Meet The New Boss

56
Fri, Apr 25, 2014 - 4:37pm

Do you know this man?

You should... he is now in charge of the CFTC, the government agency that "regulates" gold and silver futures trading, now that our buddy Gary Gensler has retired. His name is Tim Massad and he will do absolutely nothing to enforce the rule of law or ensure fairly traded markets.

How do I know this? Well, Tim Massad last worked directly for Geithner at the US Treasury department where he was best known for overseeing the 0bn troubled asset relief program, known as TARP, set up in 2008 to help prop-up ailing US banks following the financial crisis. He also worked on managing the US Treasury's investment in Citigroup. Before joining the US Treasury as chief counsel for the Office of Financial Stability in 2009, Massad spent 25 years with law firm Cravath Swaine & Moore, where he represented a range of companies including investment bank Lazard and worked to standardize legal documents that allowed derivatives to be actively traded between counterparties.

So lemme get this straight:

1. Oversaw using taxpayer money to bailout bank's gambling debts

2. "Managed" using taxpayer funds to prop up zombie bank Citi

3. Is a lawyer who represented investment banks

4. Worked to smooth-out the legal issues arising from the invention of derivatives... helped make it workable from a legal standpoint, in other words.

So if you wanted the archetype of a bankster shill/taxpayer nemesis, this would be your guy. You know what I don't see in any of this? Any experience in Commodities. Or in Futures. Or in Trading. But by all means, lets put him in charge of the Commodities Futures Trading Commission. Senate confirmed his appointment earlier this year.

So we have every reason to expect that he will watch out for small investors and will ensure free and fair precious metals markets just as his predecessor did. So meet the new boss... when it comes to gold and silver, he's the same as the old boss:

And a bonus pic, illustrating the fine work we've come to expect of the CFTC in the metals markets.

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murphySafety Dan
Apr 27, 2014 - 11:45am

@ Safety Dan

Thanks for posting the Kyle Bass links. I always enjoy the interviewer asking the pre-planned slam questions to the smartest guy in the room.

One thing I have trouble wrapping my head around.

1) Bass says the European banks have never been re-capitilized and are in worse shape than the US ones.

2) The PIIGS are toast along with France and Japan.

3) How the hell can the Euro still trade at a 35% premium to the dollar?

Therefore when Greece, France and Japan eventually blow up and write off some debt the dollar gets stronger. We know the Fed can't have that. As night follows day, the US won't be far behind to restructure/write off it's debt in order to keep the currency weak compared to the others as well? Or are my thoughts twisted?

Bass was years ahead of the mortgage crises. It follows that he is years ahead of the Greek, France and Japan ones to come that he is now talking about. In my thinking he is presently betting against the US sovereign crises and he is not talking about it.

I guess what I'm saying is there is still lots of time before the great reset. The end of this decade perhaps?

ancientmoney
Apr 27, 2014 - 11:18am

A question on banker "suicides"

Why never any big names? Are the likes of Dimon, Blankfien, Masters, etc. just so mentally strong they never fall victim to what drives people to suicide? Or, are they just so darn good at "doing God's work" that they take it upon themselves to call the shots as to when others get suicided?

pm_newbiesilver66
Apr 27, 2014 - 11:11am

just back from Jim Sinclair

Hi Silver66 & SamSchelps! I really enjoyed the presentation and the q&a format. It was very very interesting. I was also very intrigued by the work of Bo Polgny. We didn't get to hear a lot from him, but I am going to sign up for his index summary, not the trading turn dates however. Was great to meet other Turdites in real life! Thanks for offering to share some summary highlights with everyone here Silver66. I had considered doing that, but you are much better qualified! Next time I volunteer to be the note taker. My friend who I was with is a work colleague, and really helped me a lot getting into the PM space. He's been following Mr. Sinclair for six or seven years and says that coming to see him again is like getting a booster shot. Next time Mr. Sinclair is in TO I'll go again, I can definitely see the value in the booster shot anecdote. Cheers!

Apr 26, 2014 - 8:06pm

Silver 66, Deacon

Silver66- You are a stellar individual for taking the time to post and fill us all in, I can't wait!

Deacon- great links, thank you for sharing those... Fascinating!

DeaconBenjamin
Apr 26, 2014 - 8:04pm

Murphy

Just move along. Nothing to see here.

silver66
Apr 26, 2014 - 7:55pm

Just back from Jim Sinclair meeting

Had a great day, would like to give a shout out to SamSchelps, PM newbie and friend. It was great to meet you and put faces to the internet persona.

I will post a review of my notes, probably not until tomorrow. Need to decompress from the drive home and have to watch some playoff action this evening

Silver66

Based on what I heard today STACK TILL IT HURTS :-)

murphy
Apr 26, 2014 - 7:54pm

@Deacon

You would think it would be easy to locate thekiller if he committed suicide

DeaconBenjamin
Apr 26, 2014 - 4:31pm

Liechtenstein bank executive murder suspect ‘likely dead’

Police believe Jürgen Hermann, a fund manager suspected of killing a bank executive in Liechtenstein, committed suicide later the same day, although investigators were continuing efforts to track him down.

National police from Liechtenstein told a press conference that Hermann’s clothes, passport, driver's licence and a letter reading like a suicide note were found at the municipality of Ruggel, near the banks of the Rhine River. In the letter, Hermann, 58, confessed to the shooting and bid farewell to the world, police said. Sniffer dogs followed a trail to the river, where the suspect's clothes were found.

Earlier, police launched a hunt for Hermann following the shooting death of a man identified by local media as Jürgen Frick, the 48-year-old CEO of the Frick Bank at Balzers, a municipality close to the Swiss border, at 7.30am. Hermann was known in Liechtenstein for running a fund company that went bankrupt in 2004. On his personal website, he claimed to have been ruined by the Liechtenstein “financial mafia”. He specifically blamed the Frick Bank and Liechtenstein’s financial market authority for his company’s difficulties.

https://www.thelocal.ch/20140407/liechtenstein-murder-suspect-likely-end...

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DeaconBenjamin
Apr 26, 2014 - 3:52pm

What a German trading family can teach us

Jakob Fugger cancels the debts of Spanish king Charles V in this portrait by Karl Becker. Photo: Nationalgalerie via Wikimedia Commons

The Fugger family of Augsburg and their story is something that we can take solace in. It all started with Hans Fugger, a master weaver, leaving the sleepy hamlet of Graben to seek his fortune in the big smoke of Augsburg, in the year 1367. A cunning sort, he managed to enter the town's elite patrician class by marrying the daughter of a prestigious guild master. After she died, he would make another wise marital choice in marrying Elizabeth Glatterman, who herself was a canny operator.

Over the next century, the family and the large retinue of people in their employ made some spectacularly wise investments. As good Catholics, the Fuggers were the first place to go if you were a Catholic noble and you wished to give the local Protestants a good kicking. Entire armies were raised on Fugger coin and saw action not only in what we would consider Germany today, but across Europe. While realms clashed and cities fell, the Fugger corporate empire grew, insinuating itself into the lives of millions across Europe.

The most zealous Catholics around were the Spanish and they spent untold fortunes putting those to the sword who adopted the Protestant doctrine. A string of military blunders, poor fiscal choices and massive, massive inbreeding (seriously, have a look at a portrait of a Habsburg sometime) eventually meant that they couldn't pay back their loans. The sheer amount of Fugger money stitched up in Spain meant that when the kingdom went bankrupt, the Fuggers were without a vast percentage of their wealth.

The company founded almost three hundred years before was dissolved, finally, in 1607. The Fuggers family was now split into three branches, all of who persist to the present day and who are all very, very wealthy. One need only look at their website - https://fugger.de - to see the sheer size of their continuing, individual business activities of the three branches.

The Fuggers were a significant force in European politics for over three centuries and were the inspiration for many of the mega-corporations that would help build the world we live in today.

https://www.thelocal.de/20140425/medieval-german-business-empire-the-fug...

Mammoth
Apr 26, 2014 - 3:17pm

@metalsbyamile asked...

"Are those outside the U.S.A. accumulating U.S. Dollars?"

--------------------------------------------------------------------

Despite Russia's official anti $USD stance, Russians are more than happy to store their wealth in Dollars, rather than in their own country's currency.

It seems Russian's memory of their currency crash - back in the 1990's - has not been forgotten by the ordinary folks.

Just as we will not have forgotten it 20 years after the Dollar crashes here.

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