I thought I might write a few things about the market and precious metals and rules and regulations.
The market went North today and gained a bunch. The media is going to tell you that it is coming back and people are gaining confidence and blah, blah, blah. Bullshit.
The market probably rose for the express purpose of short sellers, especially naked short sellers, making up their margin calls. You place a naked short sale of stock on the market and you are in essence selling something you don't have and you don't even have a promise of having. You just walk bold as brass up the phone and sell your thousand shares or ten thousand share of whatever floats your boat, as a short sale. Now a short sale is a sale of borrowed stock. You acquire it for a fee, sell it at the market price and wait for the price to go down. If it goes down then you buy the proper amount of shares back with some of the money you made from selling the original shares to begin with and return the shares to the lender. The left over money is what we call profit and the short seller gets to keep that. See, you borrow $100 stock and hold it for a couple days and it goes to $80 and you have made $20, after you purchase a share of stock to replace the one you borrowed. This is much like what happened on 9-10-2001 with airline stock, but that is another story. But someone made a bundle that day!
Getting back to the naked short sales, when you sell and don't have the stock borrowed, the Security and Exchange Commission, commonly referred to as the SEC, made doing that shit illegal again, which it was anyhow but we had the wink, wink, nod, nod, thing going and it was being over looked and nobody was getting into any trouble for it. Honor among thieves you know. But Wednesday the SEC dropped the hammer and said that was all of the naked short selling and things had to be made up immediately if not sooner. Failure to do so would result in time served. Ouch! So all of these crooked ass brokers were in the market trying to buy stocks today to make up their naked shorts, which were a tremendous amount of money. And things got a little tight, because there ain't anyone that HAS TO SELL YOU THE FUCKING STOCK! In fact, they can hold you up like an armed robber and there ain't much you can do about it. "Oh Dad, poor, Dad. Momma's hung you in the closet and I'm feeling so sad." The naked short guys had their sex organs in the wringer and they were not going to get out unscathed. They had to buy or serve time. La te da.
So, the market was being hit with buyers today looking to make up for an enormous volume of naked short sales. And the market has a ball. Those naked short guys have been paying through the nose all day! Several hundred guys out on the trading floor playing SMEAR THE QUEER. And the market went up $400 or so today. Wonder how it did that? Hah! And you are going to hear about investor confidence and all kinds of Mickey Mouse shit. But it ain't true. It was a bunch of guys who did not want to dance with Bubba at Attica, was what it was. A man will pay a lot of money to keep his ass from belonging to someone else. And wearing that lipstick and miniskirt in the cell gets to be such a drag. Pun intended.
On the Silver and Gold front we have some interesting news. BY LAW, the U.S. Mint has to stamp out as much silver and gold coinage as anyone wants to buy. And they quit late last week or early this week because the said they couldn't buy any 'rounds'. No rounds, no coins. And that is a bunch of horseshit, but who can go in and examine the vaults? I know, I know, we are the taxpayers and we OWN the Gold and Silver but we ain't allowed to look because of NATIONAL SECURITY or what ever the excuse is that particular day.
So anyhow, Ol' Hugo Chavez has said HE will mint gold coins for the US market and sell them all they want. And he took in 15 tons of gold to start his mint operation. Whoa! All of a sudden the fedgov cannot force people to stay in dollars! Venezuela will sell them Gold and Silver. So you can go the the stock window or the withdraw window and get your FRN's and Hugo will sell you Gold and Silver. Laughing my ass off! This is a riot!
And to make matters highly interesting, just 3 seconds before the market closed, someone dumped a bunch of Gold and Silver on the market very cheaply. So the price officially went down for the day's business. Spent most of the day in the up area and then went down at the closing bell. And the fedgov did that. That is how they got the price down from $950 to just $750 last week. Is that called manipulating the market? Ron Paul says it we have a shadow government that can do this shit without congress saying or doing a damn thing. The Constitution says all money appropriations have to start in the House and go forward from there. Apparently the Bush administration doesn't care for this mechanism and just does what it damn well pleases. Ahh. The sweet life. The head of the Federal Reserve, the Secretary of the Treasury, and Dubya have taken over the rule of this country and do as they see fit.
I'll sign off for now. You all stay alive and I'll see you when I do.