The death cross: JPM’s stock price poised to cross below price of silver.

As we’ve been saying for two years. JPM uses it’s own stock to collateralize naked silver short positions (echoes of Lehman and Enron). My analysis has concluded that liability from a rising silver price vs. loss of collateral value of the stock renders JPM’s balance sheet null and void when JPM’s stock price drops below the price of Silver. We’ve only seen this a couple of times since I made this call two years ago, BUT NEVER ON A SUSTAINED BASIS of more than a day or so. When the price of Silver popped over JPM’s stock price, the London desk quickly fabricated a few billion fresh naked silver shorts to tamp silver’s price down. Given this week’s revelations regarding JPM’s reckless balance sheet incineration the ‘crash jp morgan, buy silver’ trade has never been more important as a way to take down this financial terrorist. The SLA has been winning battles all along. Now we are poised to win the war as well. Bye-bye Jamie. NOTE TO HEDGE FUNDS: Sell JPM’s stock naked to Hell. This is the easiest money you’ll make this year.

The JPM losses are the whiff of a significant deflationary force in play. JPM losses as a wise PM told me – $2 billion why not $20 billion. Is this bad risk management? This loss happened in the risk mitigation unit and not a risk taking one. There have been dislocations in the credit market these last few months and now we know why.

Is it that the derivatives risk is becoming more and more centered with a few banks, and collateral is just not forthcoming because the collateral has been promised many times over? As we move towards central clearing of these contracts will we see legal reconstitution of said contracts to obfuscate the reality that they are worthless. They are being exposed for the sticks of dynamite, under the foundations of the financial system, that they are.


30 comments on “The death cross: JPM’s stock price poised to cross below price of silver.
  1. @Max,


  2. laurie says:

    Diamonds are forever. Dimon is not.

  3. Youri Carma says:

    Some Must hear’s:

    – Santelli On CDS Regulation And Why Bank Analysts Failed

    – To Jim Grant The World Of Finance Is Nothing But The “Truman Show”

    And Now For Something Special: “The J.P.Morgan Guide To Credit Derivatives” By Blythe Masters

    Is JPM Staring At Another $3 Billion Loss?

  4. AG Hoarder says:

    JPM lists at 37.19, silver pushed down to 28.91 so far, a ways to go before JPM drops below silver. ETA?

  5. flicks says:

    Brooksley Born was the one shafted by Greenspan, Summers and Co

    F.Beard – today I been working on the Chinese girl (upper left) in that painting I posted a year or so ago from the series: fucked over by a fucking banker. You made me think about it, a lot. I’ve stopped putting my stuff up otherwise would post it.

    Good luck with the show Max and Stacy, it’s a great day to remember.

  6. MirrorMirror says:

    Facebook Gründer gibt US-Staatsbürgerschaft ab

    Facebook Founder gives up US Nationality

    They don’t know the new country … yet .
    … Speculates that he might have done this to avoid a visit from the *** after the IPO ! 😆

  7. Rick says:

    JPM sucks, scum bags.

  8. I took 16 more oz off the market today. Hopefully a bunch of other people did too.

  9. JonnyJames says:

    “NOTE TO HEDGE FUNDS: Sell JPM’s stock naked to Hell!”
    The irony is not lost here. Live by the sword, die by the sword.
    This will force a bailouts, Fed interventions and political dynamite in an election year.
    The moment we have been waiting for next week?

  10. SilverPorno says:

    “BUT NEVER ON A SUSTAINED BASIS of more than a day or so.”

    Huh? Didn’t it go above their stock price for a few weeks on a couple of occasions last year? It was a lot longer than a day or so… a lot longer as I recall. JPM didn’t crash then.

  11. SilverPorno says:

    PS Don’t doubt that they’re going down soon,though… 😉

  12. Youri Carma says:

    America is gone!

    Cop Kicks Pregnant Woman In The Stomach; Superiors Approve

  13. dave says:

    You hear about money being lost my these institutions but never hear who ended up with it. It just didn’t disappear into thin air.

  14. SilverPorno says:

    JPMorgan shares dive after $2bn trading loss

    “Mary Schapiro, the head of the US market regulator the Securities and Exchange Commission, said that “all the regulators are focused on this”.

    But she did not give any more details about possible action by her agency.”

    What she means is “there will be no possible action by her agency”

  15. SilverPorno says:

    “We will admit it, we will learn from it, we will fix it, and we will move on,” Mr Dimon said.

    Yeah, move on to the gallows.

  16. JonnyJames says:

    That scumbag is probably going to get UK or Israeli citizenship. Or is he a citizen of Singapore?

  17. Youri Carma says:

    Gerald Celente – The Jeff Rense Show – 10 May 2012

  18. Youri Carma says:

    Fukushima: ‘I see you and we know what you’ve done’

  19. Youri Carma says:

    JPMorgan Trading Loss Own Words


  20. Youri Carma, what is that in your avatar?

  21. larry says:

    got my silver on sale …yea baby !

  22. Robbie777 says:

    Ever get Ben Davies on the show, Max? Come to think of it, its been a while since we heard from Ned Naylor Leland, I guess he isbusyin China right now.

  23. F. Beard says:

    today I been working on the Chinese girl (upper left) in that painting I posted a year flicks

    I forget what I said. I vaguely recall her face was not as lifelike as the others.

    But I’m no art critic.

  24. Bullionaire says:

    “…when JPM’s stock price drops below the price of Silver. We’ve only seen this a couple of times since I made this call two years ago, BUT NEVER ON A SUSTAINED BASIS of more than a day or so.”

    This is not true – JPM:SILVER was negative for 53 days last year, from 8/2 to 9/23/11.

    Keep stacking!

  25. SilverPorno says:


    Thanks, I pointed that out too, when this post first went up, but didn’t have a figure.

    @Max – you’re wrong.

    JPM didn’t crash after FIFTY THREE days of it’s share price being below silver. How do you explain this?

  26. It takes a pillage says:

    So it is my right to know what I am eating when I have no idea what real food is?

    So it is my right to understand fluoride in water is better than no fluoride in water?

    Just like it is my right to interest on my savings RISK FREE at the cost of someone else?!

    So explain how Silver is not essentially you demanding the same as the plutocratic kleptokrauts?

    Silver to me means no more interest sucking naggin slaves who demand a free lunch.

    Wanna EXPECT your food to be safe with no effort in regards to this understanding besides a label… how is this different than putting money into a bank that is insured?

    Some day an adult will enter your life and your true baby colors will shine!!!  

    The sound of babies crying will spark some of the best music ever at least.

  27. It takes a pillage says:

    Oh and working from Max’s perspective on crashing the biggest US bank – if it were to succeed are you gonna expect the Gubermint to throw you a parade for rewarding yourself to the spoils of the destruction of American wealth and TPTB will praise those whom they have no power over or do you think TPTB will make laws so the Liberty I seek will be eliminated?

    Is Silver a weapon or is Silver a vote to you?

    The focus on Price and Value without consideration of Cost is the reason this opportunity exists. Are you so much a slave to the same focus of Price and Value of money that you are willing to make the Cost someone else’s burden – or will you be an adult?

    Where focus goes energy flows.

  28. AntiEussr says:

    Sees those charts on the right of this page.Huh? Buy,buy,buy!

  29. Keehotee says:

    @AG Hoarder – reality is irrelevant around here

  30. Danny Cunnington says:

    I’ve noticed that the JPM common stock price has been behind the silver (COMEX paper) price before and nothing happened. IMHO: I think they were swimming naked. If nobody called them on it it’s just like a polka player bluffing with a hand.

    Such bluff worked in the past but it’s increasingly more difficult to do as a “show me” attitude takes over due to eroding trust. I’m just glad that there are silver coin sellers who are willing to sell real silver based on the fantasy COMEX price.

    People are conditioned to follow price trends when it comes to assets and commodities. The real deal is to seek value. In a crash, everything reverts to value. Silver at at 50:1 ratio against gold in a no brainer.

    Look at history. Silver was money, gold was collateral. People didn’t buy consumable goods with a non-consumable unit of worth. They used it as a guarantee against default in contract and hopefully never had to part with it, Silver was used as a trading medium. The ratio will eventually go back to between 10 and 20 to one.

    If you think physical gold is going to crash to around $600 an ounce then don’t buy silver at sub thirty prices.

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