stock market crash

[LondonManc]

Deutsche is exposed in the derivatives market many times their capital.

HSBC is at risk of collapsing. If they do, there goes the paper Gold ETF's, the majority of where paper gold funds rest.

Still not presenting any evidence for the impending collapse of HSBC are you?

[Highland]

Still not presenting any evidence for the impending collapse of HSBC are you?

Oi, get in the queue. This fella was meant to be explaining his thesis on the imminent nationalisation of BP a few days back.

They are/were also on the "brink of collapse".

[scooterscot]

Still not presenting any evidence for the impending collapse of HSBC are you?

Still not demonstrating the ability to read are you?

What was said: "HSBC is at risk of collapsing."

[clearedforlanding]

Still not demonstrating the ability to read are you?

What was said: "HSBC is at risk of collapsing."

Scoots! Have missed ya! Go grab a Doppelbock and lets start shorting.

[scooterscot]

Oi, get in the queue. This fella was meant to be explaining his thesis on the imminent nationalisation of BP a few days back.

They are/were also on the "brink of collapse".

You know I called the stock market crash 2 year ago and here you still denying the rising tide.

When I bull on the market you'll probably go full bear.

[Highland]

You know I called the stock market crash 2 year ago and here you still denying the rising tide.

When I bull on the market you'll probably go full bear.

Ah, hubris. My favourite. I bought RDSB at £10 when you were proclaiming everything was going bust. Funny old game eh?

[scooterscot]

HSBC does not have the gold to back up the ETF... the largest the world... this should be common knowledge. Much like many banks do not have the deposits to back up peoples accounts. Even the Bank of England would have to go on a mass money printing spree to honour collapsed banks.

Now what happens when a gold ETF collapses? You can't print Gold. HSBC would be history in this scenario.

Let’s analyse the operations of the world’s largest gold ETF—the SPDR Gold Trust (GLD). To gain exposure to the price of gold, investors buy GLD shares through an Authorized Participant. An Authorized Participant is usually a large financial institution, like a market maker, which is responsible for obtaining the underlying assets necessary to create ETF shares.

When they do so, they are buying shares in the funds trustee—the SPDR Gold Trust. The trustee then uses a custodian, in this case HSBC, to source and store the gold for them. As the custodian is tasked with sourcing and storing the gold on behalf of the trustee, they are a major counterparty.


Herein lies the first problem. Many investors buy gold as portfolio insurance against a systemic failure in the financial system. As GLD is intertwined with one of the world’s largest banks, it doesn’t fit this purpose. If HSBC became impaired, GLD shares could be negatively impacted.


But the problems go deeper. Custodians like HSBC use sub-custodians, such as the Bank of England, to source and store gold. So, in addition to carrying custodian risk, investors also have sub-custodian risk.


Sounds like a lot of counterparty risk. But there has to be rules in place to protect investors if something goes awry—right?

[scooterscot]

Ah, hubris. My favourite. I bought RDSB at £10 when you were proclaiming everything was going bust. Funny old game eh?

Thread started in February 2018 - You paid 10 when it was trading at 2500? Impressive - seriously, who is your broker?

[Highland]

Thread started in February 2018 - You paid £10 when it was trading at £2500? Impressive - seriously, who is your broker?

1) You know GBX is pence....... right?
2) I'm talking about when all equities were going but a few days ago.. Remember, you were investing in commodities as equities were a joke, by buying Glencore equities.

Sweet god.

[scooterscot]

HSBC bankrupt and on the brink of collapse?

Concerns about an imminent bank crash were further fuelled today at news that HSBC are restricting the amount of cash that customers can withdraw from their own bank accounts. Customers were told that without proof of the intended use of their own money, HSBC would refuse to release it. This, and other worrying signs point to a possible financial crash in the near future.

HSBC is scrambling to manage a seemingly terminal liquidity crisis (a lack of hard cash) that could see the bank become the next Northern Rock – and trigger a bank crash. The analyst’s advice is for shareholders to sell HSBC investments, and customers to move their accounts elsewhere before the crash.

HSBC warns of restructuring pain ahead as outlook darkens