Jul 04

What JPMorgan is doing to the “Other” commodities space, Citigroup has just done to the “Precious Metals” derivative market.


Citigroup Just Cornered The “Precious Metals” Derivatives Market (ZeroHedge, July 4, 2015)

 

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One Response to “Citigroup Just Cornered The “Precious Metals” Derivatives Market”

  1. Marilyn Gjerdrum Says:

    From what I have read on this site, the UK Guardian, and a few others over the past few days, it has been clear the crash is commencing, and it will be far more brutal than the last one. We cannot print ourselves out of this one, we are over leveraged to an extreme level. We have nothing behind our currency but ink. Our MFG, technology and innovations have all been off shored…….we are a shell of our former selves.

    China, long looked to in hope it would pull the world economy into some growth though the long lasting malaise we’ve suffered since 2008 clearly shows it cannot. Their market dropped 20% last week, margin calls are at a record, and people allowing their stocks to be sold off are also at record highs. The government plans to invest 20B Yuen into their stock market next week. I don’t know if they are suffering rising mortgage rates, too. If they are, it explains plenty to me.

    Here in the US, margin calls also at record highs; mortgage rates are climbing ruthlessly. The FED may keep their rates unfairly low for the greedy gut bankers, but the rest of us are paying; many finding it harder to keep up…..Our so-called real estate recovery is lopsided. Cheaper homes, affordable for the median income are rare, and when they come on the market, the rush for them drives up the prices. Add in the rising interest rates, they become less affordable for most people.

    On the other hand, upper priced homes are a glut on the market. There are so many luxury homes available…..but the prices and mortgage rates let them set month after month. The myth that upper priced homes would always have a market is dead……

    From the beginning of this century until recently, mortgage rates were 1-2% for those with good credit if one took out an ARM. Fixed rates were more 4% or so. Now, ARM jumbos (many luxury homes have them) are heading to 7%, Fixed rates for perfect credit are over 5%……ARM holders cannot access refinancing to fixed rates. As a result, thousands of mortgage holders are on the edge of losing their homes…….Nothing was done to fix the problems from 2002 or 2008.

    Meanwhile, our currency is dropping in value at an alarming rate. Food, water & other product prices are skyrocketing along with homes, vehicles, medical care……just name it. Our dollar is losing all value regardless of how the moneychangers insist on our strong dollar…….

    So, if the greedy guts are cornering the precious metals market, they see the same thing I do…..another crash. Greece simply gave this sick, unsustainable debt generated market a slight push, that is all it took. Regardless of the referendum outcome, the losses from Greece’s default are still real, the money is gone & it was in the Billions. The IMF has a lot of very concerned investors who have lost money and very concerned about IMF’s stability and credibility. These losses are just the beginning.

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