It's the Fed's Fault JP Morgan is Manipulating Silver
Right? That's what I took from this little winner. The NIA via Zero Hedge:
On December 11th, 2009 NIA declared silver the best investment for the next decade. In our December 11th article, we said that it wasn't a coincidence that the very day Bear Stearns failed was the same day silver reached its multi-decade high of over $21 per ounce. We went on to say, "The reason why we believe the Federal Reserve was so eager to orchestrate a bailout of Bear Stearns, is because Bear Stearns was on the verge of being forced to cover their silver short position."
JP Morgan took over the concentrated short position in silver from Bear Stearns and gained complete control over the paper price of silver. Within weeks, JP Morgan was able to manipulate the price of silver down to below $9 per ounce. NIA believes they were able to drive the price of silver down through "naked short selling," selling paper silver that is unbacked by physical silver.
Never wanting to be accused of being one of those weirdos who believes in physical markets and shoos this ETF garbage that's obviously way WAY overleveraged, I'll stay out of it.
It's cool, the recent CFTC hearings will prove that point without me having to bother:
NIA believes the precious metals markets are currently being artificially suppressed by paper gold and silver that doesn't physically exist. At last week's CFTC hearings, Jeffrey Christian of the CPM Group admitted that banks have leveraged their physical bullion by 100 to 1. This means for every 100 ounces of paper gold/silver that trade, there could be as little as 1 ounce of physical gold/silver in the vaults backing it. However, Mr. Christian sees no problem with this because he says "it has been persistently that way for decades" and there are "any number of mechanisms allowing for cash settlements."
Well it must not be important if it's always been like that and there are endless numbers of asshats lined up waiting to bail out these phony markets should the need arise.
But what if all that cash is tied up in, say, a European slush fund?
If you are still asking "Why Lehman and not Bear Stearns?", this may help you answer that question.
In other words:
"JPMorgan acts as an agent for the Federal Reserve; they act to halt the rise of gold and silver against the US dollar. JPMorgan is insulated from potential losses [on their short positions] by the Fed and/or US taxpayer"