The way this guy writes does not inspire confidence, he doesn’t seem to know what he’s talking about. He’s made a pretty big speculative leap about a large short position and then goes on to suggest that BoA would go under if they lost a few billion dollars (they have hundreds of billions in cash).
Nothing to see here unless you’re a conspiracy fan or somebody more legitimate says something.
Probably the most interesting paragraph of the article to me was:
>The seriousness of this issue is rooted in the scale of the numbers. If Bank of America is short 800 million oz of silver, as the data in the OCC report strongly suggests, then that means every dollar higher in the price of silver translated into an $800 million open (unrealized) loss. Every $10 move equates to an $8 billion loss. A hundred dollar move higher from here equates to an $80 billion loss. Can BofA fund such losses or will taxpayers be called upon to bail the bank out? Even the slightest hint of such a development should be enough to require immediate clarification from the regulators and BofA and there’s a lot more than the slightest hint in the OCC report.
It depends on how big the silver market is compared to 800 million ounces. If someone with no short exposure and lots of money starts buying it, and BofA has to cover their shorts, then something like Gamestop will happen and a major bank will blow up.
The silver market has been cornered before, in the 1980s, quite famously, in an event that moved the price by a factor of ten (order-of-magnitude).
There is a lot of silver piled up already. I hope for the sake of the taxpayers that would have to pay for BofA's mistake, that the amount of liquid silver out there is way too big for anyone to corner.
23 minutes old, 21 points, zero comments - I've been on HN for a bit now and this is the first time I've seen something pop off of new without at least a discussion starting. Seems slightly suspicious, at least to me.
At least for me it's taking a bit to fully unravel what is actually going on, and whether or not there is any validity to the claim. The linked article is fairly long, and even it doesn't have all of the context.
Seems like the whole finance industry continues to cheat until they get caught. Why wouldn’t they after that 2008 when everyone lost all their money and they got massive taxpayer dollars??
Yes. BofA has written IOUs to buyers unknown to me saying they will deliver 800M ounces of silver to them at some point in the future, where this point is determined by the buyers.
Given their lack of capability to produce this good, they have taken about $18 billion risk assuming they are able to manipulate the market with more strength than the buyers.
I cannot imagine how this level of risk is acceptable… without a massive taxpayer footed fallback plan
In Q3 2021 they had profits of about 8 billion... This is not a big deal and it's unlikely they'd lose everything. Certainly poses little to no systemic risk.