This little-known "con" could unleash a silver buying frenzy
"THEY can sell as much as they wish, but YOU can only take as much as they allow…"  

"A people are made great in their remembering, in their memory of who they are, and how they have been secured in their places. Je me souviens. It is the memory of the prices that have been paid for them by their fathers, and the occasional willingness to stand in their father's place, and pay the same price again for their children. Not in bitter anger or revenge, as in a fearful and violent mob that too frequently turns on its own, but with a calm determination and a courageous love, of something or someone other than ourselves."

 

Bank Run In... Korea

Submitted by Tyler Durden on 02/18/2011 16:45 -0500

When one thinks of South Korea one tends to think of stable government and an even more stable financial system. That may change very soon. According to JoongAng Daily, "more than a thousand customers lined up in front of the Busan II Savings Bank located in Busan yesterday as soon as the nation’s financial regulator announced a six-month business suspension of Busan Savings Bank and its affiliate Daejeon Mutual Savings Bank." And not helping the mood was a bank employee who told the crowd that "You won’t be allowed to withdraw your money if you are just standing there without a queue ticket number." Needless to say, most promptly got a number. Those that didn't tried to get their cash at an ATM. Unsuccessfully: "Those without a ticket then headed to the automated teller machines to withdraw their money, but the machines quickly ran out of cash." And while the bank run at Busan was driven by capital inadequacy (shockingly Korea still hasn't figure out that the best way to mask liabilities surpassing assets is through pervasive fraud and suspension of all common sense accounting rules: they should promptly consult with Tim Geithner and Sheila Bair on the issue), it may promptly spread to the entire banking system. "Analysts expressed concerns that public panic about savings banks could spread.  “The fears of depositors are mounting, which could lead to bank runs at a number of savings banks, and it could eventually spread to the entire savings bank industry,” said Jung Sung-tae, a researcher at LG Economic Institute." But fear not, for the Korean government is one step ahead: "A way to secure capital [for savings banks] is to establish a joint account holding fund amounting to 10 trillion won,” explained Kim Seok-dong, FSC chairman. “This problem will be closely discussed with the National Assembly.” Any day now Korea will end up with its own version of a taxpayer funded capital block hole, a/k/a in the US as the FDIC, and all problems will be promptly brushed under the rug. We can't wait until this brilliant idea comes to China (advised by Goldman Sachs no doubt). We just wonder if it will be before or after the Chinese bank run hits...

Hourly Action In Gold From Trader Dan

Posted: Feb 18 2011     By: Dan Norcini      Post Edited: February 18, 2011 at 2:01 pm
Filed under: Trader Dan Norcini

Dear CIGAs,
Click chart to enlarge today’s hourly action in Gold in PDF format with commentary from Trader Dan Norcini

One Step Closer To The End: MERS Corporate Secretary Demoted

 

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