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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: IngotWeTrust who wrote (51873)	4/23/2000 6:03:00 PM
From: Bob Dobbs	Read Replies (1) \| Respond to of 116764

Ole 49er: Your reenactment of the latest hedger blowup with Ashanti and Cambior is but a confirmation of the kind of catastrophe I'm talking about, only this time on a much smaller scale. The September Gold Spike to $340 last Sept was nothing but a pop gun compared to what can happen in a real meltup. Only the weakest, most egregious hedgehogs got their tails seared that time, and the incident was contained. All the bankers did was shift their ownership from revenue of gold production profits to greater ownership of in-the-ground gold, plus, as you said, they in essense gave A&C wimpy terms to cover their own behinds. When Ken Benes talked about catastrophes, he may not have had in mind those which will befall the idiot Bullion Bankers and their redfaced Central Bank patrons, once the real reconin' goes down! Liquidity only goes so far, Ole 49er, until all those counterparties look like the French at Diem Bien Phu. Ask yourself what would happen if the bailout wasn't in the $200 M range but was rather in the several Billion $ range. How bout a gold price spike of even $100 above present prices? With a outstanding gold loan total of 8000 tons that's: 8000 tons x 31,000 oz/ton x $100 /oz = $25 Billion gone from several balance sheets. Might not the boys at Chase Manhattan jump when the derivative monkey scampers out of his cage? Even if the gold loans outstanding were half that, as GFMS avers, we're still talking about a major financial problem. What do you think will happen when the Bullion Banks suddenly have to dance with the likes of the dead JP Morgan himself? Bob