I don't think you were referring to me ES Master, but here is a post I made a few minutes ago in another thread...
The trouble with the Gold bugs is that they have been saying the same thing for decades... printing presses, deflation, panic in the streets, blah blah... they advertise on shortwave stations a lot.. The part about account raids makes sense considering all the other stuff that Wall Street does.
Here is the original article. The link the op put up has it without the sales pitches and other garbage.. http://news.goldseek.com/GoldenJackass/1221764698.php When I see the part about the account raids from a source I believe I'll get into the subject... I'm not exposed to that shit but wifey could be, she has her savings with a smaller brokerage that specializes in capital preserevation though but they could get screwed over by the legislation that is most certainly written by the PAC's paid for by the bigger guys....
Lehman Brothers went broke. ALL brokerage accounts were safe and the SIPC never had to pay out ONE cent. There were parties that took a bath because of Lehman's failure but it was NOT their individual brokerage account holders.
Regardless of whether you are for gold or not isn't the main issue here. It is the very fact that the Gov. has given these institutional banks/brokerages the power to take you assets at will. This is unprecidented and just down right crooked. Money market funds are no longer safe. I am pro Gold myself because the printing presses have just been turned on 24/7 with no relief in sight. The debt will tank this economy and collaspe the dollar to unforseen levels. That means Gold and Silver will make historical moves as fold remove their rapidly depreciating money is a true store of value. Oil, Gold and Silver will be the safe havens. Go look at the current COT, they only folks that where short in the majority on Gold and Silver, was the commercial traders, not the large specualtors or the small trader. I guarantee you they covered yesterday, hence the early shakeout and the the buying brought her back to $870. Nice tier for the catapult pass 1000oz. Dollar will collaspe, only a matter of time.Enjoy! P.S. Osirico, I have always valued your posts, so no I wasn't reffering to you.
The guys at Kitco are churning the accounts most likely. They advised my friend to buy gold at the end of July and he did... then he was in too much pain so we pulled up charts and I showed him all the signals to sell it at that point. He is studying TA even as we type..... i'm waiting to see the language from the bailout legislation
Ticketwatcher this was done right after Lehman. Many accounts are no longer safe. I am gratefull my broker(s) are healthy and not publically traded. Many accounts could be potentially as risk, hece the need to post. G'Day!
Fractal, I trade Gold very successfully. The reason the Dollar went up over the last 2 months was to help price in the massive dilution that Bernanke and Paulson knew was on the horizen. It wasn't because Europe might cut rates(they didn't), or any other reason. There was no fundamental and/or technical reason behind the move. It was just the FED artificially causing the dollar to go up, to help some, as they begin the process of diluting the dollar and making it the weakest in it's history. Now the currency does indeed face a collaspe, a catastrophic dilution in the very least. This will send Gold and Silver to historical highs. AS far as your guy buying Gold from some one else's advice? My advice is to study an instument before you buy it. The move down from $1040oz. to $750 in Gold was an artificial one as well. If you notice in the COT reports, everyone except the commercial traders(banks) where long, only banks where short. The large traders have stayed above 70% long. The very fact that you can not get Maples, Eagles, or any gold or silver coins minted this year tells you that a storm is brewing. Last Friday at a little above $750oz. was the bottom. I loaded up on the GLD $85 calls and made out like a bandit when I bought 'em at the GLD price of $75! If you notice the GLD call options lit up green all the way to $110! This is the end, many accounts might get raided that are tied to the bigger banks and the dollar will collaspe. Enjoy!
Wait are you guys stipulating that your securities which are segregated from the firm and is your property can be taken for purposes of providing liquidity to a firm? I find that hard to believe. Customer securities are considered a separate entity and not to be used for other purposes. Now if you have a margin account and your securities have been loaned out to another firm (hypothecation/re-hypothecation) And the firm in question that you have an account with fails Then you can potentially become an unsecured creditor during bankruptcy. This is why you want a Cash account (Type 1) to segregate your long term securities and keep a margin account for your trading. The reason for this is the(hypothecation/re-hypothecation) clause when you open a Type 2 account. Your securities can be loaned out even if you are not using margin and have fully paid for securities. This is one way brokers make money, they can loan out your securities without notifying you. The problem with this is if your securities are on loan and your broker goes under, you might be shit out of luck even SIPC will not protect you.