the Sword of Damacles looms over JPMorgo's head
is that the upper head? lower head? or both?
YES
those lying crooked bastards irk me to no end
in early August, the sham with IMF on Brazil $30B funds was nothing but a public relations lie
no funds were made available to Brazilian Govt, not yet
only if they jump thru 20 fiscal hoops, not gonna happen
that poor country is the ton of bricks that might send them down the well-deserved effing tubes
also, their CFO denies wrong doing concerning hiding Enron debt, as they abided by current statutes
not good enough, fraud is fraud
he said he was personally a big buyer that morning
what he didnt say was he was a big buyer of massive option calls and stocks
and he and his entire mgmt team unloaded them over 25 to unsuspecting suckers who believed their commitment and their sponsored IMF loans
these guys truly deserve to die
here is how they die
word on WSt has that when the stock goes below 20, capital requirements dictate shedding a significant portion of their derivative book
they balance $25,000 billion in notional value derivative contracts, more than twice their nearest neighbor, more than Citi and BofAmerica combined
they must have certain levels of working capital in order to balance such large loads
surely, much long and short contracts offset
but they must meet the Comex requirements, no compromise
all kinds of underwater gold and silver contracts to cover
most of them are standard futures shorts
but plenty of other options on commodity futures
and plenty of exotics, whose descriptions would boggle the mind
with grain prices rising, perhaps some effect on grains
with MidEast pressures on oil, perhaps some effect on energy
this initial partial liquidation begins a process that will have a difficult time in stopping
then in a few months, Brazil defaults with 99% certainty
which further undermines their capital position, worsening their shortfall versus requirements
so they enter phase #2 on liquidation of derivatives
we are about to have a retest of sub-20 levels
I want these guys to die, despite the shockwaves to US financial markets and their associated asset markets
when their derivative books begin to unhinge, the common denominator of abuse is GOLD
they cannot avoid Comex requirements, which are mark2market and contractual in nature
the process is about to begin
I knew it would happen eventually
but as to when, I didnt and still dont know
INSERT TESTICLES, PRESS BUTTON, LOOK LEFT, COUGH, REMOVE
let the BALLGAME begin
we might see the JPM EFFECT hit debt, bonds, dollar, gold, silver markets, perhaps grains and energy
JPMorgo holds them all together
the process should endure several painful stages
it is important to begin the process, since its end will most likely not terminate until JPMorgo is terminated
eventually we should be hearing about federal bailout
even federal assumption of their entire derivative book
FOR NATIONAL FINANCIAL INTEGRITY PURPOSES
did anyone notice that gold rose all day long ???
it closed above yesterday's regular session end price !!!
/ jim |
