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JPMorgan (JPM) is apparently cutting back its exposure to silver futures, a move sources say is...

JPMorgan (JPM) is apparently cutting back its exposure to silver futures, a move sources say is meant to deflect criticism that the bank is manipulating the market.
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Comments (23)
  • djbigley
    , contributor
    Comments (108) | Send Message
     
    Am I the only one who believes they are wrong for doing this? Cutting back exposure so they can deflect criticism? They have a great position, stick with it!
    14 Dec 2010, 08:59 AM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    you need to do some more reading on the subject. JPM is short over 40% the silver market lead by Blythe Masters. Show me the physical they have to achieve this massive short. Otherwise it's an illegal naked manipulation of futures.
    JPM is nothing but a large criminal organization disguised as a "bank".

     

    Oh, and if they're honestly reducing their massive short position, show me the 8K or 13D as proof! My theory?...it's B.S. propaganda to get people off their back because they're in a huge squeeze pain right now.
    14 Dec 2010, 09:05 AM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    IsnĀ“t that sweet.....Awfully nice of them ....
    14 Dec 2010, 09:09 AM Reply Like
  • djbigley
    , contributor
    Comments (108) | Send Message
     
    Your right I don't have too much knowledge on the subject. After reading your post it certainly has caused me too think of the situation a little differently. All I'm saying is, if a company has a corner on something why let it go because of criticism? Thats all... sorry for my ignorance.
    14 Dec 2010, 09:20 AM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    don't be sorry, this is why you asked the questions. There's lots of info out there on the subject to keep you reading for days on end. Good Luck!
    14 Dec 2010, 09:30 AM Reply Like
  • frosty
    , contributor
    Comments (712) | Send Message
     
    Let's see, one guy says they have a corner on the market, another says they have a massive short position (40% of the market). An article that appeared in SA a couple of days ago went further and alleged the JPM had shorted more than entire world's silver supply! My, my - talk about risk!

     

    If any of this short business were true, how is it that JPM's stock price is doing just fine, even up over the last month? Can anyone honestly believe that JPM's stockholders, who are mostly savvy mutual/pension/hedge fund managers, would stay invested in JPM if they even had an inkling this were true? Any company shorting any market 40% to 100% would not be able to maintain its stock price for very long.

     

    P.S. If they do have a long position, forget deflecting criticism. Isn't it a great time to sell when the price is near a record high? Next we need to hear criticism of excessive profits!
    14 Dec 2010, 09:45 AM Reply Like
  • Hubert Biagi
    , contributor
    Comments (711) | Send Message
     
    Bank bashing is still the feel-good norm, along with demonizing big oil, big health care, let's see, 3/4s of our economic engine. Any wonder that the recovery is so tepid, lol?
    14 Dec 2010, 09:49 AM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    "feel good norm"? Your right, banks deserve nothing but praise for what they contribute to humanity and the economy. Oh, and the "tepid recovery" is not due to "bank bashing"...unreal.
    14 Dec 2010, 09:54 AM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    "...how is it that JPM's stock price is doing just fine, even up over the last month?"

     

    Frosty, JPM is also a primary dealer of the Fed receiving millions of POMO monies almost daily. This can be leveraged multiple times directly into equities. Oh, and yes, hedgies and the such would stay with them because they know where the power is.
    14 Dec 2010, 09:58 AM Reply Like
  • Hubert Biagi
    , contributor
    Comments (711) | Send Message
     
    wow, you certainly can spin... I said big banks, big oil, big health care. So how would you characterize Obama's strategy towards big business so far, lol?
    14 Dec 2010, 10:26 AM Reply Like
  • frosty
    , contributor
    Comments (712) | Send Message
     
    MarketGuy - there are 18 primary dealers (BNP Paribas Securities Corp., Barclays Capital Inc., Cantor Fitzgerald & Co., Citigroup Global Markets Inc., Credit Suisse Securities (seekingalpha.com/symbo...) LLC, Daiwa Capital Markets America Inc., Deutsche Bank Securities Inc., Goldman, Sachs & Co., HSBC Securities (seekingalpha.com/symbo...) Inc., Jefferies & Company, Inc., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Mizuho Securities USA Inc., Morgan Stanley & Co. Incorporated, Nomura Securities International, Inc., RBC Capital Markets, LLC, RBS Securities Inc., UBS Securities LLC.)

     

    These firms deal directly with the Fed to buy the vast majority of treasuries at auctions for resale to the public. The fed does not sell silver nor does it accept short positions in silver. Or copper. So where do they supposedly get their silver from and through whom do they supposedly short?

     

    Also, the value of the world's silver supply is somewhere around $600 billion. A short position of $240 billion to $600 billion is supposed to be invisible on their balance sheet?????
    14 Dec 2010, 10:34 AM Reply Like
  • Hubert Biagi
    , contributor
    Comments (711) | Send Message
     
    OK, I'll make it easier for you, multiple choice, how would you characterize Obama's strategy towards BIG business:

     

    a. Constructive
    b. Consistent
    c. Supportive
    ---------------------
    d. Non-supportive
    e. Confusing
    f. Destructive
    14 Dec 2010, 10:57 AM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    Frosty,
    I'm well aware of who the PD's are, as well as their distributive take on Treasury buying and selling to the Fed (read: debt monetizing). Also, not once did I say the Fed deals with silver. Your question was how their stock keeps rising. A: POMO...why just this week alone over $27B (yes, billion) will be pomo'ed and leveraged on the market multiple times. Easy math.

     

    If you don't believe me about the 40% JPM short position, perhaps you'll believe Bart Chilton, Commisioner of the CTFC:

     

    "We saw very large concentrations of trader positions in 2008. That has continued. Since then, we saw one trader hold more than 20 percent of the crude oil market. Even earlier this year, one trader held over 40 percent of the silver market." These short positions are Lehman legacies JPM took over.

     

    As of last Friday, the SLV ETF (managed by JPM) held an absolute record 10,941 tonnes of silver, an increase of 163 tonnes for the week.
    "Just the facts ma'am"
    14 Dec 2010, 12:21 PM Reply Like
  • frosty
    , contributor
    Comments (712) | Send Message
     
    Fidelity manages one of my mutual funds but they don't own my shares. Who are the owners of SLV ETF? Not JPM.
    14 Dec 2010, 12:36 PM Reply Like
  • Hubert Biagi
    , contributor
    Comments (711) | Send Message
     
    ho hum... same problem with the GLD ETF, more physical gold than many countries, lol. Managed by State Street and HSBC. Wake MEE up when you find something significant, or amusing:

     

    www.youtube.com/watch?...
    14 Dec 2010, 12:44 PM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    If you haven't woken on all the facts yet, then perhaps it's a coma and not "sleep". Or..perhaps you have a vested interest otherwise and refuse to acknowledge the facts.
    14 Dec 2010, 12:56 PM Reply Like
  • frosty
    , contributor
    Comments (712) | Send Message
     
    I'll ask again, if JPM is short 40% of the silver market, where is it on their balance sheet???? And if they are so hugely short, why is their stock price so high in light of the huge risk to the company from such an exposure????

     

    Companies that manage funds and etf's don't own the shares of those funds and etf's, they merely manage the deposits, withdrawls, buying, selling, and administration for a fee. Blackrock manages all the IShares etf's but doesn't own all the positions of all those etf's. IShares also has some pretty impressive short etf's - double and triple leveraged - but doesn't own those positions. The 'investors' do.
    14 Dec 2010, 01:10 PM Reply Like
  • Hubert Biagi
    , contributor
    Comments (711) | Send Message
     
    Lol, acknowledge whose facts, that is the question, eh? Perhaps the endless parade naysayers and alarmists over the last two years have turned people comatose. The market is rigged! Double dip! Europe going bankrupt! Basically, the same message... stay on the sidelines! Meanwhile, all the people who maintained a rational and optimistic view are back to even, or better. While the Rubinis and Whitneys of this world have been shorting the market all the way up. Fact is, one could argue, those large group of market "experts" have every reason to sensationalize every bit of "bad" news and marginalize every bit of "good" news, eh?
    14 Dec 2010, 01:23 PM Reply Like
  • djbigley
    , contributor
    Comments (108) | Send Message
     
    patiently waiting a response to Frosty....
    14 Dec 2010, 10:57 AM Reply Like
  • Jim Nelson
    , contributor
    Comments (78) | Send Message
     
    Interesting reading; but if I really wanted to know what was going on I would just research the facts.
    14 Dec 2010, 11:21 AM Reply Like
  • Hubert Biagi
    , contributor
    Comments (711) | Send Message
     
    Agree, but facts don't always rule the markets. Sentiment and expectations do. Business sentiment is at low, the latest problem, brought to you by the Obama administration is this confusing and temporary tax code. The rising doubts concerning health care "reform". The continued lack of a realistic energy policy. Fortunately, the consumer is experiencing "doom and gloom" exhaustion, and has decided enough is enough. Stop with the negativity already, lol.
    14 Dec 2010, 11:36 AM Reply Like
  • wake up again
    , contributor
    Comment (1) | Send Message
     
    most of these comments are ignorant and lack common sense...you guys had better start waking up to the banksters and their scams or pity, pity, pity on you all...
    17 Dec 2010, 08:51 PM Reply Like
  • frosty
    , contributor
    Comments (712) | Send Message
     
    c'mon - it's Christmas . . . haven't you seen 'It's a Wonderful Life'?
    18 Dec 2010, 11:27 AM Reply Like
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