Stockholm Syndrome and precious metals price discovery

Stockholm syndrome can be seen as a form of traumatic bonding, which does not necessarily require a hostage scenario, but which describes “strong emotional ties that develop between two persons where one person intermittently harasses, beats, threatens, abuses or intimidates the other.”

Targeting JPMorgan

The financial mainstream media has an ongoing love affair with JPMorgan and Chase. Many point to the near perfect trading record of the investment banks without considering how it was accomplished.

According to critics, JPMorgan is being deliberately targeted due to CEO Jamie Dimon’s critique of the Obama administration’s economic policies before the 2012 election.

It’s the latest in bad news for JPMorgan, which agreed to pay a record-breaking $5.1 billion to the Federal Housing Finance Authority (FHFA) last week over toxic mortgage securities sold before the financial crisis. An additional $9 billion settlement over the same securities is in the works with the Department of Justice. This situation puts the bank on the hook for an astounding $14.1 billion in penalties.

But although JPMorgan has been relentlessly targeted by federal investigators, its behavior isn’t much different from other American megabanks including Goldman Sachs, which was largely spared by regulators. They are now at the center of a dizzying array of financial fraud prosecutions and have set aside the equivalent of the entire silver market in legal budget.

The Big Silver Short

As identified by Ted Butler years ago, JPMorgan inherited the very profitable and illegal silver corner when it took over Bear Sterns in the aftermath of the 2008 financial crisis. If any one issue reveals the likelihood that this is indeed a politically motivated witch hunt, this would be it.

Read More: www.resourceinvestor.com/2013/11/12/stockholm-syndrome-and-precious-metals-price-disco