|
|
I’ve listened
to and read Don Coxe of BMO from time to time, but his weekly conference call
today was simply astounding in how well it pulled together various political,
financial, monetary and economic factors in explaining the current market
action. In this call, Don Coxe makes the claim (one that he has seemingly
become more and more vocal about) that commodities were taken down in an
engineered effort led by Bernanke and Paulson while at the same time the
financials were being propped up. While I don’t believe in complicated/convoluted
stories or far-reaching conspiracy theories, I know that markets are
manipulated from time to time. For those who believe the markets are free and
unfettered all the time, Mr. Coxe provides a very convincing counterargument.
I must say that after
listening to Mr. Coxe’s reasoning and logic, I am much less certain
that the recent massive short position of the 2 or 3 U.S. Banks in COMEX gold
and silver, as revealed by the August 5, 2008 Bank Participation Report
issued by the CFTC, is simply an innocent transfer of positions between
dealers and banks. I still don’t believe the positions themselves
necessarily caused the decline (the alleged put options in airline
stocks purchased before 9/11 did not cause the terrorist attacks, either) but
the idea that the U.S. Banks knew about a planned market manipulation,
whether because of their privileged access to the upper echelons of
government and central banking or their extensive “research
capacity”, is now quite plausible to me.
Mr. Coxe makes a number
of other insightful comments about the markets in this call and I urge
everyone to listen to it. Also, I think it would be a fantastic idea to
transcribe this call (assuming it hasn’t already been done). If anybody
has an interest in doing so, I will trade a free subscription for an accurate
written transcription. Just contact me first to make sure you are not
duplicating somebody else’s efforts.
Thanks to LJ and RB
RK for bring this jaw-dropping call by Don Coxe to our attention.
Oh, I almost forgot the
link to the conference call. Actually, I’m not going to post a link
because that could result in it being taken down (it is meant for BMO clients
only), but if you do a Google search on “Don Coxe weekly” it
should not be very hard to find.
Tom Szabo
Silveraxis.com
Tom Szabo was born in Hungary
during the Communist era and escaped to the West with his family, eventually
settling in California. After graduating from the University of California at Berkeley with a Bachelor’s Degree in Business Administration, he spent 8
years as a financial statement auditor with Deloitte & Touche, focusing
on financial institutions. He has co-founded several
precious metal related businesses and investment funds, invests for his own
account and runs the website at www.silveraxis.com. His specialty is
original, controversial, unpopular and contrarian thinking.
| |
