1994-04-18 - Re: Laundering money through commodity futures

Header Data

From: “Perry E. Metzger” <perry@snark.imsi.com>
To: tim werner <werner@mc.ab.com>
Message Hash: 7649bdeda644425e24c7123c836e21063e74aaf6e1f8e5f6a917c6fce78fd40a
Message ID: <9404181401.AA03320@snark.imsi.com>
Reply To: <199404181312.JAA12251@sparcserver.mc.ab.com>
UTC Datetime: 1994-04-18 14:06:03 UTC
Raw Date: Mon, 18 Apr 94 07:06:03 PDT

Raw message

From: "Perry E. Metzger" <perry@snark.imsi.com>
Date: Mon, 18 Apr 94 07:06:03 PDT
To: tim werner <werner@mc.ab.com>
Subject: Re: Laundering money through commodity futures
In-Reply-To: <199404181312.JAA12251@sparcserver.mc.ab.com>
Message-ID: <9404181401.AA03320@snark.imsi.com>
MIME-Version: 1.0
Content-Type: text/plain

tim werner says:
> I believe Eric's point was a little off, anyway.  The bank at Monte Carlo
> was broken using exactly the method which he was attempting to discredit.
> A man went to the casino with several suitcases full of money and proceeded
> to play roulette using the progressive betting strategy.  Eventually he
> broke the bank.  That's when casinos started imposing house limits on the
> tables.  I don't think this story is apocryphal.

In that case, please provide the time, place, and location -- also
provide references to original sources so that we can look it up

Anyone who believes martingales work is invited to try simulating them
by computer. You will find that they aren't effective.

> I don't think the commodity exchanges have the same sort of limits set up.

You don't know anything about the commodities market, then. There are
limits on how large a contract position you can hold, and they are
there specifically to prevent attempts at market corners.