Hike in Silver Margins causes free fall in silver prices

Harvey Organ,  Thursday, May 5, 2011

Hike in Silver Margins causes free fall in silver prices

 

Gold and Silver is on Sale...BTFD (Buy the Dips) Enjoy...

 

 

The Foundation For Gold At $5,000

Posted: May 05 2011     By: Jim Sinclair      Post Edited: May 5, 2011 at 2:22 pm
Filed under: General Editorial

Dear CIGAs,

Simply stated, the drop at this time will in retrospect be seen as the foundation for gold trading not at $1650 but rather at $5000.
Armstrong was right and wrong. He looked for a reaction in gold at a time it would not happen, to a price that simply did not and will not occur.
He is absolutely right that as June approaches this type of action is the foundational proof of a major move in gold coming out of June and continuing with the normal drama into 2015.

Relax!
Jim Sinclair

Guest Post: Today's Silver Scandal 

Submitted by Tyler Durden on 05/05/2011 18:40 -0400

Some believe the recent general commodities pullback was triggered by the series of CME margin hikes on silver within the past week, after the recent exponential run-up in silver prices. Whether or not that is true, holders of leveraged long commodities positions should have warily watched the action in the silver market. Some silver speculators may not have seen the margin hike as a constraint on lending, but it should have been a red flag for any speculator with a leveraged long position. Moreover, after silver markets closed, silver prices were getting “banged” lower in what looked like suspicious market manipulation. 

 

 

 

 

Mike Krieger Exposes "The Big Lie" 

Submitted by Tyler Durden on 05/05/2011 18:19 -0400

"I feel completely blessed to be alive right now. To be a witness and participant in a moment in human history that will be written about and passed down in tales for as long as humanity remains on this planet. We are currently observing the evaporation of what Nazis referred to as “The Big Lie.” In very basic terms the concept of The Big Lie is that if you are going to lie you may as well lie big. So big in fact that the majority of well meaning citizenry could never imagine anyone lying on such a grand scale (particularly not their government “officials”) so that they don’t even question the basis of their own reality. In the case of the United States the Big Lie is that we have a free market capitalist economy. Instead we have a corporatist/fascist economy that enriches three main groups. Wall street financiers, the military industrial complex and large multi-national corporations that don’t pay taxes. So that begs the question, how can the American people be so brainwashed into thinking they live in this false reality? It’s very easy. It’s all about the money."

Mike Krieger 

 

 

 

 

How A Charlotte Stripper Got Credit Suisse To Admit To Mortgage Fraud And That "Someone Should Go To Jail For This" 

Submitted by Tyler Durden on 05/05/2011 17:37 -0400

As part of today's subpoena of Credit Suisse over mortgages (which is yet another reason why when this is all said and done MBIA CDS will be back to trading spread from points), we encountered the following stunner. We won't bore you with details, so here is the gist: in a series of emails, represented below, we discover the beyond ridiculous story of a Charlotte stripper who had a Stated Income Loan with Credit Suisse, and when the Swiss bank decided to start backing into her actual income, which goalseeked to $12,000 a month (read the analysis on how this was achieved), which apparently raised some internal flags, and demanded that the loan be investigated, the broker claimed that the stripper's never formally disclosed income is credible and her loan should remain Stated. The last email in the thread: "Someone needs to go to jail on this one." And yet, nobody, not even Angelo Mozillo has, courtesy of the SEC. If there is one email thread that encapsulates all the excesses in the housing bubble, this is it. As for the rhetorical question at the end, we are confident that absolutely nobody will ever go to jail "on this one" or any other one for that matter.

And Now Back To Reality, And $2 Billion Dollars Closer To A Debt Ceiling Breach 

Submitted by Tyler Durden on 05/05/2011 16:58 -0400

As the market enjoys (and we use the term loosely) this brief lapse back into deflation, which given the economic contraction, so long anticipated at least by Zero Hedge, has finally materialized and put the ball straight back into Bernanke's monetary policy court, here is a brief reminder of reality: i) total debt subject to the ceiling increased by $2 billion overnight to $14,282,174, less than $12 billion away from a breach, and ii) more importantly, total securities held by the Fed increased by $27.3 billion in the past week to $2.5 trillion, an all time record. And yes, i) and ii) go hand in hand. Especially once the $2 trillion debt ceiling hike is announced. 

 

 

 

 

 

On The May 6th Anniversary, Stocks Are Now On The Edge, And Dumping Fast 

Submitted by Tyler Durden on 05/05/2011 15:18 -0400

We may be about to see how much has really changed in the one year since the first and certainly not last flash crash. 

 

 

 

 

 

 

WTI Drops Below $100, Down Almost 10% On The Day, Complete Wipeout In Euro Brent 

Submitted by Tyler Durden on 05/05/2011 14:19 -0400

The anti-speculator witchhunt is bearing fruit: following the wipe out in precious metals, the next, and key, target of this commodity take down, crude, just went from triple to double digits, hitting a low of $99.70, with the $100 limit orders resulting in a surge in the USD and accelerating the drop in EUR. Stocks continue to be completely disconnected from this massive liquidation across all commodities, as every mutual fund knows all too well that Ben will always step in and make sure that the Russell 2000 never has a downtick. Yet this complete isolation of equities from other products merely confirms that not even the HFTs correlate stocks to other asset classes. It also means that HFTs are no longer present in stocks, which means that even the fake liquidity provided by HFTs is no longer there, and we will likely have a far worse flash crash the second Brian Sack loses control of the stock market.