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

To: Hawkmoon who wrote (27681)	2/3/1999 3:57:00 PM
From: long-gone	Read Replies (1) \| Respond to of 116790

No, I don't, I can't even guess why they would manipulate gold this far down were it not to profit on the down and up-side. Yes, I understand the position on "right & wrong" and systemic risk, but see this and tell me these guys have been hurt at all(there would be no risk involved at a pay for this jerk at $150000 vs the current pay): No Bonuses But a Nice Salary For Leaders of Botched Hedge Fund 7.34 a.m. ET (1234 GMT) December 30, 1998 By Oliver August <Picture: The Times of London>NEW YORK — John Meriwether, the founder of Long Term Capital Management, will be paid an annual salary of $250,000 but no bonus, it has emerged. Meriwether and other partners at the failed hedge fund were angered by reports that they will personally benefit from a $50 million bonus paid to LTCM at year's end. The bonus, which was agreed by the consortium that bailed out the hedge fund in the autumn, will be used to pay legal expenses incurred during the protracted bailout negotiations. The salaries of $250,000 for each of the partners who oversaw Wall Street's most spectacular collapse in a decade were set as part of the bailout. The $50 million company bonus results from an agreement that guarantees the partners a 15 percent cut of all profits above the London Interbank Offered Rate, as well as a 1 percent management fee on the $4 billion invested. The future of LTCM is still uncertain and Meriwether has not given up hope that he could one day regain control of the fund. Goldman Sachs twice tried to broker a deal under which Warren Buffett, the American investor, would buy out the consortium. However Buffett insisted on dismissing Meriwether and his team. Goldman then approached Prince al-Waleed bin Talal, the Saudi investor. Negotiations are said to be on hold. foxmarketwire.com Note: in the body, it said they did get those bonuses

To: Hawkmoon who wrote (27681)	2/3/1999 4:29:00 PM
From: Zardoz	Read Replies (1) \| Respond to of 116790

From: #reply-7639864 Hi Paul, I've been thinking about the a response to this for a couple of days. I didn't want to come of as rude and recognize the concerns being expressed. But my first response when reading the referenced post was to laugh. The notion of an anti-trust action against the Fed on this subject is, frankly, silly. He will be laughed out of court. The notion that the world's central banks are colluding to depress gold prices is silly. They have significant gold assets and have no incentive to destroy the value of this asset. The arguement generally made is that they hope to control inflation by keeping gold prices depressed. This is economic reasoning straight out of 'Spinal Tap' (you know the bit where they are louder because their amps go to 11 when everyone else only goes to 10). At best gold reflects inflation it does not cause it. There really is no rational reason why the central banks would wan't to depress gold, it serves no purpose. Many of the gold bugs point to gold leases as if they were some sort of insidious transaction being used for malign purposes. This is a misunderstanding of what leases are and how they are used. They are simple transactions and nothing more than a financing transaction. He implies they represent a massive short position hanging over the market. What they actually represent is roughly one year's worth of supply that has been presold into the market. When the gold is produced it will be used to repay the loans and returned to the CBs. This has been functioning smoothly for years. Preselling production into the market is not at all unusual. It is in fact common to all commodity markets. My belief is the only reason it generates so much misconception in the gold markets is because of the emotional context in which so many people view gold. So I think this looming anti-trust action will go nowhere. I mentioned it several friends in the biz and they all just got a chuckle. Regards Henry