Fighting Back
If you're depressed and despondent over the price action in the metals, don't be. It's all simple, option expiry nonsense and it will get better next week. Besides, I have some happy news for you today...The Good Guys are fighting back.
You'll recall that late last year, the U.S. District Court in New York dismissed the civil suit for silver manipulation against JPMorgan. At the time, The Court granted the plaintiffs 30 days to re-file. Today, I'm happy to share with you that they, in fact, have re-filed and are quite optimistic about their case going forward.
First up, here's a link to the summary written by Turdville Attorney General CALawyer in the days immediately following the dismissal. You might want to review this again before going forward. http://www.tfmetalsreport.com/blog/4408/guest-post-summary-silver-civil-suit-dismissal-calawyer
Upon receipt of the filing yesterday, I once again sent it off to CALawyer for his opinion. Time was short so he was only able to reply with the email below. We are all in his debt for taking the time to review it. Again, CALawyer, THANK YOU!
Hey Turd:
This is my quick take. I read the Motion for Leave to Replead. It is very standard, and should be granted. Routine pleading, nice summary. The defense will oppose, claiming that even with all the new proposed facts, the new facts do not make a difference and thus, the Motion for Leave to Replead should be denied. It is a very low hurdle for Plaintiffs, and the Motion is almost certain to be granted, based on the new facts from the Proposed Second Amended Complaint. My read of the proposed new complaint is that this should be enough to make out a case. That may or may not be enough to get discovery launched, but the absolute last thing the defense wants is an army of Plaintiff attorney's scouring through the JPM documents. No TBTF bank wants that, ever. I hope, but I do not know, that the court will grant discovery on this based on the showing of alleged facts from the new complaint, though.
For example, look at this new allegation, at paragraph 137. I like this quote a lot:
"e. As a sophisticated and large market participant as well as a
market maker on the London market and clearing member of COMEX, JP Morgan
well knew each of the foregoing facts as they occurred. By selling in the small
COMEX market, JP Morgan knew that it received lesser sale prices because it had a greater depressant effects on prices. Thus, JP Morgan repeatedly and
uneconomically incurred additional transaction costs in order to sell at the lower
prices it caused on COMEX. JP Morgan thereby intentionally acted contrary to the
conduct of a hedger by repeatedly incurring greater transaction costs. It did so in
order to depress prices."
This allegation is tight, and makes out a compelling case, because it finally shows that JPM's behavior is illogical and hence, that leaves only the conclusion that it was manipulating prices. The distinction between the Comex and LBMA as far as price, volume, etc., is critical. Rhetorically, then, the obvious question that is asked, "Why would JPM hold a large short position on Comex to hedge when hedging on Comex cost more than on LBMA?, is then answered: "Because it wanted to manipulate prices despite the costs to do so because it made money from depressing prices, which ultimately means it was not hedging at all, since JPM would not hold a hedge that lost it money when it could hold the same hedge on LBMA without losing money."
I like the substantial allegations at paragraph 137 a lot. This could get real interesting if discovery is allowed.
That decision is the next real test, not the next motion to dismiss.
Thanks for letting me weigh in.
Anytime you need something my friend, just ask.
Sincerely,
CALawyer, Esq. Attorney General de Turdville
OK, with that, the documents to review are below. The have been filed with the court and are fully public. At this point, we'll need to let the process run its course so no need to get carried away today. However, I felt that it was important for you to know that The Good Guys are continuing the fight on your behalf. Wish them well and Godspeed.
TF
FINAL - BRIEF of JPM CIVIL SUIT RE-FILE by Turd Ferguson
Second Amended Complaint in JPM Silver Manipulation Civil Case by Turd Ferguson
Thank you for supporting TF Metals Report. Your voluntary subscriptions and donations help keep this site alive!
DONATE TODAY!









Comments
On a slow TGIF...
Dragging this out from the SpeakEasy for your amusement or serious consideration.
Ben Bernanke in his library...
http://www.tfmetalsreport.com/comment/263953#comment-263953
__________________
B. Bernanke: "QE is necessary....the benefits outweigh the costs." Jackson Hole ~ 8/31/12
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SpeakEasy,NewsTicker,iCandy-Vids http://www.tfmetalsreport.com/forums/frivolity-forum
TRUTH
SGS says JPM can stay irrational longer than you can stay....
...solvent or sane.
2+ years and the DOW is 10% ahead of Silver, as my sheep brother in law tells me every week!!!!
@carib surf king -- re the dow
Check out this article at Karl Denninger's Market-ticker site.
http://market-ticker.org/akcs-www?post=216610
He says that the same pattern of events that preceded the market crashes in 2000 and 2008 of one market leading company after another plummeting till there's no market champion left has started.
Your brother is about to get his ass kicked according to Denninger.
@Fred Hayek But so are we with Silver
I was talking with my wife about this today! She is saying sell everything, get into freshly printed dollars, so you can buy twice as much Silver sometime this year! And, I am seriously thinking about it! Which makes my sick to my stomach, but if you had done that in 2000 and 2008, you would have 4 times as many oz's!
What happened to Silver in 2000 and 2008, oooops!
My DOW loving sheep brother in law may be on the Titanic, but we probably are on the Titanic too, although ours is made of Silver, so it sinks quicker!
I just have that 2008 feeling again!
Who would have thought, we
Who would have thought, we all should have just stayed in SP 500 index funds and invest like every other blind moron!!
As a mainstream investor, you don't have to fight against TPTB, or everyday takedowns, constant manipulations, ect.
I really think many in the investment community left our sector for that very reason, why deal with this BS is their feeling, if you can't beat them, join them.
All everyone in our sector does is complain and complain, a lot of others just left and moved on to better plays. The gold and silver mining stocks are enough reason to not even bother, why fight a fight you know that can't be won?
The mainstream brain dead investor has kicked our insightful/aware asses the last 2 years, so much for paying attention, it gets you very little in this investment world.
I am afraid that many of our family and friends will be saying the same thing to all of us in the years ahead.
@ zman The only saving grace is this...
... Over the last 10 years, metals have kicked every asset classes ass, by a long way
However, the last 2 years have been so depressing that there comes a point when you cannot wait forever.
The only thing that keeps me going, is Bernanke's obsession with beating deadly deflation!
Unfortunately, by manipulation or just plain old deflation, the last 2 years have made us metal investors/thinkers look stupid ( while the DOW surged ), unless, you somehow timed the Silver and Gold 2011 tops, but that's for lucky or inside people, not us!
i found this plausible.....
from Steve Quayle's website..... it's certainly reasonable......who knows.
UPDATE ON MARKETS FROM V--FOOLS RALLY--MARKET COLLAPSE
On January 11th on the Hagmann and Hagmann show with Steve Quayle and myself as guests I broke down the plans that would emerge in the next coming weeks and months beating all market headlines by weeks yet again. Today I want to bring to remembrance something I have highlighted months ago in one of my alerts, that as the endgame is being played out you will see the market soar, the dollar rise, metals suppressed, the VIX the lowest its been prior to collapse. In other words I said that everything will be done to make the US look like the safest market to every non insider in the world. Am I wrong? Look at the DJIA at an all time high with the volatility index (VIX) at an all time low. In other words the mindless orgasmic party has begun on wall street, the revelers are euphoric as a bunch of teenagers on a drug binge. This is the fools rally that I had feared and history will repeat itself. I will update soon. The collapse will begin...V
It's all balls !
Isn't this bread and circuses weekend for the sheeple?
Good luck whatsitsface.Black Baa-lambs to win by knockout(technical)
Bly-Jam retired hurt. ;O))
My issue at this point is
My issue at this point is that every asset class really stinks-
Stocks- overvalued at this point in my opinion, but could stay overvalued for years.
Bonds- the most overvalued of all assets, again it might take many years or a decade to end this bubble.
Cash- is a loser to inflation, but at least you keep something.
PM's- the best idea long term, but it does not really keep up with inflation in the short term (3-5 years), if at all.
PM stocks- the greatest joke of all investments.
Keeping up with the cost of living and currency devaluation is almost impossible with investments, no easy answers.
Caribsurfking
What you may not be aware of is that in 2008 when the price of Comex silver dropped from $21.00 to $9.00 the price of physical did not come close to matching that drop. At the time this happened I was going to order more physical from Tulving as he had the lowest premiums around, and I had purchased from him before. The premium went from his usual $2.89 (or so) per ounce for ASEs to over $6.00 per ounce when the futures price dropped into the $9.00 to $10.00 range. So you could not buy any physical silver for anywhere near the discount seen in the futures market. Just something to be aware of.....
Stealth
@StealthBear The premium on silver ETF's did not change in 2008
So you could take advantage of the price action that way.
Yes, yes, I know its paper etc.... but that was one way to do it!
@ZMAN Good question, what does everybody use...
...day to day, that really tracks inflation and can be stored forever and is not manipulated?
How about wine/spirits? Haha
Anything else?
Alex Jones
I am not an Alex Jones fan, but I have been listening to his broadcast with Jerome Corsi, as posted by Karankawa, and I think they cover some good points. They discuss how the Cloward-Pivens plan is being fully implemented, how China is buying America bit by bit and wanting to establish free-trade zones, how Rick Perry is trying to revive the Texas section of the Trans America Corridor, money laundering by banks, the drug trade, increasing surveillance, gun confiscation and more.
I had no idea what a free-trade zone really was until about 10 years ago when I worked on a new Hyundai plant south of Montgomery, Al. We were informed the first day during orientation, that this land was under the jurisdiction of the Customs Dept., and that local or state police couldn't even set foot on it without their permission. I don't think a bunch of these zones in the control of communist China is in our best interest.
Here is the link again:http://www.infowars.com/listen-to-the-radio-show-archive/
Alex Jones
Better link for above:http://www.youtube.com/watch?v=M09HKwSFffE&feature=share&list=UUvsye7V9psc-APX6wV1twLg
OT: Michael Rupert's: The Bumpy Plateau
I think what we are seeing is what Michael Rupert referred to in his Movie: Collapse as the Bumpy Plateau. He uses oil in his example, but basically what he says is you come steeply up the growth curve of oil prices, until you start running out of oil -- and then, when demand starts to exceed supply, you (TPTB) have to destroy demand to slow consumption.
This works for a short while, but then demand collides again with the resource limit and consumption is driven down again. It creates a bumpy chart that goes up and down across a plateau. Spikes and dips. He says that what he thinks is fairly certain is that the mortal blow comes when the price spikes up one more time, and nobody can afford to buy that oil -- and everything will just shut down.
He also says certain things are inevitable right now: FDIC insolvency, Insolvency of the Federal Reserve, T-Bill defaults, Major bankruptcies, dislocation, starvation, "...all these things are already on the way, everything is going to break down differently in different places.” He also says that collapse must happen fast in order to leave the infrastructure standing. Collapse is available on NetFlix or you can rent it online at YouTube: http://www.youtube.com/movie?v=uxWpxQXMcp4&feature=mv_sr
I think something like this might be happening to PM's as well -- what the outcome and effect of that might be, I can only guess.
@Sheetrocker
Since when did "What is not in our best interests" count for anything? And if you want Chinese investment...suck it. He who pays the piper calls the tune?
Why would anybody choose The US as a place to manufacture anything? Labor rates are uncompetitive and Corporate tax rates are the highest in the developed world. There are, ultimately, consequences to bad policy decisions. If even US Companies won't manufacture anything in the US, what sort of a message does that send to potential investors? US Companies can keep all their profits outside the US to avoid US taxes, whereas for a non-US Company, the US is only a subsidiary so difficult to shelter US profits from high US Corporate tax rates. So foreign Companies (And The Middle Class)n pay taxes in the US, all others find shelters. Free Trade zones and Tax holidays for foreign investors are the only way to create manufacturing investment in the US and create employment. Ironic, isn't it?
iodine users,stock up soon.
http://farmwars.info/?p=9963
Iodine is one of many substances defined by Oregon law as a “precurser” substance. In other
words, someone, sometime, might make methamphetamine out of it. Maybe we should ban
water or spoons too, since they can be used in the process of making drugs. Where does it
end? This is pre-crime law. Even the bottle of Triodine-7 label states clearly:”Complies with
DEA Iodine Regulation 21 C.F.R. 310.2. No DEA registration required.” Yet, if anyone in
Oregon is caught with a bottle of iodine and doesn’t fit into the proper mold as defined in
Oregon pre-crime law, guess what? That person is a criminal.
LCS report
We have no local coin shop. We have a jeweler who buys gold and silver and sells some of it back to folks like myself.
I went in today looking for some 90% silver coins or some SAE's. He had neither.
He did have a small amount of Morgan Silver Dollars. When I looked interested, he told me that the premium on them was "too high" for his taste and that I should "stick to your plan of buying 90% silver US coins." He went on to explain that there was still plenty of junk silver available, whereas the other forms of silver were getting scarcer and scarcer.
When I asked why he had no junk silver, he told me that there were plenty of buyers, but no sellers. He said the average collector just wasn't parting with his/her silver. He doesn't like to order from bigger dealers due to shipping and insurance costs. But he just might have to because nobody around our area is parting with their silver.
I told him to call me when some junk silver arrives.
@Sheetrocker:
@Sheetrocker: Lysander Spooner...
In my opinion, the reasoning in this part is very sound. I have yet to hear a constitutionalist reply with anything other than a "yes, but..." That is an admission that they cannot refute it, but they will persist in their position irrationally. The same this I hear when I argue that market anarchy is the only moral system of social organization. The response is "yes, who will build the roads?" In effect, screw morality, we want some one to steal our money and take care of us.
But the money quote...
And you thought DHS and Janet Napolitano were useless...
DHS Offers Winter Storm Tips: 'If You Must Shovel Snow, Stretch Before Going Outside.'
"Change wet clothing frequently..."
Earlier today, the Department of Homeland Security took to its Twitter account to offer "tips" on how to deal with the winter weather:
The tip sheet, produced by DHS, under Secretary Janet Napolitano, reads:
1. CALawyer ! 2. Feliz Navidad (Happy Nativity) !
1. Dear CALawyer ! Is it customary to provide your insurance adjuster .... with a copy of the police report .... made under penalty of perjury .... when making a claim for silver coins .... purloined from one's home ? Thanks for sharing your expertise ! 2. The winter rains have come to the Mexican Mediterranea .... the dry pastures are grateful .... the roof leak near the foot of my bed is driving me crazy ! The layers of old asphalt roofing .... have created a mini-acquifer .... that supplies the drip .... in the wee hours .... long after the rain has stopped ! The towel I threw on the floor to muffle the .... drip, drip, drip .... is soon saturated .... even the entire contents of the dirty clothes hamper doesn't work for long ! The only thing that works .... is to drag my plastic Christmas tree into the bedroom .... and place it's thirsty branches under the drip .... now, my bedroom is as quiet as falling snow ! Monedas 1929 Comedy Jihad A Christmas Carol World Tour
that sounds liked their concerned response
to the news yesterday that Sandy victims are still without heat.
And they say the regime doesn't give a damn about its subjects....
@DHS
Is so concerned about winter weather and our safety. How cute. What connection, then, does that have to DHS being supplied with Billions of rounds of "Empty-head" ammo, and why do they need it? Answers please on a postcard to, DHS at.........................
It's probably just to protect the folks because, by then, all Second Amendment Rights will have been cancelled. As for those pesky First Amendment Rights........
Klinky / Foil ?
How much did that DHS advisory letter cost the tax payers ?
silver foil hat
I thought I'd share a little bit of trivia with you.
What you commonly refer to as tinfoil, or aluminum foil, is actually called "silver paper" in my language (Luxembourg)
:-p
@Monedas
Who will ever know? As the old adage goes, the closest thing to imortality is a Government Program. Or, in English, Programme.
Do we really need SEVENTEEN different Agencies involved with "Intelligence" Duh.....
Sheetrocker/Puck/Clink
Sheetrocker - "he compares the taxman to a highwayman, with the highwayman being preferable"
So true. Thanks for the links.
Puck - Great Stuff. I don't see how anyone could seriously argue that we are experiencing self-rule or self-determination.
Clink - If they didn't tell us to walk carefully on ice, how would anyone know to walk carefully on ice? It's like the roads that 'wouldn't get built' if the government weren't there to interfere and overpay.
BBC video on Italy's 3rd
BBC video on Italy's 3rd largest and the world's oldest bank having a bad day..........
http://www.bbc.co.uk/news/business-21207801
DHS Winter Storm "Tips"
I can't believe they neglected to include the most important tip of all (for the people who are most likely to take their advice):
"Always grasp the shovel from the skinny end, as using it improperly will cause you to remove only one inch of snow at a time, and it could also cut you".