Silver Down 12%, Big Default Rumored at Comex

05-02-2011 • NakedCapitalism.com/

Silver in particular has been closely watched due to the presence of very large short interests which were apparently partially closed out late last week leading to some very serious intraday volatility. Today we have this cheery development, courtesy Jesse: Now this wild ride might not be newsworthy in and of itself, but it is also accompanied by rumors of Serious Pain, presumably at JP Morgan, which quite a few market participants think has been on the wrong side of this trade: The Comex is facing a default, and the powers that be are very nervous since it involves at least one of the TBTF monstrosities. Shock and awe in the thin Sunday night trade, running the stops of the new futures holders whose options were filled. Even more heavy handed and blatant than usual.