Commodity Prices Set to Explode on May 10?

[georgephillip]

Peter Kruth claims that's the case based on filings of US Government Report FR Y-9C.

He also claims when the largest investment banks became bank holding companies their commodities investments became more transparent because they were now required to file the above report every quarter.

"The largest banks in the world now have over $4.68 trillion moving into one "trade."

Peter's alleging "The Biggest Bank Manipulation in Generations."

Oil and gold appear to be the targets.

I certainly don't have the education to evaluate these claims, but some of you posting regularly on this site do.

I do find Peter's oil scenario revealing: He asks how a bank like Goldman can predict crude oil prices will hit $90/barrel in the coming months?

"And how can they predict an oil shortage in 2011--expecting the price of crude to hit $110 a barrel?

"Simple. These institutions have practically guaranteed this will happen..because they're taking millions of barrels of oil off the market...at the same time they're trading it."

Does JP Morgan have a supertanker floating in the Mediterranean...and another off the coast of Europe each holding a million barrels? What about storage tanks in Alberta holding two million barrels? Additional tanks from South Korea to Denmark?

Is it true the three biggest banks control the equivalent of about half the entire reserves of Light Sweet Crude in the US Strategic Oil Reserve?

And it's not just crude oil.

 

[Jos]

Most of the trades (bets) are on paper

 

[georgephillip]

For those of us (like me) who don't understand the distinction, could you be a little more specific?

 

[Jos]

If I write 10,000 barrils of Oil on a piece of paper and sell it to you, It does not mean you now own 10,000 barrils of oil

In financial terms, a derivative is a financial instrument - or more simply, an agreement between two people or two parties - that has a value determined by the price of something else (called the underlying).[1] It is a financial contract with a value linked to the expected future price movements of the asset it is linked to - such as a share or a currency. There are many kinds of derivatives, with the most notable being swaps, futures, and options. However, since a derivative can be placed on any sort of security, the scope of all derivatives possible is near endless. Thus, the real definition of a derivative is an agreement between two parties that is contingent on a future outcome of the underlying.

A common misconception is to refer to derivatives as assets

Derivative (finance) - Wikipedia, the free encyclopedia

 

[Mr. H.]

Crude is up $2.68 in overnight trading.

INO.com Markets - CRUDE OIL (NYMEX:CL) Price Charts and Quotes for Futures, Commodities, Stocks, Equities, Foreign Exchange

 

[georgephillip]

What would have to occur in the next 30 days before you could accurately assess Krauth's claim about "The Biggest Bank Manipulation in Generations?"

Is there any way of knowing today if large investment banks are withholding millions of barrels of oil from the market?

 

[Toro]

They didn't explode today.

They just partially recovered some of their losses from the past week.

 

[georgephillip]

I noticed.

Is there any way of knowing if Krauth's allegations have any merit at this time?

If I understand his argument correctly, he's saying that because giant investment banks are now bank holding companies they have to file FR Y-9Cs within 40 days of quarter's end.

Would filing those government reports make it more difficult for banks to hide the data on their assets and trades?

Is the FR Y-9C as obscure as Krauth claims?