saying "Too good to last forever - even complete fucking morons have caught on to the buy silver - it always goes up" train of thought. So, he keeps a wary eye on the rule makers. When learning to fly a small plane, pilots are taught: Prepare, make your plan and fly your plan - when the environment changes (as it always does), change your plan.

Anonymous said...

"You can't make this up: basically the world financial mafia says Mark to Myth when prices are low, and Mark to Market (on selected assets) when prices surge to a record."


Shocking, don't you think Adrienne? (snicker, snicker)

Anonymous said...

Kansas City Federal Reserve Bank President Thomas Hoenig has a message for Ben Bernanke, and he's not afraid to say it over and over: Raise rates.

I don't know if we're seeing a signal here but I'm wondering is someone needs to start playing "Turn the Lights Out, The Party's Over"

My motto has been "You don't have to take away the punch bowl entirely Fedheads but you don't need to spike it with so DAMNED much tequila". ALCO meeting this month - we believe we could actually make a few sheckles IF rates were rising and our investment income could make some sort of half assed recovery.

Anonymous said...

And yes, Turn the Lights Out is real Willie Nelson and Johnny Cash song Speaking of music, when did 70's style fros come back. I saw some band called Wolfmother doing a video called Love Train and I WAS TOTALLY BLOWN AWAY BY THE FRONTMAN'S ROCKING FRO!!!!

Anonymous said...

You know the Mint is going to start selling some really pretty silver (and gold) coins this Spring and Summer. Demand and prices should be nice and high - YAY Uncle Sam!

EVERYBODY is saying - It's going higher and higher and higher. That makes me nervous.

Cui Bono, Cui Bono

Anonymous said...

So PRETTY and SHINY

Precious, precious, precious!" Gollum cried. "My Precious! O my Precious!"

Shit, I'd like to introduce you to fan.

wcv said...

Why are people still commenting on this old thread?

And silver, OMG! To think we could have loaded the boat just a few years ago in the single digits.

But then a few years ago, the depth of Bernanke's depravity was not fully apparent.

Better late than never. For those who don't have silver yet, I'd recommend dollar-cost averaging in with a few hundred bucks a month into bullion coins you can keep off the grid. Stop funding your 401k if that's what it takes. There's not much time left to start accumulating real money before dollar collapse.

Anonymous said...

I keep coming back here because I don't trust the sharks and snake oil salesmen (including Blythe Masters) at the large banks any further than I can throw them (which isn't very far even in the case of that skinny little, horse humping, credit default swap creating, smarmy looking pommy bitch). If they are still shorting silver (which I don't know), there is a reason for it - JPM Chase didn't get to where it is today by being dumb, or altruistic, or completely forthcoming. They know something - or I'm just a paranoid delusional batshit blogger commentary idiot.

Anonymous said...

"And silver, OMG! To think we could have loaded the boat just a few years ago in the single digits"


And what is to say that some "special friends" of the silver shorts holders didn't do just that back when it was trading at 6 per ounce just a few years ago? You know, someone who would make a little side deal that they would dump a shit load on the market at a "special price" for their "special friends" who would then immdeiately re-sell or sell the contract? I'd love to know who was loading up on silver back in 2005 - 2006 which wasn't really all that long ago (unless you are my cat and then it would seem like it was an eternity 'cause you know, you're a cat and have no real concept of time). I <3 trolling you guys.

Anonymous said...

See, the language is what bothers me with some of these places that are pumping silver.

Worldwide market demand for silver is growing, while supplies of silver are quickly disappearing...

Disappearing??? really??? Vanishing??? It makes me imagine that people's silverware and rings and wedding goblets given to them by Auntie Em are just vaporizing before their very eyes... OMG no more turquoise and silver, desert southwest motif jewelry????!!!????

"An explicit statement of this, along with the further principle that nothing can pass away into nothing, is found in Empedocles (ca. 490–430 BCE): "For it is impossible for anything to come to be from what is not, and it cannot be brought about or heard of that what is should be utterly destroyed".

W.C. Varones said...

Well, it ain't disappearing, but it's going into the vaults of the wealthy, and they ain't planning on selling it to you anywhere near $35 an ounce.

Did you know there's only one ounce of gold that's been mined per person in the world? And sure, mining annually adds a little to the supply, but that barely keeps up with population growth and certainly doesn't keep up with paper currency issuance or the increasing wealth of Chinese and Indians who are going to want their ounces.

Same math applies to silver as gold, there's just somewhat more of it so you need a bigger vault if you want your share.

Anonymous said...

Silver and gold won't buy back the beat of a heart run cold, Silvio, I gotta go, find out somethin' only dead men know All pun makin aside, I've advised Brother Chuckles to keep a wary eye on what the rule makers do after silver gets north of 45. When it does, that's when the excrement starts hitting the ventilator in earnest. Yeah, yeah, yeah - only one ounce per person, yada, yada, yada - I wonder how many people have been able to eke by without a plasma TV or how many bimbo's have still managed to get a date without the aid of a fake set of ta ta's, or how many boys managed to live and actually grow up having to make do with Sears Tough Skins jeans while all the cool kids wore Levi's... blah, blah, blah....

Anonymous said...

well, what's this - some other Ted in the Basement running a blog is saying that Max Keiser's claim of JPM Chase holding massive silver shorts (NOT BVD's or UNDERROOS) is just that - an ubstantiated claim designed maybe to give demand fr physical silver a boost and then maybe prices as well??? Jesus H. Christ - who is to be believed in this clusterfuck? Then this out of the NY times... What's a boy to believe?

Anonymous said...

Well, it ain't disappearing, but it's going into the vaults of the wealthy, and they ain't planning on selling it to you anywhere near $35 an ounce...


I think the Hunt boys had the same thought process going on....


ah yes, Man plans and God laughs.

Anonymous said...

Some people made money the old-fashioned way during the crash — i.e., by stealing it. After the initial crisis on Black Thursday, a group of high-powered bankers tried to stabilize the market by using a $130 million pool of funds to buy stocks, sometimes at prices above market value. A member of the group, Albert H. Wiggin, head of Chase National Bank, began short selling his own portfolio at the same time he was committing his bank's money to buying. He shorted more than 42,000 shares, making more than $4 million. Because he used a Canadian shell company to buy the stocks, he didn't even pay taxes on his gains. Though forced to resign in disgrace, Wiggin otherwise went unpunished and got to keep the money.

I'm sure he cried some real tears when he was forced to resign.

can't have a proper crash if you don't have a proper mania and price escalation, now can you?

If they're hungry enough, sharks will eat one another. Keep your greed in check.

Anonymous said...

notice what he DIDN'T switch to when he got out of Treasuries

"The fund has fled to cash: Its cash position has jumped to a staggering $54.5 billion, up from $11.9 billion—a leap of over 350 percent, according to Durden"

In God we Trust

splurge on ANOTHER tatoo? I mean it is cool looking and all but doesn't that at some point get toxic. Maybe not - I mean they have advanced since Queequeg

Anonymous said...
Anonymous said...

The reason McCaskill can afford to write such large checks, and a private airplane, is her marriage in 2002 to Joe Shepard, who has made a fortune in the affordable-housing industry. The Center for Responsive Politics puts McCaskill's net worth at $15 million to $27 million.

Why do we push credit bubbles that are chasing after hard assets? Because it pays well, bitches.

Anonymous said...

Witchy poo Blythe Masters is getting a large amount of face time over at Silver Bug Jesse's Cafe Americain. He (or she) is funny... Baba Yaga is the name for her there on that blog....

Don't trust that scrawny, yeast infected, horse humping pommy bitch any further than I can throw her (even on a good day after I've hads me spinach)

- Popeye

p.s. - she does look pretty thin... new joke.

what do you call a Pommy banker with a yeast infection?

Bad teeth with cheese

Anonymous said...

A couple of pension funds are testing the waters to see if it is warm enough to do some Squid hunting. One of them is a *plumber's* union pension fund. I got a chuckle out of that even though I'm not sure why. I mean, here we've got Hoenig, the son of an Iowa plumber but who grew up to be a central banker, and maybe Daddy's old union is accusing an investment bank of being a bunch of crooks and knowingly selling bad paper.... Bizarro World, huh? Sheesh, wonder if Hoenig's daddy is turning circles in his grave right now.

Anonymous said...

I have NOT heard back from Claire's office (snicker). What I'm hoping is that in her bid to keep her Senate seat between now and 2012, she will attempt to take some heat off of herself by seeking out some evildoer's (thank you W) to throw under the bus. Go bitch, go!

Dear Claire,
I have some suggestions on how you might redeem your recently tarnished public image.

blah, blah, blah

-Your Faithful Constituent

under my breath - like that little guy on the TV show, The Middle... go, bitch go....

Anonymous said...

See, that's what needs to happen. We need to be doin' some button pushin'. Hoenig, are you reading this shit? What would your daddy think if he saw some of the shit that is going down? What would dear old pops have to say about some investment banking asshole in a suit taking money from guys who go out in the middle of winter to clean out a clogged septic system so some crusty old bag can take a shit inside her own shack instead of going to the neighbor's house?

Let's email him.

Anonymous said...

let's DO! got an e-mail address?

Anonymous said...
Anonymous said...

"This settlement is a stark lesson to Wall Street firms that no product is too complex, and no investor too sophisticated, to avoid a heavy price if a firm violates the fundamental principles of honest treatment and fair dealing," Robert Khuzami, director of the SEC's Division of Enforcement, said in a statement. The suit charged Goldman of deceiving clients by selling mortgage securities that were secretly designed by a hedge-fund firm to cash in on the housing market’s collapse, putting a spotlight on one of several Wall Street firms, such as Morgan Stanley, J.P Morgan Chase, Deutsche Bank, Bank of America and UBS, that participated in the structuring and marketing risky products as the US housing market was beginning to falter.

Anonymous said...

When much younger, I did a short period of time as an apprentice...crawling under houses, digging ditches, passing tools, snaking drains clogged with all manner of shit...hot in the summer and cold in the winter but smelly most all year 'round.

Anonymous said...

Hoenig's Midwestern upbringing in Fort Madison, Iowa, instilled more than a strong work ethic. It exposed him to much of the region's economy.

His grandfather farmed, which Hoenig said taught him about markets. His father owned a small plumbing business, where a 9-year-old Tom helped with inventory and grew up to learn about "the harmful effects of inflation."

And Grandpa Hoenig and Pops Hoenig did more to help people than any ass clown pin head at an investment bank. Eating, having clean drinking water and being able to take a shit *indoors* (especially in January) ranks super high on the Smug Bastard's short list of "must haves".

....super high