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Strategies & Market Trends : Stock Attack II - A Complete Analysis

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To: velociraptor_ who wrote (22230)10/21/2001 9:33:59 PM
From: Louis V. Lambrecht  Read Replies (2) of 52237
 
Dear Flabbergasted <vbg>
if the government is involved in market manipulation
well, well, you haven't read the gata.org Howe Lawsuit yet I presume? <g>
Notional short of the 4 major bullions banks close to $90 trillion

Greenspan, O'Neill Press For Derivatives Insolvency Law
news.ino.com
which would allow dealers to net positions of their clients in case of insolvency.
This is the swap industry: notional $90 trillion

Te Butler's gold-eagle.com warnings on Silver.

All in all, the danger in (I have to say "unsecured") derivatives is close to a notional of $200 trillion (to be compared with a total world's GDP of $41 trillion).

Frightening numbers. That's only the visible part of the iceberg.

gold-eagle.com
Once any of the Shorts decide to cover, the fun begins, because Mr. Short now has to cover ten ounces of silver with only one available. This is why as Mr. Butler has pointed out so many times the "leasing of metals" is Fraudulent. The Lessor moved the metal to someone who sold it into the market and now the fact is the metal is gone forever! What price will silver have to reach when the panic starts? How are the loans going to be paid back? How do so few ounces of physical cover over one billion ounces that have been loaned out over the past decade? I do not have a concise answer, however recent history in the palladium market does give us some clues. First who ever heard of having to put up margin at two or three times the cash (fully paid ) position? Well, check the rule changes in palladium recently. Look at how the CFTC can change the rules to suit their needs. To stop delivery of a commodity contract held by a long is against everything the free market stands for. In fact any silver bulls as old as me will remember the CFTC rule change in 1980, when the Hunt's had cornered the silver market. Only sell orders were permitted! The commodities exchange will do everything in its power to deny delivery to the longs. This can be verified by recent history, again look at the palladium market.

That is the freightening part.
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