Big Dumb Bankers Baffled By Gold

I can tell you why gold puts a sour taste in banker's mouths: because it cannot be inflated indefinitely. What surprises me is that they're also against paper gold, which seems to me like a banker's wet dream but what do I know?


Private banking executives, say gold's glittering price tag is or should give their wealthy clients pause.

"We're not really recommending gold right now, just because it's at a level where there are things driving it beyond the types of things (where) that we can add a lot of value," U.S. Trust President Keith Banks said at the Reuters Global Private Banking Summit in New York.

Instead, Banks said gold prices may reflect the surge in demand for gold exchange-traded funds, listed shares that purchase physical gold, and broader worries about government spending leading to rapid price inflation.

"So what exactly is leading to gold at the levels it's at? Your guess is as good as mine," said Banks, who runs the Bank of America (BAC.N) private bank unit.

If these guys can't figure out what's driving gold's awesome performance, we're far more doomed than I initially suspected.

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.


Anonymous said...

They hate it because it unravels their ponzi, mark to market, fantasy paper asset orgy that they skim without recourse...look at otc derivatives, residential and commercial real estate, and all those fugazy dividend recap hosejobs used to extract wealth for the few....

Ding ding ding, we have a WINNER!

W.C. Varones said...

The scary thing is that Mr. Banks works for U.S. Trust, which is supposed to be in the business of preserving wealth, not shilling for the Dirty Fed.

Oh, wait. U.S. Trust was bought by TARP-sucking Bank of America. Never mind.

Hey Banksy, I know you're not too good at math, so how about a picture?