The Real Lesson Of SocGen

[webmaster]

Subject:The Real Lesson Of SocGen
By: Theodore Butler

Overview: I know it sounds too simple, but the problem in the SocGen episode was that too large of a position was held by a single trader. But it wasn't the large size of the position alone that was the problem, it was the fact that it was held by a single trader on a very leveraged basis.

Link: http://news.silverseek.com/TedButler/1202236407.php

[Edward Ulysses Cate]

You said in your commentary:
(Stakeholders in the CME Group, Inc., which is proposing to acquire the NYMEX, might look to resolve this issue before the transaction is finalized).

What if the Major Stakeholders in CME are the same Major Stakeholders in the largest concentration of short holdings?

For example:
http://greatreddragon.com/commentary/cme.htm
http://greatreddragon.com/commentary/morgan_chase.htm

With CME attempting to take over NYMEX, then possibly taking aim at the Kansas City and Minneapolis Board of Trades, it's starting to look like the Lousiana Purchase is unraveling.

[heinzlycklama]

Question for Ted Butler - what is the likely impact of the Repurchase
Agreements that the Fed is using to "manage" the markets, including
the precious silver market? See the following articles as reference:
http://www.libertypost.org/cgi-bin/r...?ArtNum=215246
http://www.financialsense.com/editor...2003/0602.html
Thanks.

Heinz

[SilverMountain]

Is it not possible, even likely, that these large traders shorting silver (& gold) is really just one trader: China.

China has a long history of using silver as money and may still have a very large stockpile that they are keeping quiet.

If this is the case, my bet is that China is attempting to buy up as much real silver as possible by using the paper markets as a means to keeping a lid on the price of silver. As a result, I'll bet the short position is not "naked" and that is one reason why Comex is not too fussed about the position. The other reason might be that the US Administration is trying to do the same and they don't want to blow their cover? (Or am I giving the US Admin too much credit?)

[Hataish]

Hi, This post is very informative, however there are some queries to ask about some specific topic. If someone can help me then please send me a private message. Thanks,

[JesterJay]

Please share,
What specific topic. If there are questions, we want to know them and their answers also.
Thanks,
Jay

Originally Posted by Hataish

Hi, This post is very informative, however there are some queries to ask about some specific topic. If someone can help me then please send me a private message. Thanks,