Stocks went down hard led by the banks. Gold was hit very hard by a bear raid sell off down to 1620, while silver maintained some strength.
The stock market rebounded into the close somewhat as did gold. Silver has not confirmed the breakdown by gold out of its symmetrical triangle.
Why is gold going lower, but silver, the metal with a higher industrial component, is proving stubborn? Perhaps it is because the Central Banks don't have any.
"Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise."
Alan Greenspan, Congressional Testimony on Regulation of OTC Derivatives, 24 July 1998
The bulls have their work cut out for them.
The MF Global scandal continues to rot and sicken. After the bell the testimony from CME Chairman Duffy to the Senate indicated that Jon Corzine was perjuring himself when he said he had no knowledge of the customer money transfers. Duffy testified that on Saturday lawyers notified him by phone and email that Corzine knew of the transfers of customer funds and that at all times the people doing the transfers were under the authority of MF Global management
Perhaps now would be a good time for Jonny to cut a deal and throw someone else under the bus and not 'take one for the team.'
As noted intraday, JPM and the Trustee are divvying up the MF Global cash account amongst themselves. The Trustee hopes to pay back the customers out of the company assets 'if possible.'
MF Global is more of a crime scene than a simple bankruptcy. What puzzles me is how MF Global was able to transfer all these customers funds and assets without records in the banking system? What happened to all those anti-money-laundering rules on fund transfers? Are they just for the 'little people' too?
And why is the Trustee Giddens, a private attorney whose firm has long ties to the bank, seem to be calling the shots on the investigation of JPM and their involvement?
And is the judge in the bankruptcy really one of the lawyers for the banks in the Martin Armstrong case?
The interests of the customers seem largely under-represented. Where is the CFTC and the Justice Department in all this again?
If Jon Corleone does cut a deal, and then disappears like the missing billion, will Max Keiser put up a documentary titled Where's Jonny for funding?
