This one is a bit more complex.
You'd have to be a "Gold Bug" to have picked it up.
It has been percolating from site to site for the past week or so.
Simply put, people who think that they have acquired Gold that is being stored within some depositary somewhere have rather purchased only a promise of Gold to be paid upon demand, or have purchased a promise to pay in cash upon demand the value of some amount of Gold.
You think you own Gold, but you don't.
This time it's mostly J.P. Morgan.
But Scotia shows up.
And of course, the ubiquitous Goldman Sachs.
The following are some of the more notable quotes, each will link to the story from which it was obtained.
"Ponzimonium" a word coined by CFTC Commisioner (Commodity Futures Trading Commision) Bart Chilton makes a nice title, and since Nathan Lewis has already grabbed it, I'll quote his story first.
Goldman Sachs has just been charged with fraud for failing to advise customers to whom they were selling a particular investment that the firm had been paid by the John Paulson Fund to engineer the investment in a way that made it likely to go down in price.
Sorry about the way long post, I couldn't figure a way to shorten it.