Remove Third Parties From Holding Your Assets
August 2, 2012, at 2:23 pm
Dear Jim,
Think back, do you remember Lehman Bros.? How about MF Global and more recently PFG Best? What do they all have in common? Yes, they all went bankrupt you are correct but…what they ALL had in common was "how", or more to the point HOW FAST they went bankrupt. All of these entities literally went belly up within a week’s time.
How does a firm "just go bankrupt" overnight? Easy, other firms begin to pull money out at the same time that no one will lend to them in the overnight markets. With 20 or 30 to 1 leverage, the milk spoils pretty quickly!
Now, we have Knight Capital in the exact same situation and it has been reported that they are looking for a buyer. They lost $440 million (chump change in today’s world) when their "algo" trading system "malfunctioned" 2 days ago. There is speculation as to the how’s and why’s. I don’t really care. There is speculation on the conspiratorial level that this is just another "rehypothecated vacuum cleaner" being used to force people out of their commodity contracts or to steal client money, (I hope not and feel for the customers) but this I believe is losing sight of the much MUCH bigger picture.
If these firms (along with Merrill Lynch, Countrywide Mortgage, AIG and many more back in 2008) can become insolvent within 5 trading days and close their doors, what does that say? While reading this piece, please keep in mind that financial institutions now mark their assets to whatever they please, no matter how farcical the price. I would venture to say with few exceptions, none of the firms that have gone under were considered at risk a month or two before their doors were closed.
Looking at the situation from a systemic standpoint you must ask yourself what is to stop this type of scenario from happening to the whole system overnight and not just firm by firm.
The answer is very simple – the printing presses. Central banks will create as much money as necessary, whenever necessary to prevent a systemic default. Yes I know, I sound like a broken record but this is what will happen because there are no other alternatives. Please think long and hard about this topic because your financial lives depend on it. We know that the system is over leveraged, we know that ALL the monies (currencies) are based on and backed by all of this debt, we know that governments have always responded (including the last 4 years) by debasing their currency. We know all of this yes, yet people are still depressed because their Gold and Silver is down. You can see the falsehoods everywhere and you know what the government responses have been. You also know what those responses will do to the currency and that in a collapsing currency, what it does to the precious metal’s values. Don’t let boredom, frustration or fear separate you from your insurance!
Regards,
CIGA Bill H.
Dear Bill,
I cannot understand why any reader is failing to take delivery of their certificates, their metals and there monies as getting anything back from a clearinghouse is a pure gamble on the unknown. The only reason I can see is dumbed downed laziness.
You are all involved in third parties holding your assets. This is madness and self destructive.
Audits are no good. Insurance is not funded to cover all the risk out there.
Why do you hold securities with a clearing firm? Why do you own any public gold company that will not direct register or deliver certificates for you? Why are you long paper gold and think you really own gold? How do you hold ETFs and really believe you own gold? You do not! How do you buy gold anywhere you never will see or touch.
It is raving madness that affects 9.9 out of 10 people reading this. The system is BROKEN and all the King’s men cannot put it back together again.
Your tax accounts are traps set for you. You are sitting targets that already know that your fiduciary, like all so called fiduciaries, is not worth a lead nickel because that is what your assets will be – worthless.
What can I do for you if the most simple act you need to do you continue to fail to do? Wake up, damn it!
Jim
Think back, do you remember Lehman Bros.? How about MF Global and more recently PFG Best? What do they all have in common? Yes, they all went bankrupt you are correct but…what they ALL had in common was "how", or more to the point HOW FAST they went bankrupt. All of these entities literally went belly up within a week’s time.
How does a firm "just go bankrupt" overnight? Easy, other firms begin to pull money out at the same time that no one will lend to them in the overnight markets. With 20 or 30 to 1 leverage, the milk spoils pretty quickly!
Now, we have Knight Capital in the exact same situation and it has been reported that they are looking for a buyer. They lost $440 million (chump change in today’s world) when their "algo" trading system "malfunctioned" 2 days ago. There is speculation as to the how’s and why’s. I don’t really care. There is speculation on the conspiratorial level that this is just another "rehypothecated vacuum cleaner" being used to force people out of their commodity contracts or to steal client money, (I hope not and feel for the customers) but this I believe is losing sight of the much MUCH bigger picture.
If these firms (along with Merrill Lynch, Countrywide Mortgage, AIG and many more back in 2008) can become insolvent within 5 trading days and close their doors, what does that say? While reading this piece, please keep in mind that financial institutions now mark their assets to whatever they please, no matter how farcical the price. I would venture to say with few exceptions, none of the firms that have gone under were considered at risk a month or two before their doors were closed.
Looking at the situation from a systemic standpoint you must ask yourself what is to stop this type of scenario from happening to the whole system overnight and not just firm by firm.
The answer is very simple – the printing presses. Central banks will create as much money as necessary, whenever necessary to prevent a systemic default. Yes I know, I sound like a broken record but this is what will happen because there are no other alternatives. Please think long and hard about this topic because your financial lives depend on it. We know that the system is over leveraged, we know that ALL the monies (currencies) are based on and backed by all of this debt, we know that governments have always responded (including the last 4 years) by debasing their currency. We know all of this yes, yet people are still depressed because their Gold and Silver is down. You can see the falsehoods everywhere and you know what the government responses have been. You also know what those responses will do to the currency and that in a collapsing currency, what it does to the precious metal’s values. Don’t let boredom, frustration or fear separate you from your insurance!
Regards,
CIGA Bill H.
Dear Bill,
I cannot understand why any reader is failing to take delivery of their certificates, their metals and there monies as getting anything back from a clearinghouse is a pure gamble on the unknown. The only reason I can see is dumbed downed laziness.
You are all involved in third parties holding your assets. This is madness and self destructive.
Audits are no good. Insurance is not funded to cover all the risk out there.
Why do you hold securities with a clearing firm? Why do you own any public gold company that will not direct register or deliver certificates for you? Why are you long paper gold and think you really own gold? How do you hold ETFs and really believe you own gold? You do not! How do you buy gold anywhere you never will see or touch.
It is raving madness that affects 9.9 out of 10 people reading this. The system is BROKEN and all the King’s men cannot put it back together again.
Your tax accounts are traps set for you. You are sitting targets that already know that your fiduciary, like all so called fiduciaries, is not worth a lead nickel because that is what your assets will be – worthless.
What can I do for you if the most simple act you need to do you continue to fail to do? Wake up, damn it!
Jim
6 則留言:
當年你做經紀時有冇同 d 客咁講呀？
回CP,
有 !
好多客買完股票都取實貨自己保管 !
在元朗間證券行揩咗後, 差不多 8成人都提貨, 當時做到氣咳 !
對年老客我多數叫佢地唔好買太多貨, 好唔明點解咁大年齡都 keep 咁多股票用自己名 ?
所以說過自己不是一位好經紀, 而對以前旺市風光也不會留戀 XD !
lisa
我買股票。好幾年前已經係全部射去自己的中央結算戶口。不過在香港唔興。個個信晒股票行。亦好多人怕煩
而每射一隻都要俾雙邊手續費。對於下下要經紀佣金平的。點會咁做呀
回旺旺,
我做股票經紀十一年, 得一個有錢客會射倉去中央結算戶口, 多數人會提實貨轉自己名自行保管 !
哈哈。 咁可能我係俾股票行人笑去緊既無聊小散戶
回旺旺,
射去中央結算麻煩, 還要俾手續費, 而放貨時又要射返來, 又要俾手續費, 還要等證券行收到貨先可以賣 !
只有恒生銀行(唔知其他銀行是否一樣 ?)先可以一個電話和輸入密碼, 就可以不射回貨下立刻賣出, 所以我個位客成日同我買貨之後射去中央結算, 賣時就打個電話去恒生放 !
一般人最簡單是提貨轉名, 之後收息又可以唔曬再俾人扣用費 !
張貼留言