Stocks And Precious Metals Charts - The Bezzle - Panic In The NY And London Gold Markets

“In many ways the effect of the crash on embezzlement was more significant than on suicide.To the economist embezzlement is the most interesting of crimes. Alone among the various forms of larceny it has a time parameter.Weeks, months, or years may elapse between the commission of the crime and its discovery. (This is a period, incidentally, when the embezzler has his gain and the man who has been embezzled, oddly enough, feels no loss.There is a net increase in psychic wealth.)

At any given time there exists an inventory of undiscovered embezzlement in — or more precisely not in — the country’s businesses and banks. This inventory — it should perhaps be called the bezzle — amounts at any moment to many millions of dollars. It also varies in size with the business cycle.In good times people are relaxed, trusting, and money is plentiful. But even though money is plentiful, there are always many people who need more.

Under these circumstances the rate of embezzlement grows, the rate of discovery falls off, and the bezzle increases rapidly. In depression all this is reversed.Money is watched with a narrow, suspicious eye. The man who handles it is assumed to be dishonest until he proves himself otherwise.Audits are penetrating and meticulous. Commercial morality is enormously improved.The bezzle shrinks." - John Kenneth Galbraith, The Great Crash of 1929

Today was a major option expiration for the precious metals April contracts on the Comex.

Gold and silver were hit back to unchanged in the afternoon trade in NY.

The discrepancy between 'spot' quotes and the front-month April futures quote for gold continues.

The Dollar continued its decline.

Stocks soared, with the SP 500 and the NDX gaining back even more ground off of their lows.

Please take care of yourselves, and follow the guidelines from the CDC as best you can.

I do not think it has ever been more clear for us than now.

Have a pleasant evening.

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