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Okay Ann, derivatives and LIBOR

Big Al
July 16, 2012

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Discussion
18 Comments
    Jul 16, 2012 16:54 PM

    Al, thanks for having Steve on. I might add that you mentioned how stock options tied to executive pay were not derivatives and you are correct. When I was referring to options I was referring to put/call options which are derivative plays and are tied to stocks and have nothing to do with executive pay through stock options.

      Jul 16, 2012 16:59 PM

      HI Doc,

      Hope all is well with you.

      Interesting times, huh!

      Big Al

    Jul 16, 2012 16:26 PM

    Al,
    LIBOR manipulation too…. When will the manipulation of everything financial end? Please give your thoughts on the following.

    If LIBOR rates are manipulated lower than they would be in an honest market; wouldn’t that have the effect of giving the appearance of a stronger currency? Similar to our Treasuries or other debt instruments like govt bonds; the lower the rate, the higher the value of the instrument. The level of the LIBOR would tend to impact lending rates used throughout the economies of many countries including the U.S. The lower the lending rate the stronger is the perception of the currency.

    Therefore if rates were a more realistic reflection of the strength of a currency like the US dollar wouldn’t that mean the dollar would be perceived to be weaker? And therefore prec metals more expensive in dollar terms? Dosen’t this have a huge impact on the pricing of most commodities?

    Thanks for your time.

      Jul 16, 2012 16:59 PM

      Evening Rich,

      Yep!

      Big Al

    Jul 16, 2012 16:56 PM

    CNBC’S Sqawk box is saying that the breaking of the bond between the dollar and gold has created a situation where if the credit bubble “POPS”, the depression could be so severe that they don’t think our civilization could survive it. This is fear mongering by the banks who control the media. People must be very careful of how these messages are interpreted.

      Jul 17, 2012 17:23 AM

      Morning Shawn,

      The effects of a major depression would be very severe. No question about that!

      The “fear mongering” as you define it is definitely very dangerous and possibly controlled.

      I prefer to be positive as most of our “family” on this site appear to be.

      “God does help those who help themselves”.

      Best,

      Big Al

    Jul 16, 2012 16:22 PM

    Big Al:

    Please thank Steve for that information. I do like to gamble, however, I do it with pocket change and not with my Retirement Funds.

    The information help me understand the overall situation, and gave me some satisfaction in that myprevious involvement in Precious Metals was probably the thing to do.

    I also purchased some STVXF. I was considering such, but your comments several days go helped me in my decision making.

    Keep up the good work and thanks

    Dutch

      Jul 17, 2012 17:24 AM

      Morning Dutch,

      We all are helping each-other, my friend!

      Big Al

    Jul 16, 2012 16:51 PM

    The king has no cloth’s because he needs no cloth’s. The masses will sheepishly honor, follow and worship their anointed captor, even while grimacing in pain and profound astonishment at seeing the naked truth.
    Vortex, 2012

      Jul 17, 2012 17:26 AM

      Morning Vortex,

      Couple of great editorials in today WSJ. One by Andy Kessler and another by Eamonn Butler.

      Be curious as to what you think about them.

      Big Al

    Ann
    Jul 17, 2012 17:44 AM

    What an awesome segment explaining libor.

      Jul 17, 2012 17:27 AM

      Thanks much Ann.

      None of this stuff is all that complicated.

      Big Al

    Jul 17, 2012 17:22 AM

    Big Al, this was as Ann has said an awesome segment, understanding to the beginning of wisdom. Now how about a lesson explaining “adding substantial demand as well as exposing these exchange`s `Naked Short Postitions` —what harm is this doing for gold, silver to have naked short positions by large banks ?

    Jul 17, 2012 17:52 AM

    what really irks me is Bernanks comment today that he knew about LIBOR in 2008!

      Jul 17, 2012 17:24 PM

      I would guess, Bobby, that what is irking you is irking a lot of folks!

      Just gets better and better doesn’t it!

      Big Al

    Jul 17, 2012 17:55 AM

    Just in case you were wondering, YES this was under W’s watch, if its Commander in chief’s we are blaming. (sorry Al, I would not have gotten political except for you final remark on the tape)

      Jul 17, 2012 17:25 PM

      Evening Bobby,

      Never said that I totally supported President GW Bush.

      Not saying he is a bad person. Just saying that I disagreed with a lot of his agenda as I disagree with a lot of Obama’s agenda as I understand it.

      Big Al

      Big Al

    Jul 17, 2012 17:17 PM

    Libor is is also connected to lease rates on gold, thus manipulated as well.