JPM dont just walk away, without getting creamed
they have tens of thousands of underwater short gold futures contracts
their base price is somewhere under 300
all very secretive, deadly, disastrous
silver alone is 70,000 short contracts among JPM, Citi, GS
gold is much more
as for Wstera's reference to JPMorgan bailout, dont count on it
they will lie all the way to the bankruptcy court
Enron didnt get bailed out at roughly the same mktcap
that BKcy had fallout all the way thru energy markets
the JPM fallout will have fallout thru the banking industry, the derivatives industry, the precious metals market, the mortgage industry
heck, maybe they will get bailed out
but it doesnt matter, visavis precious metals
the contracts will be made good
JPM will have to cover all 150,000 to 200,000 contracts
and gold will launch over 400 overnight
I think they will do their exit slowly, quietly
if not, they will cause a stormy feeding frenzy
just like Barrick would/will
within a year or two, all major and minor currencies will be exchanged for some form of gold
gotta love it
watch Argentina for a clue
75% currency devaluation in just a couple months !!!
/ jim |
