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Physical Silver Surges To Record 30% Premium Over Spot, In Backwardation
One of the main reasons why we have been not so focused on paper representations of real currencies (i.e., gold and silver) is that ever since the MF Global debacle, in which it became all too clear that if physical gold can be "hypothecated" via conflicting ownership, then there is no way that paper versions of precious metals are viable and indeed credible. After all, the only real owner at the end of the day is the certificate holder, which as we have explained before, is none other than DTCC's Cede & Co. Good luck collecting when the daisy chain of counterparties starts falling. Which leaves physical. And for a good sense of what the "real" price of the metal is, not one determined by institutions whose interest it is to preserve the hegemony of paper, one can either try to procure gold and silver at a retail merchant, or one can look to the premium of a dedicated physical ETF over spot. Such as Eric Sprott's PSLV which as of today is trading at an all time high premium of 30%! In other words, someone is willing to pay up to 30% over spot for the right to be closer to the physical metal than merely have a paper claim on a paper claim (pre hyper rehypothecation and what not). Incidentally the last NAV premium over spot record was back in April 2011 just as silver went parabolic and the entire commodity complex experienced the infamous May 1 takedown when it collapsed by $8 dollars in milliseconds on glaringly obvious coordinated intervention. Said otherwise, like back then, so now there is an actual shortage, manifesting itself in the premium. And while last time its was the price plunge which eased supply needs, we are not so sure how one will be able to spin a collapse of the current, far lower paper silver price.
But wait, there's more: As Keith Weiner explains below, silver also happens to be in backwardation. While we have covered the topic before, here is Keith with his explanation of what this means, although for those who like the punchline here it is, as above: shortage.
The Arbitrageur: Silver In Backwardation
March silver has been flirting with backwardation since the end of 2011, and today it has moved more firmly into backwardated territory. This is extremely bullish for silver, and let me explain why.
Backwardation means (and I am oversimplifying a bit here) that a futures contract is cheaper than buying the physical good in the cash market. To understand the meaning of this, the first question is this: Is it possible to warehouse the good? If not, then the futures market is simply the market’s opinion of what the price is likely to be on the contract expiration.
Silver, unlike interest rate futures for example, can be warehoused. This means it is possible to simultaneously buy physical silver in the spot market and sell a future in the futures market. One has no net exposure to the price. One is exposed only to the spread. This is a simple arbitrage. One can “carry” a good (buy spot, sell future).
The possibility of this and other arbitrages in a good that can be warehoused changes the whole structure of the futures market. One cannot look at the price of March silver as a prediction of the March price. Absent a shortage or other anomaly, the March price should be close to the spot price + the cost of carry (interest rate and storage). March silver should be at a slight premium to spot silver. This condition is normal, and it is called “contango“.
But that is not the case for March silver (or Jul 2013 and beyond). Those contracts are priced too low for anyone to make any money carrying silver. Instead, it would be profitable to de-carry silver. See the graph for a picture of the basis (the annualized profit one would make to carry) and the cobasis (the profit to de-carry). The basis is negative and falling; the cobasis is positive and rising.
A de-carry is the inverse of a carry. One simultaneously sells silver, and buys a future against it. Silver (and gold) are unlike all other commodities in that the above-ground inventories are massive, compared to annual mine production. Whereas in wheat, for example, there is a genuine shortage before the harvest. If one wants to buy wheat two weeks prior, one must pay a large premium compared to the first contract settled after the harvest.
In a normal commodity, backwardation means shortage. The backwardation develops because no one has any of the physical good. So they cannot decarry it, and thus the spot-future spread can go deeper and deeper into backwardation.
But in gold and silver it means something else entirely. People have the metal. But for whatever reason(s), they choose not to take this free money. In the silver market right now, trust is in short supply. In the past (think fall 2010 through spring 2011), this has been resolved by sharply rising prices which coax fresh metal out of hiding.
Originally appearing at The Daily Capitalist
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Cue Trav666 and his incessant, disingenuous, erroneous claim that you called for "$60 silver next week" earlier this year.
Like a fly on shit, that's our Trav.
tmosley, akak,
Right on bitchez!
that would make YOU shit, moron.
Get cliff's cock out of your mouth, fag
Projection much?
That's probably why you always rail against those damned niggers here --- deep down you really, secretly yearn to wrap your lips around that huge swinging black meat.
LMAO.
me too....lol....
Mel Brooks said it best...Racism, though hurtful is very handy......IT IS NOT FUNNY UNTIL EVERYONE IS OFFENDED!!!
Yes, the man (Jewish) who came up up with 'Springtime for Hitler". That movie (The Producers) would never get made today.
BTW, he won an Academy Award for that screenplay ahead of films like 2001: A Space Odyssey.
The *screenplay* of 2001 is pretty crappy, tho. They were going to explain everything with a narrator at the end.
ergot needs no explanation
you have a vivid fantasy like, akock.
Get off your knees and get the nuts off your chin
How do you manage to both type and get fisted at the same time? Now THAT'S dexterity!
your perversions are disturbing, hooker
Your existence is disturbing, hater.
the consitency of the homoerotic fantasy in all these ... ("manly") exchanges is very telling, no?
From a guy named snake. LOL!!!
REALLY? You DID?
You ACTUALLY called PSLV trading at a 30% premium to NAV?
Pardon me if I recall NO SUCH PREDICTION and the reason I don't is because YOU NEVER FUCKING MADE ONE.
You pathetic weasel. All of you idiots, Akock and the rest, go to CNI or another major dealer. See fucking silver at spot+a buck fifty. 100oz bars spot +1.3.
You people are on drugs and mosely-claven, you are pathetic and shameless.
Why do you waste your time here when you could haunt an empty office building or something large enough to house your ignorance?
perhaps you are too stupid to do so, but please point out anything erroneous or ignorant in my post.
Cliff never predicted that PSLV would trade at a 30% NAV to spot.
"You people are on drugs and mosely-claven, you are pathetic and shameless."
Projection.
Hmm, every other word in your post is either capitalized, or ad hominem. Symptomatic of a weak minded individual with nothing to say.
And to respond to the accusation that I didn't predict this, I did in fact say that silver whould experience a great deal of volatility as it got pulled in two directions, with infinite supply of paper pulling paper down, and rarity of physical pushing prices up. Indeed, I said that the paper markets would look positively schizophrenic. And surprise, surprise, here they are, looking very schitzo indeed, with paper headed both higher and lower at the same time.
You are boasting of your prediction that silver would be volatile.
Well done Einstein.
Uh-huh. Belittle me all you like, but no-one was as right as I was, as early as I was. All the bears said it would go down, all the bulls said it would go up. I said that it would be stolen, the futures exchange broken, and that paper and physical would decouple among increasing volatility.
The path of the righteous man is beset on all sides by the iniquities of the selfish and the tyranny of evil men. Blessed is he who, in the name of charity and good will, shepherds the weak through the valley of darkness, for he is truly his brother's keeper and the finder of lost children. And I will strike down upon thee with great vengeance and furious anger those who would attempt to poison and destroy My brothers. And you will know My name is the Lord when I lay My vengeance upon thee.
The beauty of your theory is that whether the paper price goes up or down, you're right. And since no-one can demonstrate the 'real value' (as last time I checked, people were still using fiat as their exchange medium) you can always claim th market is disconnected.
This allows you to sit back and wallow in pomposity.
Quite neat really.
Dumbass, I'm already right. MF Global happened. The train has left the tracks. There is no stopping it.
You feel free to fly through the passenger compartment--until you hit some steel and crumple up dead.
PSLV isn't physical.
There is no disconnect.
You did not make this prediction.
You are a loser.
Any questions?
Uh, I made more than one prediciton, idiot. Here's a hint, since you are pathologically incapable of understanding the point on your own: PAPER will go schitzophrenic (you know, that mental disease everyone keeps telling you that you have), and go up and down as people alternately associate it with unlimited issuance and what is physically backing it. PSLV is perceived as having more backing than SLV or the COMEX.
Is that really so hard to understand.
I'll make another prediction here: you will continue to miss the point, and continue to scream and shout and try to defend your own discredited views until you finally choke to death on your own bile.
I predict the correct spelling is "schizophrenic".
I just checked, and I am correct.
I called it, bitchez.
Aww, you want a cookie?
Don't get it from Trav. It'll probably sterilize you.
Tmo, I gotta admit, you crack me up. You're funny, like a clown.
Oh you.
Specious and disingenuous non sequitur.
Tmosley actually "wins" when the paper price disconnects from physical silver, even if the price of physical should be also falling leading to that event (indicating a broken or collapsing paper market), OR when the price for physical silver is rising, regardless of what the paper price is doing (indicating strong and growing real demand for silver, and/or a tightening of physical supply).
no, he gets a happy ending when he comes in your mouth, you fkin hooker.
get his nuts off your chin...seriously, the only person more pathetic than cliff is YOU for being his little cheerleader. You are like bitch squared.
I shudder to ponder the sad, grim, pathetic, troubled, lonely existence of a misanthrope such as yourself, whose only apparent joy is to spread his lies, division, and filth-filled hate in an anonymous online forum. Perhaps you need some companionship, a group you could join which might offer you some hope, or some meaning to your dismal, self-loathing reality?
I might recommend the Hemlock Society.
I see veins popping out of Trav's head. Is he angry or is that from the guy standing behind him?
Hey BoP
You keep the fuck out of this....
cue someone smashing bottle on my head in the ZH bar.
Yeeeeehhhahahahahahaah.!...
Everybody pile in!
This is fun, isn't it? I played golf this afternoon. Totally wrecked the first five holes, then played the next thirteen at five over. Felt pretty good coming home, looking forward to some good green and check out the afternoon ZH posts. I saw the title and just couldn't wait to dive into the comments. I've been laughing my ass off for thirty minutes. I love this place.
They seem to be running out of steam now.
Yeah, let's see if we can stir some shit back up.
Hey, Trav, Tmo said you don't know jack shit about silver, AND he can piss further than you, too.
Tmo, Trav called you out on your ridiculous predictions that proved to be so wrong and constantly reminds you and the rest of us here that you've pretty much been wrong about everything you've said for the last year. You gonna let him get away with that?
I'd guess it's because I made some posts with logic so sound that he can't even lie his way through them.
But maybe that's my ego speaking.
Yeah what is it about your ego man?
its good zh can bring pride to someone.
i like mosely and trav anyway...
In my experience it is only when you are truly down then you can rise up again without the shackles of ego.
getting thin now - gonna stop.
I like to throw gas on the fire every now and then. Watch it burn higher....lol
Some people just want to watch the world burn.
I'd rather watch the world learn.
I'd like to teach the world to sing in perfect harmony.
Exactly. He, and a huge majority of the silver perma-bull RETARDS, will defend their predictions with two different bullshit conspiracy theories, depending on which one suits their position that day.
Example 1: Price of silver goes up today.
Silver Goon Reponse #1: See, I'm right... there's a massive COMEX-BUSTING shortage, and we're on our way to parity with gold.
Example 2: Price of silver went down today.
Silver Goon Response #2: The fucking markets are rigged by the "Cartel" and paper prices should never be trusted. In fact, paper and physical are decoupling and a COMEX implosion is imminent. PAper prices don't reflect reality. Never measure the value of your silver in fiat. Use ounces only.
This way, no matter which direction silver moves, they're always right (in their minds). Turd Ferguson's entire website is predicated on this.
*LOL* Hilarious.
Fuck off RedNeckRepugnicant.
Oops, I mean WilliamTheBastard.
Oops, I mean LongJuanSilver.
Oops, I mean TexasGunslinger.
Oops, I mean five or six other names that I have now forgotten.
Your modus operandi is so patently obvious, and pathetic, and boringly repetitious. It would be amusing, though, to have you directly address the question of why you change your handles here so frequently.
Who gives a flying leap? This is like tracking the price(s) of auto/life insurance and obsessing over whether you can get a better deal. Do YOU need the insurance or not? $15+Trillion in the hole and 535+ boneheads in charge of the checkbook sez: Yes, you do!
is this like your call that "hyperinflation is IMMINENT"?
Or is this another "$60 by next week" and when it does actually hit 60, you will declare that you are so superduper smart for predicting $60?
GFD you are just pathetically desperate.
@tmosley
YOU CALLED IT? ARE YOU FUCKING KIDDING?
Last Spring, you clearly predicted that the silver collapse was temporary, and that we'd be "back to $60 by next week."
Swing and a miss... big time.
Just three days ago, it seemed as though you had resigned to the idea that silver wasn't going to be anywhere near $40,$50, $60 or "10 times parity with gold" and, in fact, would actually trade into the lower/mid 20's with this comment: "We'll be back down before long..."
http://www.zerohedge.com/news/commodities-inverse-plunge-treasuries-catch-stocks#comment-2028640
And, NOW - three days later - you're in agreement with this current article suggesting that silver is going to surge again, which, of course, contradicts what you suggested just three days ago.
You ABSOLUTELY DID NOT call it - same goes for your imminent COMEX implosions which you pump out every few months. In fact, you've called the EXACT OPPOSITE of everything that has happened. Not once have you got ANYTHING right. Not last Spring. Not last summer. Not even 3 days ago. Your only correct prediction that "silver will be volatile" is no more insightful than saying the sun will rise.
Max Fischer, Civis Mundi
Hi RNR,
Still don't know the difference between paper and physical, I see. Clearly you are not qualified to participate in this discussion, since you are unable to tell the differnce, even when I spell it out for you. Also nice to see that you have to resort to using Trav's favorite half truth to try to discredit me, rather than, I don't know, arguing based on facts and logic. But I guess that is too much to ask of you.
Tell me, why do you feel the need to continuously change your name? Is it because you feel ashamed of the tripe you post? Or do you just keep getting banned?
ROTFL...where is the physical you buy at 30% over spot?
Look fuckhead I WILL SELL YOU EVERY GODDAMNED OUNCE YOU WANT TO BUY FOR 25% OVER SPOT.
Do we have a deal?
BTW, his entire post was pointing out facts. YOU discredit YOURSELF by being constantly WRONG. Why are you too stupid to figure this out? How much more money do you have to cost gullible people on ZH?
If I had a retirement account that was matched 100% by my employer, and you were offering to trade for that, I would take you up on it all day every day. Which is quite similar to what these people are doing. But why aren't they buying SLV?
Clearly they are ALL just "stupid". Nothing to do with trust or credibility. After all, all the funds are run by whites, so they must be good.
I noticed it's on sale again too! Wish I had some spare cash around to buy a big old pile, oh well.
Theme for 2012: Backwardated, Hypothecated, and Intoxicated. Pedal to the metal!
Yep, and this article will be a "most read 2012 list" maker for ZH, right along side the list of top 10 "I told you so" articles.
Silver...doing more than just killing werewolves since 1913.
Works wonders on squids too
I wuz hopin' Ag would drop low enough to get below my breakeven price of $29.60 (ApMex + Spot) -- came real close -- perhaps at the next drop, I'll just buy at whatever's close. Still too high for my taste.
Sweet! So my shiny white will gain back what the Brotherhood of Darkness stole from me?
All they stole was a transitory notion..
and that will be ripped from their grasp in the fullness of time.
The trick will be to keep the guarantors of peace from siezing the real thing from you.
That's why they invented guns!
Fuhkin' A! My last major purchase was at $43 back in early September, blew the wad on my first ever BTFS! My ass still hurts, but the silvers just as shiny.
"Shit is all fucked up and bullshit!"
a fool and his money are soon parted
You know what is truly pathetic and revolting about you, Trav: you do NOTHING but attack others, without EVER being for anything, or being positive toward some investment, some political strategy, some lifestyle --- ANYTHING. All you know how to do is hate, attack, tear down, deny, ridicule, mock, spit on, spread hate, etc. etc. You are truly one of the most vile and loathsome individuals whom I have ever encountered online, and I have run across quite a few.
You are, in other words, simply a negative-feeding troll.
wonder if EK is a counterparty
Looks like EK will soon join the buggy whip and sliderule manufacturers...
Have not parted with one once of either.
Volume pathetic, as usual.
Just checked my physical. It wasn't backwarding, contangoing, or carrying on. It was just sitting there, looking good.
Love it. That is exactly what I tell this one friend who never fails to email when prices drop. I just say, "Shit man, you scared me for a second there. Thanks for the heads up, but just checked my stacks and they are all accounted for. Unless my coins start disappearing, no need to remind me of the paper prices."
yeah, no sense in getting MORE silver for your FRNs. That's for REAL losers. Only idiots buy at low prices and get MORE SILVER in their stack.
Your friend should email a picture of his much LARGER stack and btw here's one of me fucking your wife, loser
Who got more silver for their FRNs, the guy who cost averaged most every month for the last four years (say the same dollar amount each month), or the person who saved up all those dollars and bought right at the most recent low from some moron who was selling right at spot?
You are not an intelligent man.
this is actually the first interesting question on this thread.
If you started Feb10, you'd be exactly even; earlier, up; later, down.
If you started buying every month at the $20 "breakout," you'd be down 12%
Wait for it........a coin in hand is worth a multitude of printed promises.
kitko is not selling monster boxes anymore. out?
Monster box = Michelle Bachmann's ax wound?
Michelle Obama
MacRib ---- CHAWMP!
143
True dat Akak....
I know I will be tar'd and feathererd for this one but she is pretty hot....better off on Youporn.com than running for the pres'dent that is for sure....
Cmon now...you KNOW she made a "run" for it to pump up the kitty then bail so SHE CAN KEEP THE MONEY HERSELF....
Beg, borrow and blow for 500MM, spend 300MM on the half-assed campaign and keep the change!
"keep on rockin in the free world..."
When the name of Michelle Bachmann popped into my mind at the mention of the word "monster", I was thinking of her political positions, notably her hysterical and rabid fearmongering and warmongering as demonstrated in the GOP debates, not her physical appearance.
The picture I see is the one where she takes the whole corndog down...
None of those other Republicons™ know their way around a footlong corndog. Ron Paul is probably a health nut (bein' a Doctor and all), so he probably don't eat deep-fried food(s).
I'm guessing that the "jump the shark" moment for Michelle, was trying to deep throat that corndog!
We've gone from "jumping the shark" to "nuking the fridge" to
"fellating the corndog" -- can life get any more absurd? (I'd like to think so!) :>D :>D :>D
Front or back?
Monster boxes in stock here
I'm gonna need the bears for this one please.
My coin shop says they have been selling more than they are buying, probably to me.
My coin shop has been refusing to sell silver... thank God (and Al Gore) for the Internet.
I hear you there, only one shop out of the five in my town is selling now unless you make orders of $2500 or more, and even there you have to wait just as long as you would for APMEX. One of the shops hasn't sold since silver dipped below $40.
When silver dives, my coin shop guy just posts a price that covers current inventory cost plus his spreads, without regard to paper price. If you want it, fine, if not, that's fine too, as that's how free-markets work.
@Ponzified
Ditto on that here...
Wife demanded carpet before Christmas and I had to sell $4K (Still $27K Net on the year) so I sold some of my 10 oz bars. "Do you have much selling going on these days?" "Nope. It comes in and it goes right back out."
If you have a good strong marriage you might try asking her how she is enjoying the carpet 1 or 2 years from now when silver has climbed back above historic highs.
If you don't have a strong marriage - don't bring the subject up. ;)
Sounds like the voice of experience typin' there! :>D
Blue line in the bottom chart is JPMorgan's toilet paper inventory.
Silver Backwardation, BIT-Chezzz
Very clear explanation of "backwardation" for the new investor from The Arbitrageur:
January 6th, 2012March silver has been flirting with backwardation since the end of 2011, and today it has moved more firmly into backwardated territory. This is extremely bullish for silver, and let me explain why...
Reading the post really is useful sometimes...
Tyler you should really make a post about silver backwardation, I think the readers would find it interesting. Stop surfing porn SEC-style and get to work already.
Tyler is a multitasker.
multityler is a tasker
Tyler is a multiTyler.
Today's topic: MultiTyler likes tits but is not titular. Discuss!
is tyler a multitasker?
No, but he is multititular.
Tyler is a multitaskingmultititularmultiTyler.
(I think we are in danger of falling into a semantic Mobius strip.)
...and now... something completely different!
...a man with a stereo up his nose.
I always thought Mobius would be a great name for a stripper.
Let's go with "Moboobius" :>D
@ redpill + 1
And just wait until GOLD goes into backwardation. Then the fun starts!
They will have to take out another futures firm to block delivery. The next story will be a whopper.
I think the saying "Imitation is the sincerest form of flattery." is appropriate here.
lol
whatever...what about backwardation?...that's what I want to know.
so does Barney Frank...
Tyler, these days in europe silver goes way more over spot than 30%, try 40%. Even scrap starts to sell 30 to 40% over spot these days.
1 oz Arch of Noah coin 25,87, incl. VAT.
Spot right now acc. to 24h gold = 22,59.
That would be about 15 % over spot (incl. VAT).
I know 2 sites who give these prices you say. And at checkout, they charge a extra commision fee of 50$ and a aditional administration cost.
Just run them to the end of the order process, you'll see.
The only "extra" was shippingcost. Insured for 29,95.
BTW I'm not talking dollars but euro's.
http://www.bullion-investor.com/silver.
They show several dealerprices for most silver bullion.
billsbest,
Interesting backwardation article.
http://www.zerohedge.com/news/physical-silver-surges-record-30-premium-o...
Utter fail.
Bizzaro World rears its ugly head once again!
Silver is down 40% off of it's highs, yet it's in backwardation.
I'd like to see someone try to explain their way out of this contradiction.
Ok. The paper price is manipulated and the physical price is real. Clear now? :)
Nice. And in 1/4 the words of my epistle. :D
nah; the paper price for immediate delivery is higher than the paper price for future delivery.
I like how you don't bother to think about the implications of ANYTHING you say, true or otherwise.
Somehow, I am sure that niggers are to blame for that.
Akak....speaking of the N word....you ever see that South Park episode where Cartmans dad is on Wheel of Fortune? It's over the top, I mean those two (Trey and the other dude) needed to just quit after that epsisode since they cnat get funnier than that...I mean it's truly a gut buster.....
Pull it up on youtube....southpark wheel of fortune, i wont give it away but it's outrageous....better than Chappelle's black KKK member....
check it out...lol
I've seen my share of "South Park" episodes, but somehow never caught that one.
I'll check it out.
http://www.youtube.com/watch?v=HDwvfVRt0Mo
Cartman hasn't got a Dad, well not a known one. You mean Stan ;O) And yes, good episode!
Silmer03,
my bad...thanks for the tip.....lol....
Do you think it's ok for you to use that word? seriously?
From the safety of your keyboard, hooker
LOL... naaa Jews
you couldn't name one of the implications, even if it weren't true that other commodities have gone in and out of backwardation for some time now.
Ok. so what does backwardation imply?
I await your stupid answer.
I only used the word "nigger" in a neutral, sarcastic sense.
You are the one who consistently gives it its hate-filled, racist meaning here.
Errr... I meant explain it as a non manipulated natural market function.
In other news, I just discovered that manipulate lacks an antonym.
Humor by small font - outstanding!
Unfettered will do in a pinch
"womanipulate"
LOL
Sounds expensive.
And redundant!
As long as the dealers are still influenced by the paper shufflers then I'm going to have to hold out for lower prices before I start adding more. I'm still hoping/praying for 1250ish gold which is where I load up on silver. All you hair trigger silver buying bitchesz are holding the price up on me.
Market price quotes are at the margin. Keep squeezing all the paper holders and weak hands with manipulated margin calls, and eventually the only ones left are physical holders. The monkey-hammering of manipulation since Ag poked $50 has been extreme, knocking down the price of the on-the-margin paper holders while at the same time exposing the solid physical holders underneath.
Store. Wait. Win.
CCG (Converts Come and Go)
There's enough evidence to substantiate that the silver market is rigged and manipulated.
Weak hands will continue to get shaken out....soze Bullion Banks can cover and ready themselves to be "long" for the parabolic tsunami.
Within the ocean of converts and late to the party types....there will also be "strong hands"....DCA'ing their stacks to a lower price on these pullbacks....and more than happy to counterbalance the selling by the weak hands.
Not everyone was meant to be involved in gold and silver. The "weak stomach" types in society will always outnumber those with intestinal fortitude. If next week comes the 'pink slip' or the 'call' from the predatory lender looking for more cash....the over-leveraged and debt ridden slaves will fall away....it's just the nature of this beast of a bull market.
What happens if those "locked in" interest rates on your 'Debt Shack' turns out to be not-so "locked in" after all....and how much faith and trust would people put in the banking industry to honor contracts at this point in time. Precedent is being set as we speak....criminality is fully endorsed and licensed....they do a test run (read: MF Global) to see how asleep their serfs are and quage the level of larceny that the future can afford them.
Gold and silver will continue to test the resolve of the unwashed masses.
Get "prepped" accordingly....and you'll be less likely to get pushed outta your positions.
I've yet to talk to a single person who knows anything about MFG, let alone understands its ramifications.
It's like I'm standing in a room full of people, where suddenly Corzine pulls out an Uzi, mowing down all of the productive ones in cold blood. Yet I'm the only one who saw anything, as everyone else was too busy sticking their heads up their asses to notice.
So, here I am, shouting that Corzine has murdered not only the producers, but all of us who depend on them. Replies so far:
1) "Who's Corzine?" (typical answer)
2) "Fuck Wall St! They deserve it." (OWS crowd)
3) Blank stares, drool.
4) "Oh, they'll straighten it all out." (defenders of the faith)
Now, being from a fly-over state, people are familiar with farming, so I bring up the plight of the farmer, who legitimately uses this market to hedge their risk. Big mistake. Hedge, see, is now nothing more than a code-word for hedge funds (see reply 2).
Yep, it was a test run. A damned successful one.
There are a few less than friendly cattle rancher's in Montana and Texas now, careful where you step.
Maybe you need to move to Wisconsin.
In all honesty, I only know of one or two people who still have the wool pulled tightly over their own eyes- it's been my experience that almost everyone I know that is "middle class" is sick and tired of this shit. While not everyone has all the same details, there's a more-or-less constant dialogue about what happened to us and why. ZH is only one set of theories- I've heard a hundred variations, but most of them come down to guns and/or food storage as a solution, and I know of only one guy (he's still in college) that still actually holds stock.
In all fairness, if you just name-dropped Corzine on me on a regular day, "Who?" would be my response as well- but MFG perks my ears up right away.
It is something that probably needs to be pointed out, IMO. Just because Tyler didn't tell someone something, it doesn't make them an idiot. The only idiots are the ones wandering around thinking everything is still ok, and I meet fewer of those every year. The big disconnect is that most seem to engage politics rather than finance- my ongoing theory is that it is because most folks just don't "speak" math.
Most folks don't need math to understand "Reach for the sky and hand over yer walletz..."