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Bank Of America Is Just The Start Of Paulson's Problems: Behold.... Citigroup
With Bank of America getting taken to the woodshed, we can only hope that Paulson managed to sell all of his stock in the name, or otherwise just like Bruce Berkowitz is organizing a call to defend Bank of America on Wednesday, Bank of America would have to organize a call today to protect JP from his LPs. Alas, Bank of America is just the start of Paulson's problems. For a just as big problem we shift our attention to the next worst bank in America, Citigroup, which as the excerpt below demonstrates, was a bragging point in the firm's January 2011 letter. Alas, there is little to brag about these days. Which is why we wish to caution investors to be vary careful with liquidation-like selloffs in gold. Should D-Day strike at Paulson, the firm's multi-billion GLD "gold share class" will likely have to be sold very fast to preserve liquidity. When that happens we may see a 20-30% correction in gold in one day. This is just a theoretical warning, and we hope to have some sense of when, if at all, it would take place. But just something to keep in the backs of your heads...
From Paulson January 2011:
Uh, ok...
Here is why Paulson is now likely down 30% for the year and the margin calls may soon commence.
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Finally, the Black Swan wakes up from its hibernation.
Do yourself a favor. Buy land: http://sotcksdairyroadfarm.blogspot.com/
Black swan my ass. I've been waiting for this shit to happen for four years. BAC the most crooked and inept bunch of pricks on the planet and if not- swallowing Countrywide sealed the deal. Fuck BAC.
More likely Ken had to choose between swallowing Hank and Ben's shotgun or Countrywide.
didn't they get MER crammed into their belly too?
Ken had been after MER for years. And they had dumped $4 bil into CFC already, bought the rest thinking they were covering their losses, uh, guess not.
Now MER is probably the only asset they could sell. They are just one big pile of bad debt. They'll be nationalized and MER split off. More shit for taxpayers to eat.
+1,
But to credit the above, 'Wake up' was writ.
It's not a Black Swan to Zerohedge readers - or anyone with common sense.
ZH has by now become, it seems, an hourly exercise in fear mongering. Gone are the days of high quality articles. Now citing daily mail, foolish reports by S&P and the like have replaced them. Sad.
Yes you're right everything's just fine, no reason to worry. The Titanic is the greatest ship in the world, surely it can avoid that large white thing coming right at us. Why to sound the alarm would be fear mongering and wake up all the guests below deck. That would really incovenience them.
yes, I'm sure that if ZH looked just a bit harder it could find all sorts of positive economic stories to post. /sarc off.
I found a positive story in under 5 minutes:
http://blog.sustainablog.org/urban-farming-detroit/
@fx - It IS pretty bleak out there, but it's not 100% bleak...no market is ever so. ZH is good readin', but also pretty much gloom and doom... That's why you gotta read a variety of sources
BOA and Citibank? LOL. FU both.
BEHOLD AMERICA
Is there a chance that Citi could fall?
If so how would this affect its banks in other regions in the world?
Citi is a .gov bank at this point
Which means nothing.
Fuck All the Goldman Sachs cocksuckers.
They can kill us, but they can't eat us.
Well, maybe they can.
But who gives a shit.
The secret?
Tune on, turn on, and drop out.
Let's enjoy the Ben Bernanke song:
http://www.geraldcelente.proboards.com/index.cgi?board=music&action=display&thread=320
Fuck all the cocksuckers in their Ivy-League asses.
... they can't eat us. Well, maybe they can.
Heh heh ... Be the shit that hits the fan ...
Hopefully not ... keep yer heads down!
Wow, jealous much
You mean we might get another buying opportunity while a bank fails? It must be my birthday!
"To see the role of the monetary system in this let us take a look at how this currently works: Basically, in the modern world there are places called ‘banks” that have computers in which many people have so-called “accounts”. In the accounts of these computers there are numbers, which are measures (in the US given as dollars) of how much “money” you own. A large proportion of humanity in fact does not have any such “account”, whereas some people may have 10.000 ($) associated with it. Others may have 10.000.000 or even 10.000.000.000 ($) associated with their names in these bank computers. Moreover, for a large number of people these numbers are negative because the banks have “lended” “money” to them. Thus there are huge differences in these numbers for different people despite the fact that people work approximately the same amount of time everywhere. Sometimes the numbers may be related to a service done by someone to the planet, but more often than not it is the other way around. Those that cause the most damage to our planet in fact often have the highest numbers in these bank computers. Regardless, the point to realize is that the numbers in these bank computers more than anything else defines a power structure, where those with high numbers dominate those with low or negative numbers. Money has no real existence, but the legal definitions of a society maintains a system of dominance based on these computer numbers."
carl calleman
http://www.silverrevolucion.com/story.php?title=the-beginning-of-the-fou...
Is that your work? Well said.
it was written by carl calleman. a great read i found here http://www.calleman.com/content/articles/Beginning_4thNight_9thWave.htm
unlike most out there, Calleman analyzed the Mayan calendar end date as taking place fall 2011, not 2012. I think he is correct.
me too.. using the calendar you could have predicted the 2008 crash, and Calleman did predict it.. using the calendar you can also expect a another big crash to occur in August. particularly the 18th to 26th... on the down wave of Night 5 http://www.4-ahau.com/ressources/Ninth_Wave_Calendar_4-AHAU.jpg
http://www.silverrevolucion.com/index.php?category=Mayan%20Calendar
July 21st Dow Jones:
12,724
August 8th Dow Jones:
11,120
Dow has lost 1,600 points in two weeks (1.6 Trillion is US household weatlh evaporated). Talk about taking the elevator down!
is that paper gold tyler or physical?
"by gorillaonyourback
on Mon, 08/08/2011 - 12:11#1537541
is that paper gold tyler or physical?"
Just my guess, but it's probably paper. COMEX prices seem to be somewhat disassociated with the real world...
Gold majors breaking out
Eldorado +7.55%
Agnico-eagle +5.35%
Barrick +5.59%
Yeah. Interesting, wot? I just was doing a nooner price check and and in my surprise and haste, skipped over your post.
Your scoop. Could be a change in trend for Gold Stox (finally) developing? Gold does need a bit of a rest, though. Interesting cross-current.
There is simply too much liquidity in this world. I bet there is some investors just doing some quick PE checks and buying.
This is flight to safety buying.
ELD +8.5%
AEM +6%
ABX +6%
May come to an agreement on price with China. Sure they would love the gold.
Could be a real "swan dive" in gold and then right back up and through the roof (again). Topsey_Turvey!
All the lemmings will strew forth and proclaim the gold bubble has popped...
Passive aggressive, bitchezzzzz!!!
Gold up 5%+ priced in Rubles
Gold on sale for 20 to 30% off nominal prices, that would be the day!
Could be a real "swan dive" in gold and then right back up and through the roof (again). Topsy_Turvy!
Goldman down to $118.6, Ford down to $10, BAC under $7, Citi down to $30 which is about $3 before the reverse split, GM down, AIG down, all those lovely government bailouts look for more buckets again. What a sham!
Looks like Paolo Pellegrini was the real brains of the operation.
Try to find ANY physical gold if the price crashes 20-30%.
If Paulson needed to sell all the gold in one hit wonder how he would go about it. Dumping it on the market will crash his price. If it is physical better he seek a buyer for the lot maybe.
OT ... or not! Anyone watching gold stox? ... some up 5, 6 and even 7%. Veeeeery interesting.
J.P. Morgan just uprgraded spot Gold to $2500.00
Everyday with the upgrades
How does that game go again...Rock, Paper, Sissors, GOLD? No Gold? Why not?
Who thinks there won't be takers for all that gold which Paulson might have to exchange for worrthless fiat paper currency ?
There will be plenty of takers.
Time for a little music rewind. Jump you fuckers. http://youtu.be/9TYezSrzUUs
So when does this wonderful gold sale take place? I want my place in that line!
EUR/CHF just fell.outta.bed!
so when is silver's turn to shine?
Paulson won't sell his gold, its his only "flagship" left! Hard to make money if you can't CHOSE your shorts eh, suckmouth?! Folks, get ready for the next LEG DOWN, followed by a "relief rally" of some magnitude, (Benjie is getting ready shortly), followed by the NEXT REAL LEG DOWN!
Enjoy!
he is probably hedged in the position. interesting that the reverse split in C may have been done to accomodate the shorts, because investors (technically anyway) cannot short stock on margin, and you cannot margin a stock once it falls below $5. (the official bullshit reason for the rev split was that the higher share price would make it more attractive to fund managers) and his gold position operates as a hedge as well, gold up, citi down.
i'm more interested in whats going on at goldman, (which managed to wrangle FDIC protection after 2008, though they have not one retail customer - should they try to tap that line of equity one or two Congressmen may have something to say - those nasty T party guys and gals)
and Shiela Barr as you point out in another post basically had TARP forced upon her, and she might have something to say this time around, although vicitims of financial rape are often reluctant to speak out. out of fear of course.
paulson and bernanke forced the Merrill deal on BAC, a criminal activity, and now BAC shareholders get the penultimate indignity. is there anybody out there who doesn't believe in the T Party?
Unfortunately, ShitiBank happens to hold the Contract as the Official Purchase and Travel Card Servicer for DoD and most of the rest of the US Gov't until at least 2012 (with possible extentions).
They'll get a fat bailout, instead of being kicked into the dumpster of History's failures.
I don't think that Bank of America will be so lucky.
No problem.
Citi will just fix this with another reverse split.
Meanwhile at the Perth Mint..
Mint is humming as investors rush to the safe haven of goldhttp://www.theaustralian.com.au/business/markets/mint-is-humming-as-inve...
They never should have reverse split Citi. At 4-5, whats the point in shorting it(if you are even allowed), but at 50, much different story.
From 4 to 0,big deal.
from 50 to 0, now we're talking.
666 Citi and the Johnny Deutch boys, funny how that works. http://www.myspace.com/urbandancesquadmusic/music/songs/the-devil-57466543
Warren Buffy's Company just got a -downgrade
Oh, The Humanity !!!!!!!!!!!!!!!!!! LOL
Makes you wonder how much EUROPEAN esposure they have......oh oh....could be a prolem for the next round of bonuses...
Wasn't Wikileaks supposed to release files on BofA? Whatever happened other than broken condoms?
Well, I've been calling for a $50 up day in AU, and here we are, up $52.90. But it's tracking the 20% debt-ceiling increase, giving it a target of $1950 withing 18 months, probably much, much sooner. Paulson's GLD is going to offset some of his other losses, until it doesn't.
now under $30...next stop? Who cares...
A few billion $ sell order in GLD sounds big, but the daily trading volume on the LBMA is 22 million oz a day equal to ~ 37 billion $ (last daily LBMA Volume data from april '11, gold @1700.) There is the Comex trading too. Moreover, with growing turmoil PHYSICAL demand is very likely growing.
Not too much to worry about.
So wait a minute. If Paulson's position in GLD is something like $4.5 billion, that would make liquidating his entire position all at once equivalent to about 1.5 days worth of GLD volume, right?
I don't see a 20% move from that.
Oops, gunther my post crossed with yours. Looks like you concur.
yes
Paulson is dead toast. The big down moves are in all of his holdings. Seems he's forced to liquidate a part of his sizable holdings.
the firm's multi-billion GLD "gold share class" will likely have to be sold very fast to preserve liquidity
thx for the heads-up, t.d.
Behold!
My Jan. 2012 $30 puts on C soaring today!
Yeeehawww!
Why the hell did he old onto this garbage. Was he promised TBTF money or told it wluld be endlessly backstopped and ramped? We all saw this coming miles away
Mommy, may I max out my BAC card on PMs, cut it up, and give them the finger now?
Hey Paulson!
"GET SOME!"
Regardless of what happens with any big whigs like Paulson or others, any sell off in Gold will be short lived in this environment. 2-3 years and Gold will easily be past $2,000 an oz. Silver will be up above $100 most likely. Don't let distractions like a big Hedge Fund manager having to sell his gold scare you out of your positions.
http://mrtindle.hubpages.com/hub/Gold-and-Silver-Will-Go-Higher
Black Swan with diarrhea. Explosive diarrhea and Exorcist-like projectile vomiting. (Sorry if I ruined your lunch; it is kind of a vivid image).
Black Swan with diarrhea. Explosive diarrhea and Exorcist-like projectile vomiting. (Sorry if I ruined your lunch; it is kind of a vivid image).
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