The "wynter_benton" topic

.....    Long distance runner, what you standing there for? get up get up, get outta the door. There's a dragon with matches thats loose on the town, take a whole a pail of water just to cool him down..................

trying to find more evidence of the silver derivative position or lack thereof. 

from here http://buygoldsilver.org/2010/12/whats-really-going-to-happen-to-silver-2011-2012/

Notional amounts of derivatives is not a very useful data point. The total outstanding notional amount of derivatives is the sum total of the face values of all derivative contracts. MOST derivative contracts are zeroed out with an opposing contract that is sold off to another investment bank. This balances out the risk investment banks make by writing derivatives - it's the NET amount of derivatives that JPM holds against silver that is important.

For example, HedgeFund1 asks JPM to write a derivative for $1M, JPM sells the derivative and then buys an opposing derivative from Bank2 that nets out (NET=0) their position. Then Bank2 sells another derivative to HedgeFund2.

In the end, somebody is holding the bag and the entire financial system becomes a web. But the notional amount multiplies to $6M for just one $1M contract.

I take your point about notional derivatives, but would just like to respond with something Jim Rickards said on a CNBC interview yesterday.  He was talking about the chaos that will come out of the imminent Greek default, and said that

"all the banks are saying they have no net exposure to Greece, because they are hedged with CDS so say it's a zero loss game.  - But who wrote the CDS protection and what happens when they go under and cant pay and fold ala AIG? ..all of a sudden the notional numbers are very much back in play and everybody is suddenly very exposed to Greece once again. 

that was the gist of it, and I would assume in a silver blowup situation that these numbers are going to take virtually everybody involved down. 

And the sky didn't fall in Greece... yet...

I guess that means that, whether or not WB is legit, WB's "sources" regarding Greek default are not all that on top of things...

Don't believe anything until the government denies it. 

Conventional wisdom from the Russians I believe.  Nothing has changed for the better in the financial world.  I remember an Irish Prime Minister press conference a while ago.  It is a race to the bottom in currencies and the zombie banks can't afford for any of their government bonds to go under.  Gold and silver being manipulatively repressed in a last gasp effort to prop up the fiat ponzi.  They all go down together if any one fails as the system is rotten to the core.

I think WB is legit in the sense that I doubt he/she is some kid in their parents basement with delusions of grandeur.  Official government denial is almost as good as an announcement in my books.

Awaiting WB next post.

Z

While I agree with you, WB was alluding to something far more obvious, which has not come to pass.

Remember that Loreal commercial filling the screen with bouncy-pretty hair?  Complete credit collapse in short order... fear rules the day.

Touche on that!

Less than 20 days to go and silver is not below $36     18 minutes ago    
The derivative bomb will go off in less than 20 trading days and silver does not seem like it will be below $36.

According to sources out of Greece, G-Pap has told Merk and Sarko that Greece will default in an orderly ("controlled") manner in return, Merk and Sarko won't force them out of the euro. The announcement of the default will come before the end of September. They needed the Fed's liquidity swaps to smooth things over when Greece announce the default.

As for this week, we are going to run silver like we did when the Fed made their QE2 announcement less year in November. If you recall, AGQ was below 100 on the Wednesday of the announcement and on the following Tuesday, AGQ hit 147 for the intraday high. That sort of run is coming for silver.

And take a look at KWN, it's all over for The Morgue. We told you long ago their JPM had rats and mole deep inside. Now they will be turning state's evidence.

........do da, do da...........

Simply amazing. Here is the KWN article.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/9/16_Id...