Congratulations Silver Warriors (That’s Called Sarcasm)

Note: I have nothing against silver. What I’m against is mass mis-information in the silver community, and those novices who base their trades based on faulty information fed to them by others who themselves don’t even have a clue what they are talking about.  It’s sad. It’s tragic.

Now, on to the topic.  Remember how buying silver was supposed to bankrupt JP Morgan?   You’d stick it right in Blythe’s PnL and show her that The People had spoken? Well, smashing job, folks (via WSJ):

“J.P. Morgan has emerged as one of the biggest beneficiaries of the commodities boom sweeping Wall Street. The bank’s commodities unit—which employs about 1,800 people, more than any of its rivals—made more money during the first quarter than through all of last year, according to people familiar with the matter. So far this year, the unit has earned roughly $750 million and is on course to beat its 2011 internal target of $1.2 billion, these people added. The J.P. Morgan unit earned just $514 million for all of 2010, falling far short of its goals.”

You sure showed them!  Oh – the article even mentions Blythe:

“The revenue jump takes some heat off J.P. Morgan’s embattled head of commodities, Blythe Masters, who went before the board last fall to explain why her group had fallen short of its goals and assured employees she still had the support of her superiors; her boss, Jes Staley, who runs the investment bank, had indicated he would re-evaluate the business this year if revenue dipped below $1 billion, according to a person familiar with the matter”

Bravo.  You not only helped pump JP Morgan full of record profits in their commodities division, you also may have saved Blythe Masters’s job.  VICTORY! (I know that sometimes, on the internet, it’s not obvious – but that was MORE SARCASM)

What’s hilarious is that the people (myself included) who tried to tell you that you have been trading off a bad thesis – the thesis that you can buy silver and bankrupt JP Morgan – were labeled “banker shills” and “JP Morgan employees.”  or “Brainwashed idiots.”  In reality, perhaps it was those who were feeding you bad information who were the shills – even unaware shills – eagerly misinterpreting information fed to them by Those Who Are In Control.  Brian O’Flanagan tried to explain this months ago, and fell on deaf or unwilling ears, not surprisingly.

I can imagine the Silver Mafia reading about JP Morgan’s record commodities profits, and reacting like Austin Powers in this clip:

Or maybe it’s more like this classic:


Yet the hysteria never stops…  This is perhaps one of the greatest case studies in confirmation bias that man has ever seen.  But seriously – what do you expect – that I can have a rational conversation about silver EFPs with the kind of people who bury PVC pipes filled with silver in their yards?  It’s impossible.  Sisyphus wouldn’t trade places to take the job of trying to keep up with debunking and explaining the reality behind the endless stream of nonsense coming out of the Silver Mafia.

related: So you still think JPM is short billions of ounces of silver?

related:  Bron Suchecki: “Lies Leave Traces Behind


disclosures: I have no positions in JPM or silver

postscript:  The main problem with trading off a bad base thesis, since I’m sure some folks will miss the point and leave snarky comments, is that if your thesis is bad, you can’t possibly know when to SELL, which is just as important as when to BUY.

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