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CFTC To Vote On 10% Position Limit Proposal Next Week

Tyler Durden's picture




 

Just crossing the wires now. If this passes, Blythe is most likely toast.

More as we see it.

 

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Thu, 01/06/2011 - 16:53 | 853815 Cdad
Cdad's picture

Selling JP Morgan into it....

Thu, 01/06/2011 - 16:58 | 853834 NoLongerABagHolder
NoLongerABagHolder's picture

Selling? Why would you do that? Buy the f-in dip.

Thu, 01/06/2011 - 17:02 | 853858 Cdad
Cdad's picture

Because I'm an f'n rebel.  I'll leave the dips for you, buddy.

It took a lot of volume in that last hour just to hold it together.  Euro rolls over tomorrow and blows dip buyers' minds...

Thu, 01/06/2011 - 20:11 | 854461 Turd Ferguson
Turd Ferguson's picture

I just don't see how this is PM positive in the short term. The market is telling you otherwise.

Thu, 01/06/2011 - 23:19 | 854958 Cdad
Cdad's picture

I agree...it is not positive for PMs in the short term.  This story is not positive anything [if your measurement is price appreciation]. 

It is positive in terms of regaining some measure of control over criminal syndicate Wall Street bankers that are currently running amok destroying almost everything in sight as they try to figure out the perfect algorithm for arbitraging everything on the surface of the planet...to death...in mere minutes.

I guess that is why I chose to respond to the story by selling JP Morgan.

I'm confused by your post, Turd.

Cdad

 

Thu, 01/06/2011 - 16:58 | 853837 Dr. Richard Head
Dr. Richard Head's picture

Buying silver now.  Not that it could possibly pass, but still a good silver buy opportunity yes?

 

Thu, 01/06/2011 - 17:08 | 853878 terryg999
terryg999's picture

I think so too.  Monday might be better, but what is .35 - .50 over the next 2-3 years?

Thu, 01/06/2011 - 17:11 | 853883 Dr. Richard Head
Dr. Richard Head's picture

What is it?  Nothing more than a difference between the amount of toilet paper required for ass wiping.

 

Hi-yo Silver away!!!!! - The Lone Ranger

Thu, 01/06/2011 - 17:23 | 853949 Oracle of Kypseli
Oracle of Kypseli's picture

There is no movement on gold or silver spot after the news.

Is that baked in?

Thu, 01/06/2011 - 17:28 | 853958 goldmiddelfinger
goldmiddelfinger's picture

It's baked in like constipation. It's sooo hard to shyt bullion

Thu, 01/06/2011 - 17:35 | 853975 Dr. Richard Head
Dr. Richard Head's picture

I don't know who junked you because that was pee in your pants funny.

Turbo Timmy suggests you try some fiber (aka Fed Notes) for your condition. 

Thu, 01/06/2011 - 17:50 | 854017 goldmiddelfinger
goldmiddelfinger's picture

She totally set up the rim shot

Thu, 01/06/2011 - 17:55 | 854031 Dr. Richard Head
Dr. Richard Head's picture

I think these charts really show a bitmore about what is happening in the metals market, at least from gubermint numbers - http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=sales&year=2011

Thu, 01/06/2011 - 18:06 | 854058 goldmiddelfinger
goldmiddelfinger's picture

Eagles/bullion purchases represent only the un-levered buyer using a musket and not any true seller opinion. The two sided futures spec is the guy with enriched plutonium and a delivery system. (AKA The Bunkie Hunt/Bache method)

Thu, 01/06/2011 - 17:30 | 853965 NumberNone
NumberNone's picture

ZH tends to gets news out before the world even has a chance to notice it much less read and digest it.  If it is going to move markets it will be tomorrow or maybe even next week. 

Thu, 01/06/2011 - 18:04 | 854055 Dr. Richard Head
Dr. Richard Head's picture

Which is exactly why I am OCD on this site.  In fact, my family is about to stage an intervention. You would think at 32 I would have the right to get informed as I wanted, but they say it is excessive. 

Hi, my name is Dr. Richard Head, and I a Zerohedge-a-holic.  One year and three weeks ago I encountered this site which spoke the truth about matters and actually substantiated their news with facts and charts.  They cut through the bullshit of the boobtube and ever since then I haven't been able to function as the rest. 

Thu, 01/06/2011 - 18:21 | 854103 breezer1
breezer1's picture

hello, my name is breezer1 and i am a zerohedgeolic. i also am addicted to bill banzai7 media. where's the next meeting?

Thu, 01/06/2011 - 19:06 | 854225 MachoMan
MachoMan's picture

Bob.  Bob had bitch tits.

we're still men

yes, we're men

men is what we are

Thu, 01/06/2011 - 19:10 | 854240 Max Hunter
Max Hunter's picture

Hi Dr. Head

Hi. Mr. Breezer

Thanks for attending.. Coffee is in the back and 7 min cigarette breaks are scheduled for every 15 minutes. We hope the 8 minutes between cigarettes provide you with helpful reflection.  

Fri, 01/07/2011 - 01:47 | 855185 strannick
strannick's picture

 

 

Me too, but Im not taking any 12 step program, though I would buy that "Im ..... and Im a ZH-a-holic' T-shirt.

Thu, 01/06/2011 - 19:51 | 854378 Chappaquiddick
Fri, 01/07/2011 - 02:33 | 855252 Red Neck Repugnicant
Red Neck Repugnicant's picture

This news has been obvious for 7 months.  It was part of the Dodd-Frank Bill from last July.

You can be rest assured that the vampires at GSCI will still win.  While the proposal sets position limits on investment banks' proprietary accounts, it will allow them to hold positions on behalf of end-users like ADM, Kraft et al.  

Why doesn't ADM just hold these positions themselves?  It's just another regulatory reform shell game that still enables the vampires access to your blood. 

Fucking bullshit, as always.

 

Fri, 01/07/2011 - 09:58 | 855734 tamboo
Thu, 01/06/2011 - 19:34 | 854321 El Hosel
El Hosel's picture

    Better watch this all play out, key reversals in currencies and market are overdue. Silver is good, cheaper silver is better.

Thu, 01/06/2011 - 19:36 | 854326 El Hosel
El Hosel's picture

  

Thu, 01/06/2011 - 20:03 | 854422 blindman
blindman's picture

.

Thu, 01/06/2011 - 20:18 | 854479 brushfire
brushfire's picture

good luck bro. i dont know what position limits will mean for the price of any commodity, but i am SURE the position limit rule (if enacted) will have absolutely NO impact on JPM or its share price. however, i disagree with roboretard and others who think the banks are invincible on this issue. you cant defy the laws of supply/demand forever - look at the morgtage market. eventually supply/demand will dictate the price of gold and silver. when that occurs is anyone's guess. trading on CFTC "rule changes" is a suckers bet.

Thu, 01/06/2011 - 16:55 | 853823 Cleanclog
Cleanclog's picture

OT but who got the jobs # leak for tomorrow.  Close a quick buy, some PDs know something.

Thu, 01/06/2011 - 16:58 | 853841 EscapeKey
EscapeKey's picture

Huh? All I see is the usual PPT ramp job before close, to make sure we don't drop more than the allowed 0.2% in a day.

On basis of Macy and Target BEATING expectations (*), why wouldn't the market be up?

 

(*) Q1 '95 expectations.

Thu, 01/06/2011 - 17:02 | 853857 Cleanclog
Cleanclog's picture

Good enuf.  A little fade at end, so not the last 10" rocket it first seemed.  A non event waiting for tomorrow.  More than our unemp #, the bigger news will be out of Europe and more shenanigans, not that US Centric markets will care.

Thu, 01/06/2011 - 17:20 | 853926 ZeroPower
ZeroPower's picture

Lots of ppl suggesting a nice healthy number. BarCap suggested something like 400K, way above consensus, other banks ive heard say they expect in the 200k range. Also, perhaps more importantly, ben shalom is speaking an hour after the # comes out, hes expected to reaffirm the need to finish QE2 and potentially discuss what lies on the path ahead.

After not being in the market all of last yr, i BTFD yesterday and will probably hold for a little while as, despite joking bout BTFD, i thought, why the hell not.

 

Thu, 01/06/2011 - 19:48 | 854364 Abiggs
Abiggs's picture

Pos limits in energy have hit quite a few gas & power shops. Hard to make money when you're capped at 7k contracts across all months and basis trades around $4 bucks. Metals traders will soon feel it too...

Yet the trillions floating around in credit derivatives are A OK...

Fri, 01/07/2011 - 09:58 | 855740 ZeroPower
ZeroPower's picture

Yes, limits are a bitch but you deal with them. Also doesn't hurt the massive gains comm. shops made the past few months, some traders prob got a bit more leeway from bosses lol.

Cred der's...yes, well, if theres no bid for your particular HY POS, then its not 'really' worth 0, just N/A ;)

Fri, 01/07/2011 - 12:11 | 856308 Abiggs
Abiggs's picture

Not much leeway around here - no desk head wants a pending CFTC investigation on their hands. Our "hedging" business, which has normally been the cash cow, had the worst year on record...

Crude traders made some coin this year but the same can't be said about gas. Pure gas shops had a tough year...

Thu, 01/06/2011 - 16:56 | 853831 EscapeKey
EscapeKey's picture

How many CFTC commissioners would you have to pay off to.. ehm... influence the verdict?

Thu, 01/06/2011 - 17:38 | 853984 fockewulf190
fockewulf190's picture

The Bears said in part II that JPM has two on the payroll. 

http://www.youtube.com/watch?v=uPg4qTNTP-E&feature=player_embedded

Thu, 01/06/2011 - 19:15 | 854269 Max Hunter
Max Hunter's picture

Are you talking about the ones not already on the payroll?

Fri, 01/07/2011 - 02:26 | 855243 Lord Koos
Lord Koos's picture

I'm not sure that "news" gotten from animated bears is always the thing to follow.

Thu, 01/06/2011 - 16:58 | 853838 dan10400
dan10400's picture

If something like this would pass and JPM would be toast, isn't it all the more reason to expect that it will not pass?   I mean, what is the track record on this type of bet?

Thu, 01/06/2011 - 17:25 | 853952 buzzsaw99
buzzsaw99's picture

+1

Thu, 01/06/2011 - 17:42 | 853997 tmosley
tmosley's picture

No reason to think they would actually be toast.  Their short position might blow up, but any losses will just be papered over.  

All it means is PM prices will rise.  TBTF won't be hurt by this any more than they were hurt by their bad mortgage bets.

Thu, 01/06/2011 - 18:13 | 854091 bugfixx
bugfixx's picture

Any losses will be eaten by the American taxpayer. The banksters don't do losses.

Fri, 01/07/2011 - 02:28 | 855248 Lord Koos
Lord Koos's picture

If JPM has outsourced their short positions and their manipulations then nothing will change in the near term.

Thu, 01/06/2011 - 16:59 | 853844 firstdivision
firstdivision's picture

We all know if it is to be "voted" upon that it will ultimately fail.  Same old dog and pony show.

Thu, 01/06/2011 - 19:49 | 854377 Abiggs
Abiggs's picture

First, it has been a while for me - I recently came across one of your comments from this summer and couldn't help but put it up...

by firstdivision
on Tue, 07/06/2010 - 23:36
#456073

What you are implying is that technicalities are the end all be all.  Did you stop and think for a second why desks have been unwinding a lot of risk lately?  Maybe the technicals are not correct on their calculus.  It is too hard even with Mandelbrot's model to emulate randomness (which I hope you do not subscribe to the EMH as your professors like to tout).   You can go long on your technicals for the short-term and I will sit short for the long term.

No hard feelings buddy :)

Thu, 01/06/2011 - 17:00 | 853845 topcallingtroll
topcallingtroll's picture

The silver top is in! Dont forget you heard it from the troll first.

Thu, 01/06/2011 - 18:51 | 854191 oddjob
oddjob's picture

If the top has been put in you are roughly 31 years late on that call.

Thu, 01/06/2011 - 16:59 | 853846 apberusdisvet
apberusdisvet's picture

Tyler: will these hearings be public and if so, please provide a link so that we can watch them

Thu, 01/06/2011 - 17:01 | 853847 SDRII
SDRII's picture

"IF" it passes it will be phased in over 20 years bit like basel. JPM = Sempra = Singapore Gold vault

Thu, 01/06/2011 - 17:01 | 853850 NOTW777
NOTW777's picture

they gave JP time for mitigation measures

Thu, 01/06/2011 - 17:01 | 853855 qussl3
qussl3's picture

Wouldnt they just get a bona fide hedgers exemption?

Wouldnt be a surprise if they finagle a way to force the longs to close to meet the 10% limit thru some wonder clause.

Thu, 01/06/2011 - 17:05 | 853865 Spaceman Spiff
Spaceman Spiff's picture

Blythe?   For casual observer who is unfamiliar with this person/group?

Thu, 01/06/2011 - 17:07 | 853871 cswjr
cswjr's picture

Blythe Masters, head of JPM commodities group, wicked witch of the east, etc. etc.

Thu, 01/06/2011 - 18:23 | 854113 e_goldstein
e_goldstein's picture

you forgot future whore for rat meat.

Thu, 01/06/2011 - 21:21 | 854658 Yits and the Yimrum
Yits and the Yimrum's picture

developer of CDS and JPig's silver short manger

Oh the humanity Blythe

doing god's work; a shemale Gordon Gecko

Thu, 01/06/2011 - 17:19 | 853918 CrazyCooter
CrazyCooter's picture

Oh, she likes to ride horses. Quick, we need a blythe-on-horse-hiyo-silver mash up!

 

Cooter

Thu, 01/06/2011 - 17:43 | 854000 tmosley
tmosley's picture

After this is passed, maybe we'll see a donkey riding Blythe down in TJ.

Thu, 01/06/2011 - 17:54 | 854025 ColonelCooper
ColonelCooper's picture

ROTFLMAO

Thu, 01/06/2011 - 17:57 | 854035 goldmiddelfinger
goldmiddelfinger's picture

I'll just bet

Thu, 01/06/2011 - 19:07 | 854229 MachoMan
MachoMan's picture

mr hands style

Thu, 01/06/2011 - 17:16 | 853909 Spaceman Spiff
Spaceman Spiff's picture

Thanks

Thu, 01/06/2011 - 17:15 | 853867 What_Me_Worry
What_Me_Worry's picture

JPM will just become a gold and silver miner for hedging purposes.  With the full blessing of the pope(the Bernank).

http://static.businessinsider.com/image/4c5818a47f8b9a0521560100-369-237...

Thu, 01/06/2011 - 17:41 | 853993 colonial
colonial's picture

very funny alfred...

Thu, 01/06/2011 - 17:05 | 853868 Sutton
Sutton's picture

Exemptions for hedgulators, I'm sure. 

Thu, 01/06/2011 - 17:19 | 853923 NotApplicable
NotApplicable's picture

Absolutely. There is no way they will let the CFTC takedown JPM. It's just another day at the freak-show, with the CNBS barkers entertaining the shills.

Unless...

It has been determined to make them the next black hole to fill with all of Wall Street's toxic paper. I kind of doubt it though, as it seems that is BoA's role to play.

Thu, 01/06/2011 - 17:06 | 853870 Arius
Arius's picture

"If this passes, Blythe is most likely toast."

With all due respect, i will believe it when i see it...

Thu, 01/06/2011 - 17:12 | 853899 Dr. Richard Head
Dr. Richard Head's picture

That IF is a big IF, if I do say so myself.  I anticipate either the the limit is voted down or implemented over the new three generations of serfs. 

Thu, 01/06/2011 - 17:35 | 853981 chubbar
chubbar's picture

JPM has had months to work out an end around. It's clear they found one otherwise Chilton would still be holding this back. My guess is they have offshored the shorts into holding companies that are outside the regulators jurisdiction. Expect it to pass with no ramifications on the shorts at all. Kabuki theater at its best.

Thu, 01/06/2011 - 18:59 | 854204 Francis Dollarhyde
Francis Dollarhyde's picture

This.

Fri, 01/07/2011 - 02:31 | 855256 Lord Koos
Lord Koos's picture

That's my take.

Thu, 01/06/2011 - 20:14 | 854474 Hephasteus
Hephasteus's picture

Savior bill. Exactly what you want. Defeated in vote.

NO SAVIOR FOR YOU. Haha do it yourself bitch.

Thu, 01/06/2011 - 17:07 | 853873 Bastiat
Bastiat's picture

Toast?  Get the butter!

Thu, 01/06/2011 - 17:09 | 853879 ciscokid
ciscokid's picture

JPM just bough 90% of the copper market, no one can

stop them,they are the law mates.

Thu, 01/06/2011 - 17:13 | 853895 Bastiat
Bastiat's picture

or: they own the law.

 

Thu, 01/06/2011 - 21:31 | 854686 Yits and the Yimrum
Yits and the Yimrum's picture

nothing to do with law; it is big f' ing pirate ship and their loot is stored at the BIS and other supranational gold depositories

pretty soon the fiction that these Pirates are subject to what we knew as laws will be a distant memory of some in-firmed baby boomer with a good weed operation in his basement

Thu, 01/06/2011 - 17:13 | 853902 Cdad
Cdad's picture

Yep...and just watch the copper spot price over the next month or so.  Currency tectonic shifts a comin'....affecting commodities.

Stud man USD is about to have his way with everything alive and moving...especially little miss Euro despite her delicate condition.  It's gonna be quite the show.

Thu, 01/06/2011 - 17:20 | 853929 Quinvarius
Quinvarius's picture

The only thing that saves the dollar is something else sucking worse.

Thu, 01/06/2011 - 17:23 | 853947 Cdad
Cdad's picture

Quin,

And something "sucking worse" would be the little tramp Miss Euro...carrying Ben Bernanke's love child as she heads towards the ash heap of history, baby...

Thu, 01/06/2011 - 17:21 | 853919 AR15AU
AR15AU's picture

JPM incorporating 10 new shell companies as we speak.

Maiden Lane XXVII - XXXVI

Pre-packaged bricks of dogshit they can sell back to the Fed should the balance sheets become impaired.

Thu, 01/06/2011 - 17:19 | 853922 OutLookingIn
OutLookingIn's picture

JPM and HSBC will just move their massive commercial shorts operations off-shore where the CFTC has no authority. Look to the LBMA and the LME to receive them with open arms and their hands out! Already happening as JPM has accumulated 90% of the global copper market on the LME.

Lets face it - this criminal activity is just too profitable for JPM and HSBC to just give it up, because the CFTC says so! Yah right.

Thu, 01/06/2011 - 17:20 | 853924 goldmiddelfinger
goldmiddelfinger's picture

It's gonna be a bad day at gold rock

 

 

Thu, 01/06/2011 - 17:28 | 853933 bingaling
bingaling's picture

Your optimism amazes me Tyler. There is no fucking way the CFTC does it's job even if this does pass . If it does pass it will be to burn anybody going against JP morgan nothing else. There is very likely a large buyer in Silver who is over the 10% limit would be my bet and whoever it was or is may be selling or have had a heads up looking at the past couple of days .

 

So I guess we are looking at a 10% correction in price before it starts moving up again

Thu, 01/06/2011 - 17:31 | 853971 sabra1
sabra1's picture

carlos slim?

Thu, 01/06/2011 - 17:42 | 853979 bingaling
bingaling's picture

Who knows but I know the CFTC has played the game w/ JPM for to long to burn them without burning themselves. 

Thing is gold is also taking an ass kicking but the 2 go hand and hand . There is going to be a great buying opportunity in the next week or 2

Thu, 01/06/2011 - 17:21 | 853935 unwashedmass
unwashedmass's picture

watch JPM hammer down the metals in the after markets....just to keep the peasants in line and let us all know exactly who runs this market....

and surprise, it isn't the CTFC...no way in hell....

so which two of the CTFC members are the ones on the take? who do you think?

and look, it didn't take them long, gold and silver are sliding.

Thu, 01/06/2011 - 17:23 | 853939 goldmiddelfinger
goldmiddelfinger's picture

You can say that again !

Thu, 01/06/2011 - 18:29 | 854122 Sean7k
Sean7k's picture

I love it when JP knocks down the price! I hate paying retail. Keep up the good work Blythe! People keep giving me this worthless paper and without your fine work, I have nothing to use it for...

Thu, 01/06/2011 - 17:20 | 853936 unwashedmass
unwashedmass's picture

watch JPM hammer down the metals in the after markets....just to keep the peasants in line and let us all know exactly who runs this market....

and surprise, it isn't the CTFC...no way in hell....

so which two of the CTFC members are the ones on the take? who do you think?

and look, it didn't take them long, gold and silver are sliding.

Thu, 01/06/2011 - 17:23 | 853937 unwashedmass
unwashedmass's picture

 

hell genssaler probably had to call JPM and get them to okay having a meeting and a vote.

Thu, 01/06/2011 - 17:28 | 853959 buzzsaw99
buzzsaw99's picture

JPM collects your tax money and writes your laws. If anything bad happens the taxpayer will suffer, not them.

Thu, 01/06/2011 - 17:44 | 854004 OutLookingIn
OutLookingIn's picture

 

 Yes. JP Morgan Chase is the Fed. They own the Fed. At least they are the biggest share holder, of the private for profit Federal Reserve Bank.

The Fed works for Wall Street - NOT Main Street. Once you believe this fact to be true, then the kool-aid does not taste the same anymore!

Don't worry. Be happy now!

Thu, 01/06/2011 - 18:21 | 854108 calltoaccount
calltoaccount's picture

The video all America needs to watch:

 "The Secret of Oz": how our money is created.  Informed people are astounded to learn the realities of the subject.      http://www.youtube.com/watch?v=U71-KsDArFM

Thu, 01/06/2011 - 17:31 | 853964 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Just divide up the position amongst fellow crooks, so no one entity holds more than 10%. It's not as though anything in this 'market' is audited or scrutinized anyway. It's a criminals playground.

Thu, 01/06/2011 - 18:25 | 854118 bugfixx
bugfixx's picture

If the JP Morgue actually had to divest any silver positions because of rule changes, they could easily swap them to other members of the bankster syndicate. I think that what the CFTC is really doing is pre-emptively protecting the large bank trading desks who are net short several years of world mine production from being trapped in a b@lls-in-a-vice short squeeze by a large player dominating the market on the long side.

Thu, 01/06/2011 - 17:33 | 853973 Rudeger
Rudeger's picture

I wouldn't get toooooo excited the big positions will migrate offshore!!!!

Thu, 01/06/2011 - 17:38 | 853983 deacon_blues
deacon_blues's picture

Ted Butler asked for 15% on the position limit to be "fair".  I do not think this will pass.  It's just a warning shot to show that the CFTC "means business", but it will be business as usual, only less so,

Thu, 01/06/2011 - 17:41 | 853996 JuicyTheAnimal
JuicyTheAnimal's picture

Care to respond to this?

http://www.businessinsider.com/crude-commodity-bullishness-pullback-2011-1

The Impact on JPMorgan

Short-term prices might depend on exactly what the limits are, who is affected, and how the CFTC implements the rules changes.

Here is one key paragraph: "The plan exempts so-called bona fide hedgers who use contracts to offset commercial risk. Swaps dealers, who sell derivatives, are free from limits as long as the transaction is made on behalf of an end-user, while facing caps for trades made to mitigate bets dealt to speculators."

I fail to see how that will necessarily curb JPMorgan's massive short position. (I am assuming JPMorgan is hedged). However, let's assume JPMorgan is not hedged.

How will the CFTC phase in the rules? If they do so by limiting the buying of silver futures until position limits are reached (the method used to end the Hunt cornering attempt) , then silver will likely get hammered short-term.

Thus, I do not agree with zero-hedge who writes "And if indeed this news was the catalyst for today's precious metal and other commodities sell off, it is woefully misinterpreted, as the only major institutional parties impacted will be those who hold outsized short positions in the precious metals space."

It's not that Zero-Hedge is necessarily wrong; it's just that he is not necessarily right.

However, if I had to bet one way or another, I would bet that whatever method the CFTC comes up with will not adversely impact JPMorgan in any significant way.

Thus, if anyone is impacted in the short-term, I suspect it will be silver longs, even though long-term the price of silver will get to wherever it is headed.

My friend "HB" agrees. He just pinged me with this comment. "The GATA crowd should be livid when it realizes that position limits may - gasp - depress the silver price."

Read more: http://www.businessinsider.com/crude-commodity-bullishness-pullback-2011-1#ixzz1AIHLHTda

Thu, 01/06/2011 - 17:49 | 854014 OutLookingIn
OutLookingIn's picture

 

 Agree. This will be the major dog and pony show so far, with all the trimmings of much smoke and a houseful of mirrors!

Gotta keep the unwashed masses happy now - don't we?

Thu, 01/06/2011 - 18:22 | 854104 Bay of Pigs
Bay of Pigs's picture

That's straight Mish, who has missed the silver bull for ten years now.

Thu, 01/06/2011 - 18:33 | 854137 Sean7k
Sean7k's picture

Ultimately, the inability to service contracts will be all that matters. Paper is already diverging from physical. 

Thu, 01/06/2011 - 17:49 | 854015 johnnymustardseed
johnnymustardseed's picture

Own physical and let them play their rigged games, it will all crash someday and you will be able to feed your family and they will  have nothing

Thu, 01/06/2011 - 17:58 | 854041 goldmiddelfinger
goldmiddelfinger's picture

Margin limits go up on both sides mustard man

Fri, 01/07/2011 - 00:49 | 855082 tmosley
tmosley's picture

Margin limits don't matter when you have an unlimted line of free credit with the Fed.

Thu, 01/06/2011 - 18:22 | 854021 Djirk
Djirk's picture

If they really wanted to make a difference they would take it up to 100% and ban speculators from commodities. Look at the impacts on food prices in the non wealthy countries.

So let me understand....western banks create money out of thin air, traders/banks borrow it, make billions and people in Africa/Asia starve? It's cool.

For you really paranoid conspiracy types; if derivs are unregulated how do you know the liabilities really existed and the goverments didn't just siphon billions in tax payer money to the banksters? I don't believe that, just fueling the imagination.

 

 

 

Thu, 01/06/2011 - 17:54 | 854023 Baguita
Baguita's picture

edit

Thu, 01/06/2011 - 17:53 | 854028 Baguita
Baguita's picture

What if it is the case that it is China, and not JP Morgan that is the biggest short position around?

http://seekingalpha.com/article/243617-is-china-behind-the-big-silver-short

If so, any legislation could be both for real and aimed to protect US concerns, rather than otherwise?

Thu, 01/06/2011 - 18:08 | 854073 OutLookingIn
OutLookingIn's picture

 

 This will tell you who is behind the curtain;

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

Thu, 01/06/2011 - 17:59 | 854046 RobotTrader
RobotTrader's picture

I will assure you that anything new proposed by the CFTC will have no adverse impact on JP Morgue or Blythe Masters whatsoever.

If anything, it will further decimate the PM spec longs.

I mean, really, use common sense.

Why or how would the most corrupt CFTC do anything to jeopardize the bluest of blue blood entities like JPM?

Thu, 01/06/2011 - 18:07 | 854070 Bastiat
Bastiat's picture

I sadly but totally, agree.

Thu, 01/06/2011 - 18:09 | 854077 goldmiddelfinger
goldmiddelfinger's picture

So you see this as bullish for gold.

Thu, 01/06/2011 - 18:24 | 854114 Djirk
Djirk's picture

With another Chicago boy as chief of staff in the white house....nothing significant will change. That is change you can believe in.

Thu, 01/06/2011 - 18:39 | 854157 Kina
Kina's picture

Why or how would the most corrupt CFTC do anything to jeopardize the bluest of blue blood entities like JPM?

 

Indeed, this is true. the CFTC is in fact a front for the banks to improve the effiency of their corrupting of markets.

The only way the corrupt members of the CFTC would ever do anything to hurt Masters or JPM et al is to protect themselves from angry mobs, guillotines, ropes and such. Rats will always turn to bite you in self preservation.

So if the SHTF at any time expect to see some CFTC bodies laying around at rubbish dumps. Dead men tell no tales.

 

Thu, 01/06/2011 - 18:01 | 854048 6 String
6 String's picture

The manipulation isn’t over.  The scumbags in charge of the entire country get extremely nervous every time silver hits $30 per oz.  And it’s the second year in a row where the same shit-down, fuck-heads that are destroying everything U.S.A. have woken to the New Year with a fresh outlook now that their bank bonuses have finally gotten deposited, overseas, and are ready for yet another attempt at a smack down on silver.

But, I ask, does it really fucking matter? Or the CFTC? No. Of course, none of this shit will matter—supply and demand will, at the end of the day.

The Ted Butler theory that China is behind the all-out manipulation might be spot on, as every other conspiracy theory has recently come to fruition...and this one probably will, too. With China’s massive trace silver input into all things growing solar and all things manufactured; it makes sense to want to keep your raw material costs as low as possible. Low costs, higher margins = higher profits.

On the other hand, if they were smart, they should have simply hedged the price of silver by going long, very long the precious metal: thereby eliminating any worries of a run-up costing them money at the margins, but more importantly by protecting them from silver inventory becoming extinct.

Clearly, this would triumph over any and all other worries such as raw material costs. I cannot think of a single worse problem to have if a manufacturer were to completely run out of a critical raw material that’s not replaceable. When that happens, it’s truly over…so,  in a nutshell, shorting is a stupid trade if it’s China because ultimately price suppression will only make demand outstrip supply even faster, the cheaper silver is the faster she goes…

Which takes me back to Blythe Masters, the head of commodity trading at JP Morgan Chase. If Butler is right or even if he isn’t, JP Morgan is still a bunch of assholes. It’s amazing how utterly in the dark America is—on this and everything else. That’s why silver will have its day…lollapalooza parabolic ally, but it will be take longer than one thinks, less than one knows, sooner than one calculates, and surprise us all—even that whore Blythe.

In the end though, we're doomed anyway.

Thu, 01/06/2011 - 18:06 | 854064 Bastiat
Bastiat's picture

Physical is the what will force price discovery, you're right. 

Thu, 01/06/2011 - 18:39 | 854150 JLee2027
JLee2027's picture

+100 trillion

Thu, 01/06/2011 - 20:05 | 854433 legerde
legerde's picture

"If they were smart..."   They are smart.  I read to much to remember where I read stuff, but I remember reading something along the lines that the US did not repay silver loans to China.

China then decided to reclaim lost physical silver by driving the price down with naked shorts that they never intend to honor.  Just keep rolling them and at the end, when there is no more silver to be had, default on the short obligation.   They want the price to be low while they continue to accumulate and run the COMEX dry.

Thu, 01/06/2011 - 18:02 | 854056 Bastiat
Bastiat's picture

JP Morgue's Daley now Obummer's Chief of Staff.  Right, the CFTC is going to come down Blythe!  More like the CFTC will do everything possible to protect the blythemeister and its morgue.

Thu, 01/06/2011 - 18:39 | 854154 JLee2027
JLee2027's picture

Yup. They've gone Full Crook in Washington.

Thu, 01/06/2011 - 20:52 | 854562 Bastiat
Bastiat's picture

A Chicago Daley who ran the lobbying for the JPMorgue?  Jeezus did he clerk for Satan too?

Fri, 01/07/2011 - 01:30 | 855159 JLee2027
JLee2027's picture

Lol.

Full Crook baby. It's the only way they go. 

Thu, 01/06/2011 - 18:07 | 854066 frippy
frippy's picture

Blythe?

Eddie would go.

Thu, 01/06/2011 - 18:08 | 854071 johnnymustardseed
johnnymustardseed's picture

In the end though, we're doomed anyway.

EXACTLY!! Owning silver and gold will not be about profit it will be about survival.

Thu, 01/06/2011 - 18:11 | 854084 goldmiddelfinger
goldmiddelfinger's picture

Dude, when the world looks like the movie "the Road" do you think you'll get change for your $20 liberty after a purchase?

Thu, 01/06/2011 - 18:19 | 854099 johnnymustardseed
johnnymustardseed's picture

No, but my mercury dime might buy a loaf of bread, my $20 liberty might pay for three dead cows in the freezer

Thu, 01/06/2011 - 19:05 | 854221 godgunsandgold
godgunsandgold's picture

GMF-

PM's are for after, not during.....

Fri, 01/07/2011 - 11:04 | 856029 damnitalready
damnitalready's picture

Exactly... Food and water supplies and solar generators for during, PM's to ensure I still have my money afterwards... 

Thu, 01/06/2011 - 18:33 | 854136 Kina
Kina's picture

Can I shove her in the toaster?

 

Please.

Thu, 01/06/2011 - 18:38 | 854148 Woppopotamus
Woppopotamus's picture

Here's a tidbit some a-hole over at yahoo is spouting out. Says Blythe is going to be seeing a mutiny from ex-morgueites in silver after an engineered takedown in gold starting tomorrow. I'm sure its junk but maybe some will want to read.

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_J/threadvie...

Thu, 01/06/2011 - 20:11 | 854366 TheGoodDoctor
TheGoodDoctor's picture

I read all this. Seems plausible. I wonder if that means a dollar rally will help this sell off in gold and thusly silver? Interesting.

PS Or taking down miners.

Thu, 01/06/2011 - 18:39 | 854160 bankrupt JPM bu...
bankrupt JPM buy silver's picture

who's been buying this 10% silver selloff, not me!  I didnt order an insane amount of physical over the last 2 days, nope.  I mean, I havent run out of room to put it, not me. LOL 

As I have posted on the Watch Tower Blog: After the PH bombing of the pacific fleet by the Japs, they knew they had been duped and really hit nothing the fleet had been moved 2 weeks prior.  After realizing the fate of Japan was now next to the vegetable, squash, they resorted to suicide aircraft landings, aka, kamikaze.  WTF does this have to do with silver?  Blyth is now going Kamikaze, the next few days should be epic and tantalizing as there is no other way for silver to go but-UP.  And Bingo-was-his-name-o.

 

Eat my shit Blyth, call me if you need a Cleveland Steamer.

Thu, 01/06/2011 - 19:44 | 854352 Dr. Sandi
Dr. Sandi's picture

Just crossing the wires now. If this passes, Blythe is most likely toast.

Toast? Yeah, the toast of JP Morgan.

JP: Hey, Blythe, can you deal with these new CFTC rules?

BM: Sure, JP. After all, I DID write them, didn't I.

JP: Do you think the 10% thingy will be a problem.

BM: Not really. I've already gotten the new mailbox for JP Morgan Bermuda. There's a 2-year agreement for the attorney in Belize to become JP Morgan Belize. Believe me, we wouldn't have pulled the trigger on the new law if we weren't ready to deal.

JP: Sounds good. Now come here and give daddy a pony ride.

Thu, 01/06/2011 - 21:06 | 854595 Bastiat
Bastiat's picture

LOL!  Great stuff!

Thu, 01/06/2011 - 19:56 | 854400 f16hoser
f16hoser's picture

No she isn't. They can pass all the rules they want. In the end, nothing gets enforced. Position Limits don't mean shit to JPM. In fact, I'll bet you you they double-down......

Thu, 01/06/2011 - 20:11 | 854458 ciscokid
ciscokid's picture

Asian bash down on gold and silver,it's started early,tomorrow will be a real waterfall on gold and silver.Bring it on bitches.

Thu, 01/06/2011 - 21:05 | 854578 Bastiat
Bastiat's picture

They're fighting for their lives and need to paint a picture that the FRN is strong enough to allow the debt limit to be raised.  But physical buying will make it a real fight.  There's more demand out there then there is gold to fill it as the fiat regime daily loses credibility.   

Fri, 01/07/2011 - 00:22 | 855051 BankRiot
BankRiot's picture

What happens if you refuse the cash settlement and keep demanding the physical?  I've head they give you the runaround....

Fri, 01/07/2011 - 01:29 | 855160 JLee2027
JLee2027's picture

Go public.

Fri, 01/07/2011 - 00:22 | 855052 BankRiot
BankRiot's picture

What happens if you refuse the cash settlement and keep demanding the physical?  I've heard they give you the runaround....

Sat, 01/08/2011 - 20:20 | 860368 Hook Line and S...
Hook Line and Sphincter's picture

'reach around', not 'run around' is what you want to get with that nice premium attached. Then, run out and buy PM at the coin shop.

Fri, 01/07/2011 - 03:28 | 855312 2 cents
2 cents's picture

Gee, isn't it nice that Bama has a new JP Morgan Chief of Staff to explain policy to him?

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