Correct...
Here is a post that discusses this. Actually, I have been reading Cafe Metropole for weeks, but didn't pay attention to anything they were saying until today.
(GATA) (1) Goldman Sachs (2) Armstrong's son, Martin Jr. (3) lawsuit - Ashanti
Subj: Midas - Looks like aSoon "The sky is falling..."
Date: 2/3/00 9:51:55 PM EST
From: LePatron@LeMetropoleCafe.com
Le Metropole members,
Midas du Metropole has served commentary at The James Joyce Table.
Midas du Metropole "The Gold Market and Precious Metals Commentary"
February 3, 2000
Midas Special
Here is what we hear is going on out there in financial land.....
Rumors began flying about ... that a major bond dealer was in trouble.
... Then, I was told it was Bank of America from a Canadian source.
... That was followed up by a New York source identifying Goldman Sachs...
... A Chicago source told me the same thing ... a European bond dealer
told me the rumors ... Deutsche Bank and Goldman Sachs.
The Chicago source said the size of the problem was astronomical -
a derivative blow up.
That same source who has long term Washington sources also told me that the
Fed was in emergency session, contrary to what they said to the public today.
More of the same just in from another Caf‚ member:
"I have very good (trading floor based) connections in the CBOT.
According to my sources, Deutsche Bank is the bond dealer in trouble.
Your recent bulletin indicated the Fed denied calling a meeting to address
the dealer's troubles, and that may be an accurate answer on the part of
the Fed. Rather than calling an emergency meeting for the dealer, I have
heard the Fed called the meeting to discuss the condition of two hedge funds
who are in very deep trouble due to the change in the yield curve. Those two
firms would, according to my sources, be Merrill Lynch (very interesting,
given their recent bailout from the commodities business) and the traders
that left LTCM to form their own fund. I can't swear by the stories that
I've conveyed, but personally I know the sources and have good reason to
believe them. Just thought you might be interested."
Not sure what our source means by Merrill Lynch - hedge fund - but this
would not be the first time Merrill Lynch got themselves in trouble with
fixed income trading. Remember Orange County! Would that not be something
if the LTCM crowd and Mr. Meriwether are right back in the soup again.
Another LTCM type bailout? I would hope not. How many chances should this
guy and his hapless crew get?
Just in - headlines hot off the Bridge News wires:
In addition, Goldman Sachs has been the big gold buyer the past two
dealers with gold rallying around $5. Does it have something to do with
their rumored fixed income problems? Too early to tell, but if they do
have some serious bond related financial problems it would make sense
that they would have to pare back on short gold positions. Their CFO.....
Ironically, Goldman was finding it hard to buy gold today. They would come
in and bid and the offers would dry up - the reason being is that they have
become such a big factor on Comex that the traders all want to go with them.
Looks like they may be a bit too big for their britches at the moment.
However, collusion crowd - not too much fear, just yet. Right at the
close "Hannibal Cannibals Chase Bank and J.P. Morgan sold the market
down. That makes sense too. Goldman has to lighten their short gold
positions on their books so fellow "cabalites" Chase and Morgan pick
up the slack at the higher end of the recent gold trading range.....
Reginald Howe's gold market commentary (Two Bills: Scandal and Opportunity
in Gold?) is getting well deserved wide circulation; it was presented today
on the www. Lew Rockwell.com. Reginald shrewdly focus's on the Exchange
Stabilization Fund in his piece. That was the first question that GATA
asked Chairman Greenspan and Secretary Summers in our open letter to them
in Roll Call on December 9, 1999.
It read:
"Does the Federal Reserve or the Treasury Department either on their own
behalf or on behalf of others, including government agencies, such as
the Exchange Stabilization Fund, lend gold or silver, facilitate the
lending of gold and silver, or trade in any securities, such as futures
contracts and call and put options, involving gold and silver?"
We are still waiting to hear from Secretary Summers and Chris Powell,
GATA Secretary/Treasurer, has already written back to Senators Dodd
and Lieberman to find out why Secretary Summers has not responded as
Chairman Greenspan did. Chris made special mention once again of the
Exchange Stabilization Fund.....
Alan Greenspan was confirmed today by the Senate to continue his role
as Fed Chairman. The four no votes were cast by Democrats Paul Wellstone
of Minnesota, Tom Harkin of Iowa, Byron Dorgan of North Dakota and Harry
Reid of Nevada.
They will be hearing from GATA soon.
The following is an excerpt from an email I received the other day.:
"I am Mr. Armstrong's son, Martin Jr. He informed me of your conversations
and expressed a need to talk to you again. As you know he has been put into
prison due to our wonderful justice system. Oh yeah, I'm sure you know they
have also taken away the funds to his lawyers... what a country!"
"I feel a strong need to bring to light the actions against my father."
"I have finally been able to meet with father this past Friday (he was
put in solitary confinement for a week and a half until the criminal
judge requested his move into general population. The funny thing is
until the judges' order the jail was "too crowded" for such a move)."
Chris Powell and I have no opinion on Martin Sr.'s innocence or guilt,
but we feel most strongly that he should be accorded the right of every
American to defend himself and not be treated like a guilty criminal
without a trial. More later.
The Ashanti verdict was due in today. We heard nothing. South Africa's
Anglogold has jumped into the bidding for some of Ashanti's prized assets
according to sources close to the affair. The outcome of what happens to
Ashanti could affect the gold market in a material way. What happens to
their hedge book? Will a good part of it have to be closed out?
Will Goldman's new bond market problems influence the Ashanti outcome?
YES! A night for just ins:
Class action lawsuit filed against Ashanti's officers and Board of Directors.
A class action lawsuit was filed today by a New York law firm against the
Board of Directors and officers of Ashanti Goldfields Co. in Ghana, Africa.
It is for shareholders that purchased Ashanti stock between July and October
of last year. The details will be all over the press tomorrow.
This is a big event for the gold market. In essence, the suit was filed
because of their excessive hedging policies. That now puts all Board of
Directors of gold producers that they are on notice that they will be held
accountable if the hedging policies of their firms are overly aggressive
and subject the shareholder to penalties as a result of a rising gold price.
YEAH!
If the supposed smartest minds in the gold world - the investment bankers
led by Goldman Sachs were advisors to Ashanti - and they blew it - how can
any Board of Director of any gold company be comfortable with any kind of
excessive hedging structure for a company that they oversee? Almost no one
thought the $84 price rise in late September was possible. That fast a price
rise was not even put in the computer models that were presented to the
Ashanti officers for option volatilities by its Goldman Sachs advisors.
Yes, indeedy. This is big news for the big picture.
With 10,000 tonnes of gold loans outstanding, what are the shorts going
to do if a bond market run up like today occurs in the gold market again?
Another yen type move!
Another $84 gold type blitzkrieg move.
What if that move is $284 in gold next time?
Yen could be found. Money can be printed. Gold?
Is the United States willing to donate the 8,000 tonnes we supposedly
have in Fort Knox (or under Fed/Treasury auspices) to bailout the collusion
bullion dealer crowd?
How will Greenspan and Summers explain that to the Congress and the
American public? How will the dollar fare in that type of scenario?
Yikes!.....
... Recent bond trade problems in the bullion banking arena and this Ashanti
news may be "Murphy's Law" going into effect against that trade.
One last Ashanti note. A birdie told that new D-Day for Ashanti is one week
to one week and one half from today.
For those of you out there that say I am a part of GATA because my gold
share investments have done so poorly and I am a poor loser:
Your dang tootin I am mad - thoroughly disgusted at the scandalous fraud
perpetuated on all of us that thought we were investing in companies involved
in a free market. If finding out that I have been playing a game that was
rigged against me so that others could make fortunes at my expense makes me
a poor loser, then yes, I am a very poor loser and also a quid pro quo man.
Tit for tat.
They had their way. GATA is going to find a way to have ours.
Somehow, someway, they are going to pay for their arrogance.
Mission not impossible.
... these $500-$600 PGM numbers is that should be us talking about the
gold price. That is where the gold price would be if the "the goon squad"
were not allowed to get away with holding down the gold price by U.S.
officialdom. Many times throughout precious metals trading, palladium and
platinum have forecasted the direction of the future price of gold.
I expect that they have done so again.
Midas
Bill Murphy ( Midas )
Chairman, Gold Anti Trust Action (GATA) gata.org
Le Patron, Le Metropole Cafe lemetropolecafe.com
The above mention of GATA is as follows.
Bill Murphy, Chairman, Gold Anti Trust Action (GATA) gata.org
Also, GATA related articles can be obtained at the pay for view site.
Bill Murphy, Le Patron, Le Metropole Cafe lemetropolecafe.com |
