Thursday, February 16, 2012

Quickie Thursday

The power of accurate observation is commonly called cynicism by those who have not got it  - George Bernard Shaw
Whoever controls the volume of money in our country is absolute master of all industry and commerce…and when you realize that the entire system is very easily controlled, one way or another, by few powerful men at the top, you will not have to be told how periods of inflation and depression originate.” – President James Garfield, 2 weeks before his assassination  (sourced from Zerohedge)
One quote really leads nicely into the other....The Linsanity continues (seven in a row for the Knicks without Carmelo Anthony and with Jeremy Lin)...

Was busy trading this glorious volatility today, including buying a bunch of silver eagles for myself below $33.  Agnico-Eagle (AEM) was subjected to quite blatant downside manipulation at the open.  AEM reported a messy headline income number several hours before the market opened and someone big on Wall Street wanted to buy the stock or cover a big short.  It gapped down hard over $2 (8%) at the open.  I scanned through the earnings report about 3 minutes after the open and realized that, if you backed out all of the non-cash cash charges taken - which the market was told about months ago - the earnings report was actually quite strong.  I doubled the position in the fund near the lows of the day and now the stock is up trading up nearly 7% on the day.   The opening manipulation was a classic "plunge and buy" operation.  Amateur stuff if you know how to read it...

Anyone who thinks that a stock that behaves this way is not being subjected to nefarious and illegal trading manipulation is extremely ignorant or naive.  Anyone who thinks I'm being cynical, please re-read the opening quote.


  1. Hi Dave,

    Now the rumor has it that JR Smith will be a Knick. I hope these 2 knuckleheads won't spoil a great thing and aLINiate the rest of the team.


    1. JR Smith is the biggest tease in sports history. Just when you give up on him, that dude will go out an put up 35 points and dish out 10 assists and you love him again and then he serves up 5 dog games. When he gets hot from 3, he can hit 5 or 6 in a row and put your team back in a game when they're down 18 real quick.

  2. Meanwhile silver's short-term lease rate is steadily in the negative. I wonder what Morgue is cooking prior to next week's CRIMEX SI OE.

  3. EXK did the same thing at the open; rose from $10.02 to $10.44 and then dropped back to $10.29 at the close.

  4. Dave,

    Just glad we are kindred spirits: Loving hoops and smart about PMs.


  5. I owned AEM and made only ten percent. I wasn't paying attention when it hit 85. that would have been a little more than a double for me. This stock plus SSRI, GG and MFN are all undervalued but as I couldn't stand the heat I managed to get out of all before the fall and make a little. I'm not a trader. I'm a saver that's been taken and regurgitated by the Crooks my whole life. PVG.TO did well for me but again I exited to early. I don't trust the paper bastards now especially after MF G. These stocks are a sale but manipulated as all are. The Crooks deserve the royal MF treatment ... supply your own version. Pissed

  6. Liquidity for Everything but Mainstreet and More

    Jim Sinclair hints at Greece leaving the Eurodollar community and alleviating some of the emotional and fiscal pain hypothetically. How does the strength of the Euro really affect the US dollar and gold? Where do gold stocks fit in this picture? The value of value buying of stocks as compared to value shopping for real estate. The continuing saga of the International Swaps and Derivatives Assocation and a non-declared bank default. (The Ellis Martin Report breaks this story first and it still has legs.) China's contribution and welcoming into the International Monetary Fund (IMF) to ease the EuroCrisis.and Quantitative Easing or stimulus money landing in the banks and not on mainstreet, barely holding things together.

    Germany president resigns over finances scandals

    The President of Germany Christian Wulff resigned this morning after prosecutors asked parliament to strip him of his immunity as they investigate allegations of financial impropriety.

  7. Wall Street insider blasts his industry
    Commentary: Larry Doyle loves capitalism, but not the crony kind

    Regarding the missing $1.6 billion at the imploded firm run by former U.S. Sen. Jon Corzine, Doyle wrote: “We need an MF Global grand jury.... Money does not vaporize. Money is misappropriated. Money is stolen.”

    “In a nation now all too familiar with a “too big to fail” banking system, a heavily manipulated and high frequency dominated equity market, and an incestuous financial regulatory system, we should not be surprised with a mortgage settlement that does little more than ’piss into the wind.’”

    He has fiercely championed investors of “auction-rate securities,” whom he said have been jilted in settlements between regulators and the big firms that misled investors about the safety of these instruments. Though marketed as an alternative to money-market funds, the entire auction-rate securities market collapsed in 2008.

    “The auction-rate securities market was nothing more than a Ponzi-style financing,” Doyle said. “Four years later, there are people who still can’t get their money.”

    It was another fine Wall Street product shoved through the pipes.

    “When you tell a salesman there’s a quarter-point commission in something, they’re going to figure out a way to sell it,” Doyle said. “And they did.”

    Among the central themes on Doyle’s blog: Wall Street has co-opted regulators who are more interested in their next job than protecting investors. Washington, from the Oval Office and Congress on down, has simply been acquired. And America’s investors are often too financially illiterate to know what hit them.

    “People are basically ignorant. They are sheep. Part of the reason I launched my blog was to say, ’wake up.’”

  8. CDS- Lehman times 1000!

    Dr. Keith Barron

  9. I'm not a complete Ayn Rand fan but wasn't one of her themes about corrupt systems the inevitable pullback from the systems participants?

    RPT-After MF Global, traders hold tight to excess collateral

    Feb 17 (Reuters) - Until last October, farmers and fund managers rarely lost sleep over the extra money that they habitually maintained in their brokerage accounts, confident that it would be there the next morning.

    Now, stung by the loss of customer money from the failure of MF Global Inc, many cannot sleep soundly without transferring every spare cent into their own banks overnight.

    It is a sea change in the way that traders manage their "excess collateral" -- cash on account that is over and above the margin required to guarantee their trades. It means that floor traders and corn growers are spending more time, and in some cases money, moving cash in a process known as "sweeping."

    It is also one the clearest examples of the damaged trust between futures commission merchants and their customers in the wake of MF Global, which had been the country's most active commodity broker. Former clients are still missing over $1.5 billion of their MF Global funds, much of that "excess."

  10. For Iran, silver money is much more important than its nuclear program

    Mr. Salinas, what about gold?

    Gold is superior to all fiat currencies. The present world system, of money with no intrinsic worth, will destroy itself. We are witnessing the beginning of this process. However, gold has always been restricted to the payment of large transactions; there will always be a need for silver money, for daily use in smaller transactions.

    The reconstruction of a sound world monetary system must begin at the bottom, with the creation of silver money. Only then, when the base is in place, can a reform at a higher level take place. Reform beginning at the top is unrealistic.

    The Zionist control of international banking will, for decades, prevent the politicians and bankers of the world from deciding on any plan that involves the institution of gold as money. The decision to institute silver as money can, and must, come from a truly independent country with an enlightened leadership, thus avoiding the entanglements of international conferences.

    I should add, that today international trade is carried out with no true payment of trade deficits. Payment is the delivery of some thing, in exchange for some thing received. Transferring digits on a computer from one owner to another, is not payment, because it does not involve the delivery of some thing — as in other times, gold was the thing delivered. That was true payment and settlement of trade balances.

    If China had insisted on payment in gold for its cheap exports, it would not be worried, as it is today, about having “too many dollars in reserves” with a need to “diversify”. No one has ever had too much gold in reserves!

  11. How many of those fed chests do you think are out there and how do you tell what's real or not?

    $6 Trillion In US Bonds Seized In Zurich, Said To Pose "Severe Threats To International Financial Stability"

    Back in the summer of 2009, a peculiar story circulated when two Japanese individuals were arrested trying to smuggle $134 billion in US bonds into Switzerland from Italy. The story quickly died down after it was subsequently reported that the bonds were merely fake bearer bonds. Nobody heard much about it since then. Until today, when out of the blue we get a new story which blows that one out of the water. According to Bloomberg, "Italian anti-mafia prosecutors said they seized a record $6 trillion of allegedly fake U.S. Treasury bonds, an amount that’s almost half of the U.S.’s public debt." From here the story just gets weirder: "The bonds were found hidden in makeshift compartments of three safety deposit boxes in Zurich, the prosecutors from the southern city of Potenza said in an e-mailed statement. The Italian authorities arrested eight people in connection with the probe, dubbed “Operation Vulcanica,” the prosecutors said. The U.S. embassy in Rome has examined the securities dated 1934, which had a nominal value of $1 billion apiece, they said in the statement. Officials for the embassy didn’t have an immediate comment." ...And weirder: "The individuals involved were planning to buy plutonium from Nigerian sources, according to phone conversations monitored by the police." ...And really, really weird: "The fraud posed “severe threats” to international financial stability, the prosecutors said in the statement." Ok great, however one thing we don't get is just how can $6 trillion in glaringly fake bombs be a "threat to international financial stability."