gold closed down by 32.10 to 851.00 and silver tumbled down to 10.49 for a loss of 1.37. Silver in the access market fell to a low of 9.50 but it recovered and closed at 10.17.
The open interest on gold climbed by a huge 12000 contracts to 333000. Silver remained constant at 99800.
The gold ETF also rose in gold inventory by over a tonne of gold. Everyone is escaping the criminal comex and the world knows it is run by thieves and is manipulated 100% of the time.
The crime at the comex will end with either the following events:
1. everyone takes delivery of gold and silver
2. a banking holiday commences.
The Group of 7 are meeting this weekend to solve the worlds financial problems.
However the international scene continues to worsen. Yesterday, we saw
The Icelandic problem spread to
This is now becoming an international problem and it must be solved this weekend. If it is not solved, markets will deteriorate rapidly as margin call after margin call brings down the global financial system.
I believe the only sensible thing to do is create a banking holiday and create a new financial system.
Regardless of the situation, the
In other economic news, the first of the credit default swap auctions were held and holders of the Lehman bond will get 8 cents on the dollars. The dollar liability will exceed 300 billion dollars. The 359 banks that sold this Collaterized Debt Swap will be on the hook for this amount of money.
Remember, that we also have to hear from Fannie and Freddie credit default swaps and from Washington Mutual. When the dust clears my bet is that we will see 3 trillion dollars of losses added to the banks, on top of the other losses.
Also AIG must pay out huge sums and yesterday AIG announced that it needed an additional 37 billion because of credit default swaps.
It looks like the losses from this arena will exceed 3 trillion dollars which must be added to the 3 trillion dollars of losses from subprime, alt a and ARMS resets. This is just from the
The losses from
The banks cannot endure such losses as their retained earnings collectively are only 900 billion.
I can see no other way but a banking holiday and restructuring.
Yesterday, the Dow was down at one point by 657 points but rallied as the plunge protection team came in and tried to rescue the market. It failed and the dow fell by 124 points. It is noteworthy that the two investment banks left, Morgan Stanley and Goldman Sachs both fell badly with Morgan Stanley falling to 9.48 and Goldman Sachs breaking the 100 dollar mark to close at 88.00
It looks like General Motors and Ford are heading for bankruptcy. This morning it was announced that General Motors and Chrysler are in talks talking about a possible merger.
Lets wait and see what happens this weekend.