Sum, et al

I will now refer to Goldman Sachs as Goldie Shakes after a report I received earlier today, listed below is my synopsis.

There will be a report out on May 10th called FR Y-9C.

This obscure bit of bureaucratic paperwork gives a glimpse inside the secret, back-room operations of the world’s biggest, most powerful banks…

This is something that few analysts or the public have ever been able to get their hands on.

Until recently, the giant Wall Street banks closely guarded this kind of data.

But that all changed when the largest investment banks – like Goldman Sachs and Morgan Stanley – became bank holding companies.

When they did, federal law required them to file Form FR 9-YC.

It’s like peeking inside the Holy-of-Holies of the financial world…



These banks are moving an incredible amount of money into one market sector.

The amounts were staggering. The most recent filings show:

• Morgan Stanley has approximately $1.297 trillion in this deal.
• Goldman Sachs is in for $721.9 billion.
• Bank of America is in for over $2 trillion.
• And JP Morgan is in for an additional $665 billion.

That’s approximately $4.68 trillion… That’s nearly 3 times more money than the national deficit… and twice as much as China’s total foreign reserves…

That’s more money than the entire Gross Domestic Product of Canada, India, Mexico and Australia – combined.

All being funneled directly into one area of the market. Commodities.

In its 2010 analysis, Goldman Sachs has called for gold prices to spike to $1350… and up to $1425 an ounce by 2011.

A price that should be easily attainable… considering they’re buying up gold.

According to reports from the COMEX Goldman Sachs and JP Morgan have begun taking delivery of thousands of ounces of physical gold, instead of settling their futures contracts in cash.

In August 2009, Morgan Stanley received approval to trade with Dubai Gold Securities, allowing them to take physical possession of gold.

By controlling supply of the commodities they’re trading in, they’re practically guaranteeing they’ll make billions on their holdings.

And within the next few weeks, you could be in perfect position to grab a piece of this multi-billion dollar windfall yourself.

Thanks to the market moves to be set in motion on May 10th.



And this time, I believe that the effects of this move are going to be even more wide-spread – and more rewarding for investors.

Because the three big Wall Street banks aren’t the only ones “gaming” the commodities market.

• Merrill Lynch (Bank of America) – They’re into natural gas, power, crude oil, refined products, metals, commodity indices. And over the next two years, they intend to expand their commodities team by 25% looking for major commodity profits.
• Deutsche Bank – They’re active in oil, refined products, metals, gas, power, agriculture and a presence in metals and uranium. In the last year, they’ve launched 11 new commodity indices, three new commodity mutual funds and one new commodity exchange traded fund.
• Societe Generale – With almost 400 commodity professionals, they focus on crude oil, refined oil products, natural gas, coal, base and precious metals… and they’re expect to double revenues by 2012 – thanks to commodities.
• Barclays Capital – this UK based bank is active in oil, refined products, metals, power and gas, coal… Barclays even created a shipping division called Pendle in March 2009 to support trading physical oil.
• Credit Suisse – Has a large presence in the physical market through its alliance with Swiss commodities trading house Glencore.
• Standard Chartered – Aims to start trading physical commodities in 2010.
• Macquarie – They’re active in metals, agricultural commodities, oil and natural gas.

This kind of concerted movement by the biggest players in the world, does not happen every day. In fact…

Only Four Times in History Has An Event Like This Ever Occurred… And the "Players" Got Extremely Rich

• In 1870, NY financial wizard Jim Fisk, thanks to President Ulysses S. Grant himself, attempted to corner the gold market – causing riots and panic in the streets… and netting his partner and himself a cool $11 million (or about $187 million in today’s dollars)
• In 1879, John D Rockefeller secured his place in financial history, and his fortune, by cornering the oil market when he took over 22 of the 26 oil refineries in Ohio… laying the cornerstone for Standard Oil
• In 1973, the Hunt brothers, of Texas oil fame, began buying silver… and then hauled it away to vaults in Switzerland. When they started, silver was selling for about $4 an ounce. By the time the Hunts were done buying in 1980, silver had catapulted to $50 an ounce…making them a tidy $3.5 billion in profits.
• In 2001, the Oracle of Omaha himself, Warren Buffett, tried to corner the market when he bought up 129.7 million ounces of silver… or 37% of the world's above-ground stock. And it drove silver prices up nearly 70% in six months.

And from everything I can see, the big banks are doing exactly the same thing – only they’re doing it on a monumental scale.

No shakedown, no glory. For those who got sucked out in the wave today, I bought some of your shares. I believe the tide will be turning soon for those who have held their breath.

Have a great weekend with your shares.

mynot