http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_J/threadvie...

Take your revenge againt The Morgue 22 minutes ago

John Embry has a new blog post at KWN. Part of the blog headline reads "JP Morgan Trapped Short in Silver" and here's a quote from the post:

When asked about silver specifically Embry replied, “The noted bullion bank, and we all know who it is, has an enormous short position (in silver), which can never be covered with real metal.  They are moving heaven and earth to try to prevent the inevitable price rise.  They will be overcome and the price will go berserk as a result of that.  So once it clears $50, which I suspect it will do in the not too distant future, it’s onward and upward.”

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/9/8_Emb...

There is no detailed explanation or quantification of the position other than "enormous". But Embry is a guy who has been around the banks and the PM markets for a long time and I believe that he knows something. Maybe there will be more details when the audio interview is released. I am not suggesting that your analysis is incorrect because I don't have an opposing argument and I've noticed that nobody else has offered one either. And I don't think Embry's reference to an "enormous short position" is related to the supposed derivatives that Wynter-Benton refers to because he says that it "can never be covered with real metal". I'm not asking you to provide an opposing analysis to your own, but have you any other thoughts on the matter?

Wow, I can hat tip every post on this page except the one that says JPM is trapped in their shorts.  Is that just a coincidence or something more sinister?  Can anyone else hat tip the post on John Embry and JPM above?

Yup, it's working now!  I guess my computer or this site is trying to get me to question my sanity............

I would think it is trading days.

There doesn't appear to be much of a chance that Ag will dip below $36 before the close.

http://search.messages.yahoo.com/search?.mbintl=finance&q=wynter_benton&...

Getting weirder.

SFH

I am disappointed that WB did not say anything about the looming deadline today for certain things to happen to The Morgue according to their postings over the past 60 days.  The WB posting on Friday was simply an observation that any of us could have made and have been making.  That being said and in the spirit of playing along until the WB legend is known for what it is, one way or the other, my thought is that the the "self-evident when disclosed event" of which WB writes will start with the downgrade/failure of several large French banks.  The article below from a month ago outlines the exposure of The Morgue and other large US investment banks to French markets.

The French Connection: Can It Drag Down the U.S. Financial Sector?

By Becca Lipman, Kapitall, The Motley Fool Posted 2:58PM 08/17/11 Investing

http://www.dailyfinance.com/2011/08/17/the-french-connection-can-it-drag-down-the-us-fina/

Although, the entire article is interesting from the perspective of being able to compare the exposure of all the large US investment banks to French banking issues overall, it states the following with respect to The Morgue:

2. JPMorgan Chase (NYS: JPM) : Money Center Banks Industry. Market cap of $140.01B. Current price at $36.88. The stock is currently stuck in a downtrend, trading -5.88% below its SMA20, -7.6% below its SMA50, and -12.79% below its SMA200. The stock has performed poorly over the last month, losing 11%.

"JPMorgan Chase & Co., the second-biggest U.S. bank, had $16.5 billion in claims on French banks at the end of 2010, excluding hedges and collateral."

Not only is The Morgue's exposure to the French markets almost 12% of its market cap, as detailed in the above article, that amount "excludes hedges and collateral."  Now, we all know that the "hedges and collateral" is most likely the real problem and the amount is unknown.  The imminent downgrade of the French banks, their intertwined exposure to the Greek financial system and The Morgue's known (and unknown) interests in both the French and Greek markets, receives my vote for the "self-evident when disclosed event," as such a loss of market cap would also leave The Morgue without enough liquidity to play the silver shell game.

Of course, the US taxpayers will most likely be called in to backstop the global bleeding (again), so who knows where this will go eventually, but in the short term, it could get ugly and certain issues could be exposed.  The PM markets have been acting strangely and it is obvious that PM price interventions are being staged and it can only be because of fear.  The question is:  fear of what imminent event?  Maybe the french downgrade is it.  Not as dramatic as the collapse of the euro but something that starts the ball rolling towards the more dramatic events.  Kind of like the at the time seemingly innocuous assassination of Austrian Archduke Ferdinand in Serbia eventually leading to the start of WWI as the act led to certain ultimatums and alliances among what is now the euro zone.

TruBlu