View Full Version : CFTC's Enforcement Unit Probes Silver Manipulation

25th September 2008, 12:40
Any one see this story in today's Wall Street Journal? CFTC Relents & Probes Silver Market


Ted Butler and Jason Hommel's complaints as well as the complaints of those contacting the CFTC directly figure heavily in the reason FOR the probe. What's going to be checked out? The Market Maker status of major banks! HOW can THEY be market makers in the commodity FUTURES market in the first place? THEY do not produce commodities!!

This may or may not change spot price.

25th September 2008, 13:23
OUTSTANDING! Thank you so much for posting this link!

Let's all hope the CFTC probe will not be rigged and they finally take the silver manipulators on!

This is proof positive that all our letter writting paid off!

25th September 2008, 13:45
Yah, they will find fault and make a big deal out of it. Except they will not be able to file charges cause we just bail out that bank... lol

25th September 2008, 13:53
No, I think you're wrong there, Argentum. Anytime the SEC or the CFTC finds criminal wrongdoing, price fixing and fraud, they have to turn the case over to the FBI. Of late, the SEC has been prosecuting quite a few cases.

I don't personally think it does much good to fine these folks; I'd like to see them all get the mazimum allowable jail sentence.

25th September 2008, 14:21
I was sort of being sarcastic. :cool:

It is good that this is happening, I'm just not going to hold my breath.

25th September 2008, 14:54
The best part is the CFTC can not do this investigation as quickly as they've been doing the other investigations to shut down the Ted Butler/Jason Hommel and fans complaints! I'm gratified people's complaints sent directly are being addressed!

The FBI investigating fraudulent loan selling practices for Lehman/Fannie/Freddie and the fraudulent insurancing practices of AIG should actually yield some more good stuff for manipulation. Especially manipulation of the futures market! That's where all the money came from to build the toxic sub prime mortgage loans!

So, now looking at this - those of you with all your life's savings in PMs may not see a rise in the spot price right away. But the open market spot price we're all aware of should be taken into consideration regarding your holdings now - cause metal is the last safe investment instrument. That value is what you should be applying to your holdings. I think it's still around $27 an ounce. Meaning - if you absolutely HAVE to sell between now and the next 3 years you'll be selling to us on this forum OR on eBay, craigslist to get the money you'd need at the time of selling. This is better than freaking about short term liquidity, most PM investors are holding longer than the 3 - 5 years it will take for this paper investment debacle to straighten itself out. People will eventually get out of paper investments. Especially people who currently have no outstanding debt load. And young people with money trying to save. They just won't go into the market.

There was a bay area survey of people over 50 about this current crisis and how they are dealing with it. I was gratified there were so many who got out of stocks over a year ago. Only one respondent bought PMs. Gold. He's a working artist, so his investment philosophy is very close to may here on this forum. Are you aware that two years ago when loan refinancing was easy to do - VERY FEW homeowners HAD to get their home appraised for the loans! When the sub prime mortgage issues first started happening, they started happening with line of credit loans! The loans went into default, because owners needed to get an appraisal before their lines of credit could be re-instated! The appraisals come out lower by 25% than what the person was borrowing!! So my ruminations about equity values yesterday is CORRECT. The de-regulation of lending practices facilitated this lax oversight in lending, and if you look at this scenario - doesn't it LOOK like a perfect scam to get large sums of money flowing through your geographical area and up your economy? Where there wasn't any before?

Is THIS really what home ownership is about?