The inventor of the virtual specialist technology / prediction markets and the Hollywood Stock Exchange, Max Keiser, along with Zero Hedge and other investors like Eric Sprott are leading a campaign to “Crash JP Morgan Chase.” The theory is if 100 million people purchase one piece of silver at about $30 an ounce this will cause JPM to default on its naked short sale silver contracts, an estimated $1.5 trillion liability against their market capital of $150 billion. Keiser predicts the result will be $500 silver spot price and more importantly the Death Star will crash when their stock plunges as a result of their default on their naked silver position and are forced to bankrupt.
“This campaign has 100% chance of working; it falls into the category of a self-fulfilling prophecy. As more individuals buy silver and gold, all attempts to replenish the system with more paper money will only cause the purchasing power of the silver and gold to increase – thus prompting more people to buy more. Any attempts to bail out JP Morgan would have the same effect. If the US Fed was to flood the system with bailout money for JP Morgan to cover their silver short position (as they did after the collapse of Long-Term Capital Management), more inflation will ensue and the price of silver and gold will rise more, triggering more purchases. A virtuous circle is born.” wrote Keiser in the London Guardian.