This page has been archived and commenting is disabled.

Here Is Who Is Getting Creamed On Today's Hewlett Packard Bloodbath... And Why It Just Is Not Paulson's Year

Tyler Durden's picture





 

A quick look at the top 40 holders of HPQ stock, which has tumbled 20% today (as ZH predicted yesterday), shows that i) it will be a very unpleasant weekend for a lot of people but ii) none more so than Paulson & Co, which was already down 33% or something YTD in Advantage Plus and which is eating another $141 million loss today alone. If there was any doubt that the once legendary hedge fund has become the punching bag of 2011, this should eliminate it all. Which is not to say we feel bad for JP: with billions in his checking account, we doubt he will lose much sleep over what is increasingly appearing like an inevitable unwind of the fund. We do feel bad however for holders of paper gold, as the day of the gold share class unwind draws nearer by the day. And with 31.5 million GLD shares for a total of $5.5 billion, the unwind will be, for lack of a better word, epic. The only question is when.

PS. Adding insult to injury, Moody's just revised its outlook on HPW to negative.

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 08/19/2011 - 12:59 | Link to Comment Mongo
Mongo's picture

Let them have it!

Fri, 08/19/2011 - 13:07 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

Check out the latest from the Capital Research Institute "Debt Crisis? Or Currency Crisis?":

http://www.capitalresearchinstitute.org

"The realization that developed economies are not recovering has in turn been compounded with the fear that governments will rein in their spending, further accelerating the economic decline.  Add Options Expiration Week, High Frequency Trading, and tremendous leverage to the mix and equities markets experience extreme volatility like yesterday (August 18th, 2011).

But fundamentally the same game is still being played.  Japan, Europe and the US all plan to continue devaluing their currencies.  The beauty is this.  Their exchange rates relative to each other will stay fairly close to what they currently are, which facilitates trade, and keeps the average person oblivious to what is happening.  Until the cost of groceries and utilities go up, any way!  Purchasing power will decrease for all who have stagnant wages (almost everyone).  And to top it all off, the respective countries can all blame each other for devaluing their currency.  “You did it first.  We had no choice!”

Ultimately, more stimulus will be announced, but not until new names for it have been propagandized.

Gold will probably take a breather and could even correct 10% over the coming weeks, but gold mining stocks have barely moved as the barbarous relic surged..."

Fri, 08/19/2011 - 13:20 | Link to Comment BaBaBouy
BaBaBouy's picture

TYLER ???

 

""We do feel bad however for holders of paper gold, as the day of the gold share class unwind draws nearer by the day. And with 31.5 million GLD shares for a total of $5.5 billion, the unwind will be, for lack of a better word, epic. The only question is when.""

 

You do mean the unwind of GLD Etf, as in they don't actually have the GOLD Bars in the Safe, Right ???

{READ: Chavez "Knows Stuff" and wants his physical Now}

 

AND Not actual physical Goldey, which IMO is probably going well north of $10K (Conservative est) ...

Fri, 08/19/2011 - 13:25 | Link to Comment Spitzer
Spitzer's picture

Funny how gold was supposed to fall when QE ended, then it was supposed to fall when the DOW crashed, now its supposed to fall when Pauson starts dumping.

Good buy signal for gold.

Oh yeah, and it was supposed to fall when the IMF sold to India.

Fri, 08/19/2011 - 13:30 | Link to Comment BaBaBouy
BaBaBouy's picture

 

Yeah LOL ...

 

Aren't Guys like Gaartman are prodding for reasons to save their Buttocks ???

Fri, 08/19/2011 - 20:37 | Link to Comment Libertarians fo...
Libertarians for Prosperity's picture

According to regulatory filings in May, J Paulson purchased 25M shares of HPQ for ~$1B, or ~$40/share.

Today, it closed at $23.60.  That's almost a 500M loss in just a few months.

This guy needs to get back to what he's good at: conspiring with Goldman Sachs to totally fuck over pensions and municipalities with CDO's that are designed to blow up.

 

 

Fri, 08/19/2011 - 13:39 | Link to Comment Sophist Economicus
Sophist Economicus's picture

A little OT:   IB just sent out notice that it will be raising margins on GOLD derivatives and said exchnges will be raising margin requirements soon....

Fri, 08/19/2011 - 14:08 | Link to Comment BaBaBouy
BaBaBouy's picture

 

It's unbelievable, this is the LAST BULLET the Cabal has to try stopping the Gold rocket...

 

Every time GOLD makes a big overnight move, its all they can resort to to save the SHORT's Asses.

 

I  was fully expecting though, Butt we are moving fast to a physical market, free of the PAPER GOLD

NYC Bullshit Game ...

Sat, 08/20/2011 - 00:39 | Link to Comment He_Who Carried ...
He_Who Carried The Sun's picture

... and then they will introduce QE3 and the physical will go to 1200 again in just two days... LoL

Fri, 08/19/2011 - 13:47 | Link to Comment SheepDog-One
SheepDog-One's picture

Hell Spitzer, I remember when gold was declared a massive ridiculous bubble at $500!

Fri, 08/19/2011 - 13:24 | Link to Comment BaBaBouy
BaBaBouy's picture

 

RE GOLD Move ...

 

SILVER nicely confirming the GOLD action. Was waiting for this...

 

Crapex Commi shorts must be very worried right now.

Fri, 08/19/2011 - 13:48 | Link to Comment Whatta
Whatta's picture

I just bought some at-the-money GLD Sept puts....that means one thing...

Gold is got no where to go but UP UP UP...

Fri, 08/19/2011 - 13:39 | Link to Comment imsaul0968
imsaul0968's picture

Everybody, GLD has the gold in vaults and its not leant out, stop with the conspiracy theories, thats soooo yesterday...BUT, I think CEF which is 50% gold bullion and 50% silver are better ways to go than GLD and better performing over last few years.  There will be a time when institutions demand physical and thats the time when we get to see who leant it out and cant get it back and who's sitting pretty.  Why wouldnt a bunch of hegde funds all demand physical at same time, CME is at very low inventory now, wouldnt take much to create a supply panic and GLD,SLV and everyone will all go up on the news and then at some point the selling will happen in those that dont actually hold the metal...Ill take the miners who everyone has left for dead, they will have some serious catch up to do soon enough

Fri, 08/19/2011 - 13:43 | Link to Comment cowdiddly
cowdiddly's picture

GLD has it in their vaults..............AHHAHAHAHAHAHAHAHHAHHAHAHAHAHAHAHAHAHAHAHAHHAHAHAAHAHAH.

Fri, 08/19/2011 - 13:47 | Link to Comment narapoiddyslexia
narapoiddyslexia's picture

It would be nice to see some proof supporting the allegations that GLD has no gold in the vaults.

Just posting allegations like this detracts the ZH site's credibility.

Links, anyone?

Fri, 08/19/2011 - 13:49 | Link to Comment SheepDog-One
SheepDog-One's picture

Can you provide some links to any evidence they do have the gold?

Fri, 08/19/2011 - 14:06 | Link to Comment narapoiddyslexia
narapoiddyslexia's picture

see the comment several down.

Fri, 08/19/2011 - 13:52 | Link to Comment NotApplicable
NotApplicable's picture

The proof is in the prospectus. That there may be some physical there today, does not mean there will be tomorrow. (see my post below)

If it can be stuffed full of paper, you can bet it will be, otherwise they wouldn't have bothered.

Sat, 08/20/2011 - 22:22 | Link to Comment narapoiddyslexia
narapoiddyslexia's picture

This argument ["otherwise they wouldn't have bothered"] is the only one that has made some sense to me, in this whole thread. I accept that it is a good point. btw, whatever happened to journalism?

 

Sun, 08/21/2011 - 11:52 | Link to Comment narapoiddyslexia
narapoiddyslexia's picture

Another delayed realization. ZH is the new journalism. 

Fri, 08/19/2011 - 13:46 | Link to Comment Missiondweller
Missiondweller's picture

Let's be clear: GLD does not have gold in its own vault. It has gold with JPM who reportedly has enough gold to return to Chavez but maybe not any more.

Its a game of musical shares with the gold in vaults and the music may be stopping. So who gets the actual gold?

Fri, 08/19/2011 - 14:12 | Link to Comment narapoiddyslexia
narapoiddyslexia's picture

I'm not sure that's true. HSBC holds the gold. Not JPM. Morningstar analysts who have investigated the matter report as follows [source behind a paywall]:

"Despite rumors from conspiracy theorists, this fund actually holds physical gold in vaults to back up its shares. As the time of this writing, [5/27/2011] more than 40.2 million ounces of gold that are verifiably allocated to this fund's shareholders are stored securely under the streets of London. No additional shares of this fund can be produced by cash or derivatives contracts. Authorized Participants are issued shares in exchange for physical quantities of gold. The only violation to this process is a three-day waiting period from the time of share creation until the physical gold is delivered."

Any contrary evidence out there? Anyone? Is this wrong? Dated? Propaganda? Why would Morningstar lie? Has something changed since May 27th? What? What?

Talk to me.

[edit: The Morningstar analyst is named Abraham Bailin, and the quote above is from his report on GLD, easily found on Morningstar's website if you register.]

Fri, 08/19/2011 - 15:58 | Link to Comment Common_Cents22
Common_Cents22's picture

well, just buy some GLD and try to redeem.   LOL, you can't.  Read the fine print.

Fri, 08/19/2011 - 20:01 | Link to Comment Hephasteus
Hephasteus's picture

Well they are certain they can get the gold if the need to redeem. Which is only liquidation by the stock market and delisting which is part of the fraud. So of course the analyst that's part of the consipiracy sounds really convincing.

Sat, 08/20/2011 - 10:43 | Link to Comment narapoiddyslexia
narapoiddyslexia's picture

I believe you can redeem if you buy sufficient shares, but the whole point of the ETF is to provide exposure to gold for shareholders who do not want to own physical gold. 

That's exactly the purpose. I'll repeat it. Not to own physical gold.

You need to poke some holes in your tin hats, let some light in.

Sat, 08/20/2011 - 19:21 | Link to Comment Hephasteus
Hephasteus's picture

It's not a question of tin foil hats. It's a question of china raiding gld of every ounce it can get it's hands on every time it get's it's hands on any. It's not about tin foil hats. It's about being a bag holder in a redeemer world.

Sun, 08/21/2011 - 09:43 | Link to Comment Harlequin001
Harlequin001's picture

Specifically no you can't. The prospectus is very specific; only Authorised Participants can buy or redeem baskets. You can accumulate all the shares you want but you can't redeem a basket's worth even if you chose to. This gold is for the banks, and you'll be spat out when it suits their purpose.

Sat, 08/20/2011 - 16:11 | Link to Comment Young Buckethead
Young Buckethead's picture

Harvey keeps track of this better than anyone, probably as close as anyone is going to get:

http://harveyorgan.blogspot.com/

We know that the GLD prospectus is designed to fuck the investor the minute the SHTF.

Fri, 08/19/2011 - 14:06 | Link to Comment SheepDog-One
SheepDog-One's picture

Im not buying for a second any of them have vaults stuffed full of TONS of gold...totaly ridiculous and all part of the Ponzi. 'I'll happily sell you some gold and give you this paper for now...but dont worry we have the actual gold locked safely away, and plenty of it, trust us!'...YEA no thanks, I'll take my gold purchases now and you bankers can sell your paper to the suckers.

Fri, 08/19/2011 - 14:16 | Link to Comment narapoiddyslexia
narapoiddyslexia's picture

That's your perogative. But the idea that State Street and HSBC, togther with the SPDR GLD, and in effect the World Gold Council, are in cahoots to perpetrate a massive fraud is, without evidence, somewhat tiresome.

You ask for evidence the gold is there, but in truth the burden of proof lies with you.

Fri, 08/19/2011 - 16:03 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

No, actually, you are precisely 100% wrong. The burden of proof is on those who represent that they hold the gold, to prove that they actually HAVE it. That is how investing works. As an outsider or bystander, I don't have to "prove" anything in order to choose NOT to invest with those people.

Morningstar may or may not be a reliable source of that proof. Assuming the guy isn't lying about seeing a basement full of bars, how did he know they weren't just lead ingots spray painted with Krylon? Did he assay the bars? Did he weigh any of the bars?

I don't give a shit what anybody says-- I don't trust those guys for a minute, and simply don't believe anything they, or anyone else, says about what they hold.

Unless you have personal, first-hand experience, anything else is just guesswork.

Fri, 08/19/2011 - 19:51 | Link to Comment Libertarians fo...
Libertarians for Prosperity's picture

I agree. 

Not only am I a libertarian, I'm a Christian fundamentalist.  I don't care how many fossils you show me, I simply refuse to believe the Earth is greater than 6,000 years old. I don't give a shit what anybody says, I don't trust those scientists for a minute, and simply don't believe anything they, or anyone else, says about cosmology and astrophysics. 

Unless you have personal, first-hand experience (talked to God),     anything else is just guesswork.

Same goes for SLV.  It's all a lie.  There is NO silver in those vaults, and I don't care what anyone says...  I will never, ever, ever change my opinion. 

The opposite is true for PSLV.  Not only do they have ALL the silver they claim, they actually have MORE.  This is just my personal belief, and I don't need to justify it to anyone.        

Fri, 08/19/2011 - 23:59 | Link to Comment StychoKiller
StychoKiller's picture

Good, my horse was in the market for some straw(man!)

Sat, 08/20/2011 - 10:49 | Link to Comment narapoiddyslexia
narapoiddyslexia's picture

God obviously put those fossils there to test our faith.

Sat, 08/20/2011 - 14:34 | Link to Comment narapoiddyslexia
narapoiddyslexia's picture

Paranoia strikes deep.

Fri, 08/19/2011 - 16:05 | Link to Comment narapoiddyslexia
narapoiddyslexia's picture

Moreover, you need to look at the other names on that list, in the diary above. Based on that alone, the probability that GLD is going to crash, or "unwind", is acceptably small. If it happens, I'll pay the tuition for the lesson but I'm not losing any sleep.

Sat, 08/20/2011 - 16:23 | Link to Comment Young Buckethead
Young Buckethead's picture

All these newbs just don't get it. From ZeroHedge 4/7/2010:

http://www.zerohedge.com/article/latest-gold-fraud-bombshell-canadas-onl...

And, from http://bullionbullscanada.com/index.php?option=com_content&view=article&...

The first item was Morgan Stanley's bullion-fraud: where it only pretended to buy-and-store bullion for its own clients. Regular readers will already be familiar with this news, as I covered it in July of 2009 (see “Morgan Stanley pay damages for Precious Metals Fraud”). The other blockbuster news that ties in to this issue was the careless revelation by Jeffrey Christian of the CPM Group – yet another Goldman Sachs Stooge actively involved in the banksters' nefarious deeds in the precious metals market.


During the recent CFTC hearings, Christian blurted out that “the gold market was a hundred times the size” of the actual amount of “physical” bullion held by the (so-called) “bullion banks”. While I have long alleged that the banksters didn't have sufficient bullion to cover their gigantic “short” positions and their equally gigantic “custodian agreements” with the fraudulent, “bullion-ETF's” (most notably, GLD and SLV), the revelation that the banksters had leveraged their real bullion by (at least) 100:1 was a shock to everyone.


This sets the stage for the “King” interview with Harvey and Lenny Organ (father and son) along with Adrian Douglas – one of GATA's valiant directors. As a last detail, the Bank of Nova Scotia operates the primary bullion-storage vault for all of Canada and is the Canadian bank which is most active in the infamous “gold-trading” of the anti-gold banking cabal, which is rapidly losing its “grip” on this market, after a quarter century of ruthless price-fixing.


Lenny Organ had been repeatedly requesting access to the Bank of Nova Scotia's bullion vault, in order to verify his own, personal holdings – which he had chosen to buy and store through that bank. He finally obtained his invitation in September 2008, just before the most-massive spike in bullion-buying in decades (after the Wall Street-induced “crash” of 2008).


What he saw inside that vault was that (especially for silver) the “cupboards were bare”. The entire “working supply” of silver for the BNS was sixty 1,000 oz bars, with each of those bars equaling roughly $15,000 of silver apiece (at 2008 prices). In other words, the total amount of bullion held by the Bank of Nova Scotia (including what it was willing/able to sell) was worth less than $1 million.


Upon seeing that the bank didn't even hold their own bullion (which they paying “storage fees” for), the Organs demanded that BNS produce (and then store) the bullion which it already claimed to hold for the Organs. Incredibly, the BNS demanded additional storage fees and still required more than six weeks to make good on their contractual obligations.


Apart from the enormous time-lag for one of the world's largest bullion-banks to produce the bullion it was already contractually obligated to store, it appears that the banksters have two sets of storage rates for its “bullion customers”. There is the “regular” rate it charges for chumps – i.e. those clients for whom (like Morgan Stanley) the Bank of Nova Scotia only pretended to buy and hold bullion, and a second fee structure for those clients who insisted that the bank buy-and-hold real bullion on their behalf.


This is a close parallel to the bullion-ETF market, where investors can invest in the fraud-funds: GLD and SLV, and pay near-zero fees to have these funds store paper on behalf of its unit-holders; or, you can pay much higher management fees to funds like the “Central Funds” group of Canadian bullion-ETF's, or the new, physical gold “trust” from Sprott Asset Management – and know that you're holding real bullion. However, I plan on saying much more about that market in an upcoming commentary.


The gold-holdings of the BNS were not quite as sparse. There was roughly 100,000 ounces of gold storage, with a market value (at that time) of less than $100 million. However, as Adrian Douglas quickly pointed out in the interview, the Royal Canadian Mint had (by itself) sold more than a billion dollars of gold, in 2008 alone. Thus, when Canada's largest “bullion bank” has a cumulative total of bullion (acquired over years and decades) that amounts to much less than 10% of Canadian demand for one year, you don't have to be Sherlock Holmes to conclude we are witnessing yet more bankster bullion-fraud.


The obvious advice to any and all Canadians who think that the BNS is storing bullion on their behalf is to immediately demand to see your bullion, to immediately convert your BNS gold (and silver) “certificates” into real bullion, and then to personally make arrangements to store your own bullion – where your own banker can't sell it to someone else.


One has to wonder if we are about to witness our own “class action suit” on bullion-fraud, similar to when Morgan Stanley was sued in 2005, or perhaps a wave of class-action suits. In the 100:1 world of bullion-leverage in which the banksters dwell, those bank clients (all over the world) who think they own bullion are most likely only holding paper. Indeed, the most-hilarious moment in the “King” interview was Adrian Douglas' observation that the “gold certificates” of the BNS state they are “backed by the assets” of the BNS – but make no claim to actually “back” those certificates with any bullion, at all.


However, while the certificates themselves make no reference to representing actual bullion, the storage contracts from the BNS explicitly discuss fees relating to the buying/selling (and holding) of “metal”. Thus, assuming that the BNS “bullion dealers” understand the distinction between “metal” and “paper”, and assuming that any/every judge is also capable of making that distinction, the case of fraud against the BNS is “open and shut”.

Fri, 08/19/2011 - 13:49 | Link to Comment NotApplicable
NotApplicable's picture

How much of GLD's "gold in the vaults" are Comex futures? And how many Comex futures are settled for delivery with GLD shares?

Even if those numbers aren't scary today, I'll bet that the "Authorized Participants" can replace any physical with paper quicker than the books can show it.

Fri, 08/19/2011 - 13:10 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

double post.  server went bizarro on me.

Fri, 08/19/2011 - 13:24 | Link to Comment disfiguredskating
disfiguredskating's picture

Yeah, I would love to see the unwind.  I imagine everyone wondering where their gold is would be like this:

 

http://youtu.be/16HYqn9Kdwo

 

haha!

Fri, 08/19/2011 - 13:01 | Link to Comment CapedCrusader
CapedCrusader's picture

Why the fascination with Paulson?  Jealousy?  

Fri, 08/19/2011 - 13:11 | Link to Comment Pladizow
Pladizow's picture

Its the joy in seeing a global elitist criminal get a taste of what he really deserves.

Fri, 08/19/2011 - 14:36 | Link to Comment Thorlyx
Thorlyx's picture

nice tits by the way....

Fri, 08/19/2011 - 14:01 | Link to Comment Spastica Rex
Spastica Rex's picture

Schadenfreude does not always stem from jealousy. The music of the cosmos is sometimes beautiful.

Fri, 08/19/2011 - 20:08 | Link to Comment Hephasteus
Hephasteus's picture

Jealousy is an emotional distortion of projection bias. Shadenfreude precludes the possible existance of jealousy. Why would you get so much joy from something terrible happening to someone when you want to be in their shoes.

Jealousy is a just a cop out to try to get out from under the crushing shadenfreude which is pure punitive retribution.

Fri, 08/19/2011 - 13:04 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

Fire the nut CEO. Seriously wtf?

Fri, 08/19/2011 - 14:23 | Link to Comment Azannoth
Azannoth's picture

Paper Wealth in your face, paper wealth is just that paper

Fri, 08/19/2011 - 13:10 | Link to Comment Yardstick of Ci...
Yardstick of Civilization's picture

Yes, bad for paper gold.  How will it effect futures and the spot of physical though, as GLD sells into the liquid market?

Could Paulson cause the top in gold by selling his stake in GLD?  I've been wondering about this for a while.

Fri, 08/19/2011 - 13:27 | Link to Comment Spitzer
Spitzer's picture

QE ending, the DOW crashing and the IMF selling was supposed to be bad for paper gold too.

How did that work out ?

Fri, 08/19/2011 - 13:50 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

All solid points.  Add to that the inevitable QE 3 in some permutation or another towards the end of August.  Paulson unloading his entire GLD stake would probably result in a one day, 3-4 point bump to the downside, quickly to be engulfed by the end of the next trading day.  I get the underlying issues with it's actual physical holdings, but at the end of the day, the vast majority of GLD buyers and sellers really don't give a shit.

Fri, 08/19/2011 - 14:39 | Link to Comment narapoiddyslexia
narapoiddyslexia's picture

Why would he sell it? Its the only performing asset he has.

Fri, 08/19/2011 - 14:09 | Link to Comment imsaul0968
imsaul0968's picture

So Paulson has taken it prison style this year so far and one of the only things thats working is GLD and you seriously think he will sell this winner? Please...Not to mention he offers investors 2 share classes, 1 in dollars and the other in gold so to think he will be selling his GLD anytime soon is to not understand how his business works. He believes strongly that gold will go much much higher, he's a patient, passive holder

Fri, 08/19/2011 - 16:02 | Link to Comment Common_Cents22
Common_Cents22's picture

depends if he has to raise cash for margin calls or for any fund redemptions, not sure what his redemption windows are.

Fri, 08/19/2011 - 13:10 | Link to Comment brew
brew's picture

Apparently, my State Farm policies will be going up...unexpectedly...

Fri, 08/19/2011 - 13:57 | Link to Comment DosZap
DosZap's picture

brew,@13:10

Mine too....................

And I will save this, to prove to them, they are LYING as to WHY.

Bstds.

 

BTW, look at Blackrock.............tidy outflow.

Fri, 08/19/2011 - 14:06 | Link to Comment Larry Darrell
Larry Darrell's picture

I saw them on the list and had the same thought as the 2 of you.

The funny thing is, I just altered a lot of my policies with my local agent 3 weeks ago.  He's actually a pretty decent human being.  He asked why such drastic changes to my various policies, so I told him:  "The giant USS Ponzi in in for a rough ride beginning very soon.  I want everything I must provide for my family at the lowest monthly cost, and all of my miniscule aquired wealth as liquid as possible."

We then had a brief discussion on gold.  He had the "deer in the headlights" look to him after our 45 minutes together.  He smiled, but seemed uneasy.  I'm sure the market action over the last 3 weeks has hammered home some points and maybe even allowed me to contribute to the awakening of another soul.

Fri, 08/19/2011 - 20:14 | Link to Comment Hephasteus
Hephasteus's picture

That happens when you japanese nuclear holocaust a huge amount of your assets.

Fri, 08/19/2011 - 13:12 | Link to Comment nyse
nyse's picture

Easy come, easy go...

 

p.s. Great call yesterday, BTW, Tyler. Well done, in deed.

Fri, 08/19/2011 - 13:15 | Link to Comment Fred Hayek
Fred Hayek's picture

He doesn't seem to do all that great of a job when he isn't directly in on the scam.

Fri, 08/19/2011 - 13:16 | Link to Comment gwar5
gwar5's picture

 

He'll be a big fish first in line for physical redemption of GLD.

But time's awastin' and he's probably feeling a little insecure right about now, so....

There's been ongoing quiet redemptions for physical in GLD according to FOFOA.

 

Fri, 08/19/2011 - 13:16 | Link to Comment gwar5
gwar5's picture

 

He'll be a big fish first in line for physical redemption of GLD.

But time's awastin' and he's probably feeling a little insecure right about now, so....

There's been ongoing quiet redemptions for physical in GLD according to FOFOA.

 

Fri, 08/19/2011 - 13:17 | Link to Comment Missiondweller
Missiondweller's picture

Any sophisticated investor knows the risk of holding GLD rather than physical. Its a calculated risk. Certainly not one I'm any longer willing to take.

Fri, 08/19/2011 - 13:18 | Link to Comment PaperWillBurn
PaperWillBurn's picture

Paulson won't sell his stake in GLD. He'll redeem his shares for physical.  GLD will puke up more physical sending us higher

Fri, 08/19/2011 - 13:48 | Link to Comment DonnieD
DonnieD's picture

not going to help unless redemptions are taken in physical, which wouldn't be a bad idea.

Fri, 08/19/2011 - 13:20 | Link to Comment Stochdoc
Stochdoc's picture

I bet that board of directors wishes it could take a mulligan on that whole Mark Hurd firing decision.

Fri, 08/19/2011 - 13:52 | Link to Comment pitz
pitz's picture

Nope.  He needed to go. 

Fri, 08/19/2011 - 21:47 | Link to Comment prole
prole's picture

Unless you work for Dell I can't understand your statement.  Sounds like "We needed to torpedo the company so he had to go."

Fri, 08/19/2011 - 13:20 | Link to Comment eurusdog
eurusdog's picture

1. Couldn't happen to a nice guy!

2. Silver is holong onto it gains today! Very interesting!

Fri, 08/19/2011 - 13:20 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Paulson can only trade if Goldman is hedging his bets.

Fri, 08/19/2011 - 13:27 | Link to Comment raki_d
raki_d's picture

instead of Hedging, Assuring would be a better word

Fri, 08/19/2011 - 13:38 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Agreed

Fri, 08/19/2011 - 13:23 | Link to Comment Big Corked Boots
Big Corked Boots's picture

There will never be a massacre in GLD. When the fake-gold ponzi comes apart, a phone call to 1600 Pennsylvania Avenue will be made; the executive order banning gold posession will be issued; and everyone will get freshly printed 2-ply on a roll, i.e. FRN's.

Mark my words...

Fri, 08/19/2011 - 13:22 | Link to Comment eurusdog
eurusdog's picture

1. Couldn't happen to a nicer guy.

2. Silver is holding onto it's gains from earlier. Very interesting!

Fri, 08/19/2011 - 13:26 | Link to Comment TradingJoe
TradingJoe's picture

JP will hold on to his only "winning" position to offset as much damage in the other funds as possible, then, and only then we will unwind, of course, forced by circumstances, not because he is such a great trader, allowed to pick his shorts :)))! In the end we all get what we deserve!

Fri, 08/19/2011 - 13:27 | Link to Comment lolmao500
lolmao500's picture

Paper gold will go to 0?

Fri, 08/19/2011 - 13:38 | Link to Comment raki_d
raki_d's picture

yes .. just like USD..

Fri, 08/19/2011 - 13:32 | Link to Comment espirit
espirit's picture

Actually below zero.  It will be "flushed".

Fri, 08/19/2011 - 13:28 | Link to Comment mikmid
mikmid's picture

Thanks for the update, sold my paper today and will wait for the unwind to buy back in.

Fri, 08/19/2011 - 13:30 | Link to Comment tip e. canoe
tip e. canoe's picture

must suck to be so loaded and still get served up as a patsy...join the club John.

Fri, 08/19/2011 - 13:31 | Link to Comment Yardstick of Ci...
Yardstick of Civilization's picture

Just received an interactive brokers bulletin that gold margins are being hiked . . . .

Fri, 08/19/2011 - 13:34 | Link to Comment Long-John-Silver
Long-John-Silver's picture

Everyone knows that pony was going to be showing it's one trick again (and again).

Fri, 08/19/2011 - 13:32 | Link to Comment Long-John-Silver
Long-John-Silver's picture

I've never understood what the difference was between  any of the PC builders when they bowed low before Microsoft and loaded the worst Operating System ever stolen on each and every one of them. The consumer was offered no choice at all. You purchased your PC with it's wide open, no security at all, Operating System with a separate industry devoted to charging it users fees for protecting them from viruses and hackers. It's no wonder Android (Linux) and Apple are stomping them into the ground. Lets not forget the millions of people that have loaded a straight up Linux distribution on their PC as well. HP is not the only PC builder that's going down due to their slavish devotion to Microsoft as it's only Operating system of (no) choice.

Fri, 08/19/2011 - 14:02 | Link to Comment trav7777
trav7777's picture

uh...Android is a mobile phone OS.  Crapintosh sales are a statistical blip

Fri, 08/19/2011 - 16:07 | Link to Comment Common_Cents22
Common_Cents22's picture

that's why apple OS hasn't been targeted as much.  The installed base is puny compared to MS.  As apple grows it will become more of a target.

Fri, 08/19/2011 - 18:43 | Link to Comment Tunga
Tunga's picture

No Common_Cents22; the programs that run on MACs are continuously being reduced in size and complexity. Bill Gates is a Moron of Maximum Magnitude. 

Fri, 08/19/2011 - 13:34 | Link to Comment firefighter302
firefighter302's picture

Derivatives are just another flavor of fiat supersillyness.  And a great tool to manage the underlying asset or the UA's relationship to a reserve currancy.

 

 

Fri, 08/19/2011 - 13:34 | Link to Comment chubbar
chubbar's picture

Sell your winners, let your losers run!

Fri, 08/19/2011 - 13:36 | Link to Comment sunnydays
sunnydays's picture

The day GLD blows up - some will be dancing in the streets while others wanting outright war due to be hoodwinked

Fri, 08/19/2011 - 13:40 | Link to Comment Lord Blankcheck
Lord Blankcheck's picture

'Is Goldman Eyeing Up Paulson For The Next Panic Trade"

 

Martin Armstrong warning from July 4th esay."The Fate of Gold and Oil "

 

www.martinarmstrong.org

Fri, 08/19/2011 - 13:42 | Link to Comment CPL
CPL's picture

In other news...Oracle is getting into health care...probably ran out of customers delivering their crummy database platform and piss poor support.  Can't wait to see what they do with health care.

 

Meet the Challenges of Healthcare Reform with
Oracle’s Solution for Health Insurance Exchange
 


With the release of the Department of Health and Human Services roadmap for creating Affordable Insurance Exchanges, state governments now have a framework of standards that must be adhered to. But without the right tools, establishing and maintaining compliant and effective Exchanges will be a time-consuming and complex task.

Oracle’s Solution for Health Insurance Exchange provides state governments with a powerful, cost-effective modular solution. It delivers a robust infrastructure for the secure exchange of electronic health information – empowering you to deliver the functionality and security that citizens expect and the Federal Government demands.

Join our live Webcast on Thursday, August 31 to discover how Oracle’s Solution for Health Insurance Exchange can ensure you are able to:

  • Exceed all required standards with a comprehensive set of high-performance, reusable tools
  • Minimize development risks with market-leading security built in
  • Respond rapidly to future policy changes with an automated, intuitive rules-based solution
  • Reduce cost and complexity with seamless integration with existing applications
  • Simplify the creation and management of multi-channel service portals

Don’t miss this chance to see how you can manage the complexity of Affordable Insurance Exchange development and help every citizen find the health plan that fits their needs. 

Register Now

Fri, 08/19/2011 - 13:57 | Link to Comment NotApplicable
NotApplicable's picture

Remembering how Ellison was wanting to donate Oracle to Fedgov in order to create a national ID database, this isn't surprising in the least. Especially with the feds taking over the remains of the sick-care system.

Fri, 08/19/2011 - 20:12 | Link to Comment Hephasteus
Hephasteus's picture

You have got to be kidding me. I mean I knew computer were going to get into medical industry and sort of run it but to actually see it happening.

So all they are going to do is create problems and provide solutions. Promising the solutions are cost effective but never really delivering.

Fri, 08/19/2011 - 13:48 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Holy cow, look at some of those losses. 640 million dollars for State Street. 

Shame that there is such god awful misallocation of capital in this faux-capitalist world, that a bunch of finance phd fools can lose this kind of money in a day and still rake in a fat year end bonus..... and a single day's loss of this magnitude could feed a few villages around the world for generations.

Vivek (ORI)

http://aadivaahan.wordpress.com

Fri, 08/19/2011 - 14:01 | Link to Comment DosZap
DosZap's picture

ORI,

yeah, and look at the PENSION FUNDS, and BOA,and Deutsche.........................

Fri, 08/19/2011 - 13:48 | Link to Comment SheepDog-One
SheepDog-One's picture

Robo, Gentleman Jim just sent you another email with his condolences and warm regards.

Fri, 08/19/2011 - 13:49 | Link to Comment el Gallinazo
el Gallinazo's picture

The only thing legendary about Paulson is his ability to scam other institutions through felonious fraud.  He is a runner up to Madoff in that department.  It's really a shame they indicted and convicted Madoof.  Ruined a perfect record.

Fri, 08/19/2011 - 17:23 | Link to Comment fellatio is not...
fellatio is not fattening's picture

Paulson should have a plaque on his desk  "Thank God For Groupthink"  as you can see by the list provided, NONE of these people have an original idea, they ALL buy the same shit, I guess if they ALL drop money stays where it is.  I can see the investment meetings..."OK how many funds own HPQ?  1500, Great, load up, next clusterfuck?

Fri, 08/19/2011 - 20:47 | Link to Comment Papasmurf
Papasmurf's picture

The only reason they prosecuted Madoff is he left them no choice.  He announced his guilt on camera.  If he had denied, he would have remaned free.

Fri, 08/19/2011 - 14:19 | Link to Comment Justaman
Justaman's picture

Anyone have any thoughts on what will happen to PSLV, PHYS, CEF, and GTU during the supposed great unwind of gold and silver ETFs? 

Fri, 08/19/2011 - 13:51 | Link to Comment pitz
pitz's picture

Good riddance to this turd, the company fried itself when they appointed, and let Carly Fiorina run amuck with her outsourcing and offshoring delusions of grandeur.  Buying EDS and now buying (and probably ruining) Autonomy will be the last straw for the once great empire. 

The Compaq acquisition was a giant mistake as well; they could've bought any useful parts out of bankruptcy court if they wanted.

Fri, 08/19/2011 - 13:54 | Link to Comment Seasmoke
Seasmoke's picture

Palm also ranks right up there

Fri, 08/19/2011 - 13:55 | Link to Comment falak pema
falak pema's picture

when a whole system is corrupted its a sad day and the reckoning will have to purge this out.

I feel sorry for the every day man who bought into a class A company that now is in turmoil.

Fri, 08/19/2011 - 13:55 | Link to Comment sulfur
sulfur's picture

what is it with hp dont they produce printer ink as well?

Fri, 08/19/2011 - 14:02 | Link to Comment NotApplicable
NotApplicable's picture

Kind of hard to pay all of those tech/exec salaries on ink sales, even if they do make a zillion different cartridges. High tech expenses with low tech revenue is not a successful business strategy.

Fri, 08/19/2011 - 16:59 | Link to Comment Cult of Criminality
Cult of Criminality's picture

Right

 And some people refuse to pay $75.00 for two small cartridges

like me, Its unplugged just like my tv for four years,do not have to use it . They can tank right along with the rest of them.No revenue coming from here.

Fri, 08/19/2011 - 19:54 | Link to Comment Hephasteus
Hephasteus's picture

Hewlett Packard went from producing nearly the finest stuff on the planet to a dog shit 3rd rate piece of crap company from 1987 to 2008.

Sat, 08/20/2011 - 00:11 | Link to Comment StychoKiller
StychoKiller's picture

Thank Gawd the electronic instruments division was split off (Agilent Tech.), else Mr. Hewlett and Mr. Packard would have to rise from the grave to haunt these imbeciles!

Fri, 08/19/2011 - 14:28 | Link to Comment PulauHantu29
PulauHantu29's picture

Blackrock is getting wiped out...isn't Blackrock the stock China bought a few years ago...before it collpased 60% causing China some serious pain?

China should stick to buying commodity companies---miners, etc--and oil drillers.

Fri, 08/19/2011 - 14:44 | Link to Comment JuicyTheAnimal
JuicyTheAnimal's picture

Tylers, I loaded up on the HPQ $29 puts yesterday. Closed out today @ 8X invested. Spot fucking on man. Thanks.

Fri, 08/19/2011 - 15:43 | Link to Comment Chappy
Chappy's picture

What about UGL?  They deal with gold futures.  Is that as unsafe as GLD?  I don't think UGL claims to have any gold, only follows the gold futures... Although I realize it is still paper...  Thoughts?

Fri, 08/19/2011 - 18:24 | Link to Comment Tunga
Tunga's picture

HP was the primary developer of the Holographic Imaging used in project Bluebeam. It's a cinch they have a rogue unit ready to go and then they will just fake their death; then rule the world using terrifying images of hideous giant space aliens coming to eat us.  

Fri, 08/19/2011 - 19:32 | Link to Comment prophet
prophet's picture

Paulson's gold share class clients looking relatively smart.

HPQ - multiple compression poster stock.   

Fri, 08/19/2011 - 19:43 | Link to Comment Hephasteus
Hephasteus's picture

"(as ZH predicted yesterday), shows that i) it will be a very unpleasant weekend for a lot of people"

 

I really enjoyed reading yesterdays article. I didn't even have to read todays. LOL

Fri, 08/19/2011 - 20:00 | Link to Comment MiddleageThinni...
MiddleageThinninghair's picture

If Zero Hedge has any information about pension fund performance and other pertinent information I think that would be very interesting at this time from a macro perspective.  I think this would help to develop a very important aspect of the long term implication of the markets impact on retirees.

Fri, 08/19/2011 - 22:14 | Link to Comment Yits and the Yimrum
Yits and the Yimrum's picture

John Law endorses GLD and SLV for discriminating investors

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