Gold & Silver Slammed At Comex Open Just Like in 2008: Something Bad Is Coming. Some Type of Systemic Disaster
- Gold & Silver Slammed At Comex Open Just Like in 2008: Something Bad Is Coming. Some Type of Systemic Disaster
by Dave Kranzler, http://investmentresearchdynamics.com/
This is starting to smell a lot like 2008. By nearly all private sector reported economic data series, the economy is starting to tank hard. Just today the employment component index of the NY ISM manufacturing report plunged at its fastest pace in history and hit a 7-yr low. A bevy of private sector reports yesterday showed similar trends. Most notably construction spending fell in August – vs. a .7% gain expected. It was the second month in row construction spending declined after a big downward revision pushed July into a decline vs. June. Construction spending is now contracting for the first time in 5 years.
But there’s an even bigger problem to throw in the mix. It’s called “Deutshce Bank.” Despite inexorable pleas to the market by CEO, John Cryan, DB is exhibiting ALL of the characteristics displayed by Lehman in the months leading up to Lehman’s collapse. If DB were forced to undergo an independent – and by independent I mean non-Central Bank, impartial outside third party – audit and a bona fide mark to market of its off-balance sheet “assets,” the bank would be catastrophically insolvent. As it is now, the stock market values DB stock at just 26% of DB’s stated “book value.” It’s true book value is likely negative by at least few $100 billion.
Just for the record, I did “back-of-the-envelope” mark to market analysis on the balance sheets of Lehman, JP Morgan, Washington Mutual and Wells Fargo at the beginning of 2008. This was before I had a blog but I had shared my work with Bill “Midas” Murphy’s Le Metropole Cafe. My work showed that each one of those banks were hopelessly insolvent if accurate mark-to-market accounting would have been enforced on those banks by the regulators. Wash Mutual and Lehman collapsed that year. JP Morgan and Wells Fargo also would have collapsed if the Government had not ripped over $800 billion away from taxpayers and gave it to the big Wall Street banks plus Warren Buffet’s bank.
Deutsche Bank is at least as underwater as each of those banks – and probably more underwater than Lehman and Wash Mutual combined. If the western Central Banks can’t find all of the hidden skeletons in DB’s derivatives closet and clandestinely monetize them, DB will collapse.
Gold is being taken down just like it was in 2008 ahead of some type of systemic disaster coming at us. Gold hit $1020 in March 2008 just as Bear Stearns was collapsing. It was taken down even more during the summer, ahead of Lehman’s collapse. These events should have pushed gold over $2000 back then. Gold eventually almost did hit $2000 by late 2011. The same price management effort is being implemented now and the elitists will do their best to keep gold from broadcasting a loud warning signal to the markets that something is wrong.
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