Goldman Causes Selloff In Commodities: Closes Top 5 Trade Of 2011: Long Crude, Copper, Cotton And Platinum (CCCP)

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Mon, 04/11/2011 - 11:30 | 1157870 TruthInSunshine
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Commodities are efficiently priced based on supply/demand equilbrium.



Mon, 04/11/2011 - 11:34 | 1157887 Clueless Economist
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Mon, 04/11/2011 - 11:42 | 1157900 TruthInSunshine
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Paul Krugman, I had the privilege of reading your analysis that essentially stated that The Bernank could print and drop more money to offset ridiculously high and speculative-fever level commodity prices.

It was in the same piece where you wrote that the U.S. could print the amount of money necessary to pay its national debt off.

Thanks for your Keynesiastic brilliance, Paul. You make economics fun and exciting.

Mon, 04/11/2011 - 12:10 | 1157981 SRSrocco
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The day after Zero Hedge posts that Bill Gross of PIMCO is short US DEBT and has $73 billion in cash, the Goldman Sack announces they are going to end the CCCP commodity Trade.

Makes perfect sense if you think about it.  Bill Gross thinks inflation is getting ready to head towards the moon, so Blankfind believes its time to UNLOAD real wealth.

You can't make this stuff's hollywood material right out of Universal Studios.



Mon, 04/11/2011 - 12:14 | 1158014 Weisbrot
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information, gamesmanship, disinformation, and headfakes. looks like the real fun ia about to begin. get the barf bags ready.

Mon, 04/11/2011 - 12:48 | 1158123 66Sexy
66Sexy's picture

**snicker - nudge nudge **


like fundamentals matter....



Mon, 04/11/2011 - 12:59 | 1158160 MachoMan
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The whole charade continues on ambiguity...

Mon, 04/11/2011 - 12:18 | 1158018 Careless Whisper
Careless Whisper's picture

GoldmanSachs is a bank, dammit. They are not a hedge fund. They are not a chinese insurance company or a chinese car company. They make loans to small businesses. They have tellers and atm machines. They don't trade for their own account.


Mon, 04/11/2011 - 12:44 | 1158110 pgarner
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Mon, 04/11/2011 - 14:47 | 1158500 LawsofPhysics
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That in a nutshell is the whole problem. Banks need to return to being ONLY banks and deal with the risk they create or take on.

Mon, 04/11/2011 - 12:41 | 1158087 Thomas
Thomas's picture

nascent signs of oil demand destruction in the US? Sounds like tankage to me.

Mon, 04/11/2011 - 18:33 | 1159415 55mph
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Blankfein is the buyer.  proprietary trading is not dead.

Mon, 04/11/2011 - 11:48 | 1157933 jus_lite_reading
jus_lite_reading's picture

Doing Gods work inflating prices of things we need

Mon, 04/11/2011 - 12:52 | 1158143 Problem Is
Problem Is's picture

Then how come "God" sounds just like Morey Amsterdam??

Mon, 04/11/2011 - 13:16 | 1158234 avonaltendorf
avonaltendorf's picture

+10 laughed out loud

Mon, 04/11/2011 - 14:04 | 1158390 Jan Modaal
Jan Modaal's picture

And just like God he can create value out of nothing

Mon, 04/11/2011 - 20:27 | 1159787 rocker
rocker's picture

GS created the financial crisis, didn't they?  Look at all the value they got for that. Downside $$$ Upside $$$

                                                                                                                   Moral Hazard  $$$$$$$$$$$$$$$$$ 

Mon, 04/11/2011 - 11:59 | 1157967 Id fight Gandhi
Id fight Gandhi's picture

Supply demand? Lol.... Speculation and cheap money. Watch them try and short these only to get squeezed out and drive it to nosebleed levels

Mon, 04/11/2011 - 11:34 | 1157880 Pepe
Pepe's picture

The great puppeteer

Mon, 04/11/2011 - 11:35 | 1157881 The Count
The Count's picture

Since about 5 years I am using all 'recommendations' by the big investment banks as asswipe. 

Mon, 04/11/2011 - 12:21 | 1158035 Weisbrot
Weisbrot's picture

be careful, some time soon they may be accurate.

Mon, 04/11/2011 - 13:26 | 1158280 The Count
The Count's picture

Sure, its like Hitler did some things right too.

Mon, 04/11/2011 - 11:35 | 1157889 NOTW777
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right. and they announced it publicly. who believes GS - anyone

obama is also interested in cutting the deficit

Mon, 04/11/2011 - 12:22 | 1158040 Weisbrot
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if GS publishes BS then how long until they follow the BS of 2008 in to the history books?

Mon, 04/11/2011 - 11:44 | 1157924 dracos_ghost
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How the hell do you close out "potential gains". Wouldn't they be actual?

our Commodity Research team believes that in the near term the risk/reward no longer favours being long the basket

In other words, "Our algos are at a level that they are throwing numeric exceptions(Infinity) due to all the money we made on this carry trade and we must now sell at the peak to all the suckers in mismanaged 401(k)s to book our profits. Once the numbers get back to better levels and our algos can handle it, we will return. All Your Base Are Belong To Us" -- Leroy Jenkins

Mon, 04/11/2011 - 11:45 | 1157926 LibertyIn2010
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Maybe just a coincidence, but after viewing this article I went over to The Burning Platform and found this quote just posted -

“Not a word from their mouth can be trusted; their heart is filled with destruction. Their throat is an open grave, and with their tongue they speak deceit. Show their guilt, O Lord. Let their scheming be their downfall. Banish them for their crimes and transgressions, for they have rebelled against you. But let all who take refuge in you be glad.”

Psalm 5:9-11

Mon, 04/11/2011 - 11:51 | 1157941 SheepDog-One
SheepDog-One's picture

So in reality GS wanted a dip to buy.

Mon, 04/11/2011 - 13:17 | 1158246 mick_richfield
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Wow!  Did the author of that piece know these guys?

Mon, 04/11/2011 - 13:48 | 1158342 r101958
r101958's picture

They did it because they are more concerned, at this point, with control of the masses than with excessive profits.

Mon, 04/11/2011 - 13:54 | 1158352 Bananamerican
Bananamerican's picture

opened a Gideon to a random page after a tryst in a hotel once and it said "She openeth her mouth with wisdom and in her tongue is the law of kindness"

I love that damn book

Mon, 04/11/2011 - 11:46 | 1157929 defn8Dog
defn8Dog's picture

How do they do it at GS? Poetry in motion!  Check out today's GS sellside "conviction buy" on KKR.  Someone got a good price.

Mon, 04/11/2011 - 11:49 | 1157942 vote_libertaria...
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In other words.  We think the dollar will sink further and these items will go higher.  So we want to buy them as cheap as possible so we are telling everybody to sell.

Mon, 04/11/2011 - 11:53 | 1157950 unky
unky's picture

but copper is supposely be owned by jp morgan up to 90%

Mon, 04/11/2011 - 12:01 | 1157969 chumbawamba
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We have a winner.  You prize is a 30 year US Treasury Bond!  Congrats.

The base metals, particularly copper and nickel, have a long way to go in this bull run.

Just wait until most folks get "priced out" of silver and start eyeing copper and nickel as stores of wealth and eventually, once again, money.

I am Chumbawamba.

Mon, 04/11/2011 - 12:20 | 1158016 Mark McGoldrick
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Financial advice from a deadbeat who can't pay his own bills. 


Chumbawamba = The Lenny Dykstra of ZeroHedge.  

Mon, 04/11/2011 - 12:22 | 1158031 topcallingtroll
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Mon, 04/11/2011 - 12:29 | 1158057 chumbawamba
chumbawamba's picture

Guess what I bought with all that credit that the bankers were all too happy to throw at me when they thought the ponzi scheme would go on forever?  Silver.

Guess what I'm going to buy when the dollar dies?  You.

I will stuff your gaping vagina hole with bars of silver to disinfect it.

I am Chumbawamba.

Mon, 04/11/2011 - 12:58 | 1158144 Mark McGoldrick
Mark McGoldrick's picture


Maxed out the credit cards with silver a few years ago? Yeah, right.  How convenient! 

The mathematical symbol relating liars to deadbeats is an "=" sign.

Your lack of financial acumen is more than replenished with a penchant for gross vulgarity, which I find common among the wing-nut libertarian goons around here.  



Mon, 04/11/2011 - 13:03 | 1158197 chumbawamba
chumbawamba's picture

Isn't a deadbeat someone who is a drag on society?

What do you call someone who's only function is to harangue productive members of society?  And to think you get compensation for that.  Where can I sign up?  Does Cass need any recruits for his loser brigades?

Don't call me a deadbeat, please call me a beatdead, because that's what I'm going to be doing to guys like you when you come looking for a handout from guys like me who have silver.

I am Chumbawamba.

Mon, 04/11/2011 - 13:43 | 1158325 earnyermoney
earnyermoney's picture

When was your start date for the Center for American Progress?

Mon, 04/11/2011 - 12:49 | 1158120 Another Texan
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Lenny Dykstra - awesome!

Mon, 04/11/2011 - 13:08 | 1158213 chumbawamba
chumbawamba's picture

I admit I had to Google that one because I'm not a baseball fag.  After reading a little bit, I still don't get the reference, because I'm not a baseball fag.

Who the fuck likes baseball?  Fags.

I do, however, like maxing out my credit cards by buying silver with them.

I am Chumbawamba.

Mon, 04/11/2011 - 20:06 | 1159729 SamuelMaverick
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Yeah, banks, insurance companies, and auto manufacturers union thugs can fucking default on everything, get billions in bailouts, wipe out the shareholders and bondholders life savings. Whoever has a problem with Chumba can bend over and kiss their own ass.  Jerks.

Mon, 04/11/2011 - 12:56 | 1158150 SilverRhino
SilverRhino's picture

Strategic default bitch ... what's good for the corporation is good for the citizen.   After all, legally they are the same.

Chumba's a dick but he's no fool.

Mon, 04/11/2011 - 11:50 | 1157946 augie
augie's picture

So Gross and Goldman both have inside info that QE3 isn't going to happen. Great. I just got long silver at 39.80 and now am going to get smoked like i did trying to short the /es

My frustration is not with the situation, its more with my own nievety that I could be "ahead" of the market. Hah boy was i wrong.

Mon, 04/11/2011 - 12:09 | 1157999 topcallingtroll
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The end of qe2 without an immediate qe3 has been well telegraphed in advance.

Mon, 04/11/2011 - 12:21 | 1158034 Muir
Muir's picture

Shhhh.... no one want's to listen to this.

"Ahhh, just explain to me how this is bullish for silver"

Mon, 04/11/2011 - 13:42 | 1158313 earnyermoney
earnyermoney's picture

I went all cash from commodities with this scenario in mind. I think the odds of a pause between QE2 and QE3 are pretty high. I think everything gets hammered in that scenario to form a lower base for the next round of QE.

Mon, 04/11/2011 - 12:11 | 1158000 The Profit Prophet
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Nice try Shill.....PMs are golden (pardon the pun).

No worries.....Hedgers will survive the upcoming JP/Goldman bear raid on PMs......there's milllions of us just waiting to BTFD!!!!

T.E.I.N. everyone!

Do NOT follow this link or you will be banned from the site!