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And Scene: CME LOWERS ES, SP, YM Margins, Despite An INCREASE In Realized Vol

Tyler Durden's picture




 

Speechless. Just.... speechless.

 

Chadv11-188

Oh, and by the way, over the past month, realized vol in the ESM1 has... risen.

 

So aside from what is now glaring market manipulation with the collusion of the exchanges (rip silver longs), there is no manipulation.

 

 

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Tue, 05/31/2011 - 16:20 | 1326360 emsolý
emsolý's picture

Nothing can be in the way of Recovery Summer 2.0

Tue, 05/31/2011 - 17:09 | 1326592 PY-129-20
PY-129-20's picture

Remember the Summer of George?

Tue, 05/31/2011 - 16:23 | 1326382 Chasecran
Chasecran's picture

Someone needs to shoot the monkey at the dart board on this one...in the mean time, I'm going long!

Tue, 05/31/2011 - 16:24 | 1326406 camoes
camoes's picture

What happens when we get ZERO margin on ES?? Infinite S&P? Everyone playing the casino will be uber-wealthy!!! THERE IS SUCH A THING AS FREE LUNCH, TAKE THAT FRIEDMAN!

Tue, 05/31/2011 - 16:30 | 1326418 JW n FL
JW n FL's picture

if we silver plate those docs? maybe gold plate??

 

what a fucking joke!

 

1. give us your guns!

2. give us your gold and silver!

3. bend over! when Ever! we want going forward for any reason!!

Tue, 05/31/2011 - 18:23 | 1326808 Yen Cross
Yen Cross's picture

Don't beat your self up too hard.  Lets fix IT!!!!

Tue, 05/31/2011 - 16:30 | 1326424 Hondo
Hondo's picture

The regulators are corrupt......this whole thing is based on more and more leverage......when this whole thing collapses we need to find these CME bakers and show them how to eat cake!

Tue, 05/31/2011 - 17:00 | 1326539 SheepDog-One
SheepDog-One's picture

'Show the CME bankers how to eat cake' well as long as by 'cake' you mean 'Louisville Slugger', yea I'll show em how to eat one.

Tue, 05/31/2011 - 20:47 | 1327180 Long-John-Silver
Long-John-Silver's picture

I expect a huge Guillotine Party soon after the crash.

http://boisdejustice.com/Construction/Construction.html

Tue, 05/31/2011 - 16:32 | 1326430 squib
squib's picture

It's clobberin' time

Tue, 05/31/2011 - 18:53 | 1326896 HellFish
HellFish's picture

LOL.  Fantastic Four?

Tue, 05/31/2011 - 16:30 | 1326440 Smiddywesson
Smiddywesson's picture

"maybe this marks the turning point where the boys want to get short spooz as cheap as possible?"

- Scatterbrains

Ya, know, you may have something there.  They announced the elimination of the uptick rule with no fanare and no explanation.  Soonafter, the HFT traders swamped the market with super fast transactions.  Margins are suddenly lowered, and everyone assumes they were lowered to leverage on the long side.  Maybe, but if that's so, why didn't they do so in 2009?  Manipulation of margins has been a technique for hammering silver longs for a long time, particularly in 2006 and in early May, 2011.  Maybe the market crash is closer than appears, and margins were lowered for the big short?  It's not so far fetched.  I like it Scatterbrains.

Tue, 05/31/2011 - 18:10 | 1326766 Raynja
Raynja's picture

its definitly a possibilty, gives them more ammo to control the market, they make more money, and it would make U$T look better with the whole ceiling target drama

Tue, 05/31/2011 - 16:37 | 1326461 omi
omi's picture

Common, give me 1370, maybe a day or 2 if current trend continues.

Tue, 05/31/2011 - 16:41 | 1326467 the not so migh...
the not so mighty maximiza's picture

what the fuck

Tue, 05/31/2011 - 16:39 | 1326470 omi
omi's picture

Common, give me 1370, maybe a day or 2 if current trend continues.

Tue, 05/31/2011 - 16:44 | 1326483 Eric Cartman
Eric Cartman's picture

I don't find this funny, I'm pissed. 

Tue, 05/31/2011 - 17:06 | 1326564 SheepDog-One
SheepDog-One's picture

I dont find it funny at all, and what it really means is a lot of americans will soon be crying in their cat food when the fattened up pensions and 401K's are seized by the Treasury real soon. But everyones oblivious today....'all is well'...nothing can go wrong stocks are up. Theres about to be a huge ass kicking coming to the american retiree very soon.

Tue, 05/31/2011 - 19:26 | 1326997 Smiddywesson
Smiddywesson's picture

"Crying in their cat food"

Priceless, I'm going to steal that line.

Tue, 05/31/2011 - 17:03 | 1326565 Problem Is
Problem Is's picture

Easy on the <SAVE> button, Eric...

NSA surveillance always causes those delays...

Tue, 05/31/2011 - 17:15 | 1326611 Ricky Bobby
Ricky Bobby's picture

+1 If I could paraphrase the Great George Orwell.

"In a time of universal deceit - telling the truth is a  terrorist act"

Tue, 05/31/2011 - 18:22 | 1326804 Raynja
Raynja's picture
ZeroHedge, they called it. ZeroHedge was not a thing that could be concealed forever. You might dodge successfully for a while, even for years, but sooner or later they were bound to get you.
Tue, 05/31/2011 - 18:09 | 1326762 Id fight Gandhi
Id fight Gandhi's picture

I'm pissed too. They drove silver down with hike after hike till it crashed it from its highs.

Macro economy news domestically and globally is abysmal. Yet they'll still be pushing for 1500.

I'm buying physical metals, fuck the rest.

Tue, 05/31/2011 - 19:31 | 1327008 Smiddywesson
Smiddywesson's picture

Speaking of Orwell, they are hammering silver repeatedly so sheeple are conditioned that anything that goes up is dangerous.  Now what is going up as central banks load up on it?  Hmmmm?

Tue, 05/31/2011 - 19:31 | 1327013 Rynak
Rynak's picture

Actually, hikes alone could not have done to silver, what was done to it. The margins simply were the long range support fire.

If it were me, i'd welcome them to set the minimum margins at 50%.... that should be enough for almost everything ,and only require increases in crash-like conditions.

The true enemy, is not margins, but HFT and lack of position-limits or at least trade-limits per day.

Tue, 05/31/2011 - 20:00 | 1327073 Id fight Gandhi
Id fight Gandhi's picture

They're fucking with the spot price in any case. No other reason than for the elite to short it and buy it cheap.

Wed, 06/01/2011 - 04:07 | 1327775 Hephasteus
Hephasteus's picture

Yup but unfortunately they'll keep it hammered through august till they lose all control. It'll probably hit 75 easily before even pretending to go back down.

Tue, 05/31/2011 - 16:42 | 1326490 unununium
unununium's picture

I just want to know, what date are they trying to make it to?

Tue, 05/31/2011 - 16:49 | 1326508 Internet Tough Guy
Internet Tough Guy's picture

Tomorrow. Every day.

Tue, 05/31/2011 - 17:13 | 1326593 SheepDog-One
SheepDog-One's picture

Live today, to try to pump it up again another day without the wheels falling off. One of these days, the contraption WILL implode in on itself.

Tue, 05/31/2011 - 16:47 | 1326496 buzzsaw99
buzzsaw99's picture

They obviously want to lower the chance of margin calls when the SHTF, at least until their friends can get out first.

Tue, 05/31/2011 - 18:25 | 1326814 Yen Cross
Yen Cross's picture

Hi Buzz. Keep up the (not getting involved work) Love

 

    YEN CROSS!

Tue, 05/31/2011 - 16:49 | 1326504 omi
omi's picture

Common, give me 1370, maybe a day or 2 if current trend continues.

Tue, 05/31/2011 - 16:46 | 1326507 jaffi
jaffi's picture

Hmm?  I am just now coming to the realization that this whole market thing just may be a rigged game... <sarc>  

Tue, 05/31/2011 - 16:59 | 1326513 Internet Tough Guy
Internet Tough Guy's picture

Why so surprised? Hyperinflation was always the endgame. Notice the one thing they capped today was gold. Do you believe that no one was buying gold on a day like this? Complete joke.

Tue, 05/31/2011 - 17:14 | 1326607 tmosley
tmosley's picture

Oh they were buying it, just not off the COMEX, or even the spot markets.  All back room stuff that will filter out into the markets eventually, probably after a default has occurred.

Tue, 05/31/2011 - 18:35 | 1326824 bob_dabolina
bob_dabolina's picture

Did you see any of your friends on drudge today?

Tue, 05/31/2011 - 18:58 | 1326904 tmosley
tmosley's picture

What are you, retarded or something?

Tue, 05/31/2011 - 19:20 | 1326965 bob_dabolina
bob_dabolina's picture

No need to get defensive. I was just curious.

Coming around on that cure for cancer?

Tue, 05/31/2011 - 19:45 | 1327035 tmosley
tmosley's picture

The company producing the compound is dragging its ass.  We are supposed to get a tiny bit of it at the end of the week, then 20 grams a couple of weeks later.

And it is only a cure for prostate cancer, as well as a way to chemically remove the prostate.  The technology can be applied to any type of cancer, but that is labor intensive.  We are hoping that the proof of concept will get us funding to hire more scientists to get the ball rolling in a big way.  Tens of millions of dollars are needed, though.  Not easy money with our current economy.  The technology is so powerful and versatile, people seem to have trouble believing in it.  At least, until they see it incorporated into their own materials, or see samples tested in their own labs.

Tue, 05/31/2011 - 20:39 | 1327165 bob_dabolina
bob_dabolina's picture

Wow. 

Did you just say "tens of millions of dollars (fiat)" are needed? 

I knew you were a stupid paper pusher baby. 

You just admitted you NEED fiat (dollars) to advance your "research" 

tsk, tsk, silver bug.

Tue, 05/31/2011 - 22:42 | 1327432 tmosley
tmosley's picture

You really are an ignorant piece of shit.

How does I clinical trial?

Tue, 05/31/2011 - 22:58 | 1327473 bob_dabolina
bob_dabolina's picture

I'm dumb...zero intelligence. 

nvmd. 

Tue, 05/31/2011 - 23:29 | 1327536 tmosley
tmosley's picture

No, you are being a stupid aggressive little shit in order to be a stupid, aggressive little shit.

Why don't you explain to me why my thesis (that the real price of silver will rise for a variety of reasons including basic supply and demand and a COMEX default) has ANYTHING to do with the fact that clinical trials aren't paid for with silver?

You can't.  You attack just to attack.  You know nothing.  You teach nothing.  You learn NOTHING.

You are the epitome of a FOOL.

Wed, 06/01/2011 - 05:14 | 1327824 steveo
steveo's picture

Uhh, cure for cancer, and chemically remove the prostrate, and you appear to be asking for tens of millions of dollars to advance this effort?

 

Please

Tue, 05/31/2011 - 16:49 | 1326519 Barb Dwire
Barb Dwire's picture

W

T

F

 

What does it take before these mf'ers are hanging from street lamps? Honestly, the Arab world and the Europeans seem to be getting a handle on this. Burn some banks down, have a few riots and the politicians seem to suddenly become hyper aware.

Tue, 05/31/2011 - 17:00 | 1326550 SheepDog-One
SheepDog-One's picture

Yea seems corrupt politicians and banksters at least sit up and take a BIT of notice when people start setting fire to bank buildings and presenting bricks to banksters heads. Americans? Nah....just sitting and eating Fritos and dip and drinking beer in front of the TV, American Idle is on! And the 401K statement is up a bit, all is truely well!

Biggest wealth transfer coming soon with 401K and pensions being seized  by the Treasury, as per previous Zerohedge article. No one wants to believe it though.

Tue, 05/31/2011 - 19:41 | 1327029 Smiddywesson
Smiddywesson's picture

That was just a temporary shift of funds to keep the wheels rolling SDog, they told me at work. Nothing to see here, move along.

I'm sure a country that "borrowed" from social security and can't pay it back will refund my 401k

Wed, 06/01/2011 - 04:18 | 1327784 Hephasteus
Hephasteus's picture

Stock market crash = calpers from 70 percent to 30 percent funding instantly.

Tue, 05/31/2011 - 20:36 | 1327154 11b40
11b40's picture

"American Idle"...yep, 'bout sums it up.  LOL.

 

Tue, 05/31/2011 - 16:51 | 1326522 oogs66
oogs66's picture

truly amazing.  when will the exchanges get cds?

Tue, 05/31/2011 - 16:56 | 1326530 Caviar Emptor
Caviar Emptor's picture

I love it (not!): 

Prices have now fallen, on this (Case-Shiller) index, more than they did during the Great Depression. "On that occasion, the peak in prices was not regained until 19 years after they first fell," notes Paul Dales at Capital Economics.

Tue, 05/31/2011 - 16:56 | 1326538 Smiddywesson
Smiddywesson's picture

"I just want to know, what date are they trying to make it to?"

One obvious answer is the next presidential election, but to opine that the whole world is in a conspiracy to make it easier for Barry to get re-elected is utterly crazy, that's just the hopes of some of the conspirators.

The mysterious "they" are trying to hang onto what they have, and to gather more of what they want, and that thing is power.  The USD is not going anywhere while they play for time.  I think their end game is a gold standard.  In order to dig out the banks from all the debt they have, they just have to continue to slowly acquired physical gold while holding everything together.  They they let the crisis unfold until the sheep beg them to step in and devalue all the fiat currencies in the world.  That's probably why world leaders are travelling everywhere right now, doing a face to face and holding it all together.  That's why government data today is the most false ever.  That's why the media is in a complete misinformation campaign.  These people know they can't reinflate the economies of the world.  They are playing for time, time to feather their nests and come out of this with professional reputations, power, and money.  

We the public are the proverbial frog being slowly boiled so that we don't feel it.  

Tue, 05/31/2011 - 17:15 | 1326599 Crab Cake
Crab Cake's picture

Sad then, that we know their names and faces. The information age and globalism means there is nowhere to hide.

Tue, 05/31/2011 - 17:53 | 1326713 zen0
zen0's picture

In 1873 the U.S. demonetized silver (the money most people used at the time) and went on a de facto gold standard. The class who benefited the most (and were instrumental in massaging the legislation through) was the bankers. What a shocker.

Your scenario is not so far fetched.

Tue, 05/31/2011 - 19:16 | 1326970 I_ate_the_crow
I_ate_the_crow's picture

They did the same thing during the Great Depression. All the insiders got out of the stock market and bought gold and took it out of the country leading up to the crash in 1929. Thereafter gold was revalued higher. One of the loopholes in the confiscation act was that it did not apply to foreign gold. The elite then sold their gold at the higher prices, exponentially increasing their fortunes by however much of their wealth that they had transferred beforehand into gold.

This is why I constantly rail against the gold standard. People are once again being fooled into the idea that a gold standard or "freegold" will solve all of our monetary woes. On the contrary, the problem is who controls the money supply, not what standard is used. Even a silver backed currency could be debased just as the gold standard was starting in 1913.

There is only one solution to the corruption: end the Fed and return control of the money supply to Congress. Good luck getting anyone who matters to pass legislation to this effect, however, as the banksters have killed anyone who tried to get this process started.

I agree with others who speculate that the Fed will take the fall in the coming currency crisis. Our tax dollars fund the IMF as it is, and they will try and convince everyone that a global gold standard is the solution (US-EU-UK and any other cartel friendly central bank). It would be a wealth transfer that dwarfs the stolen tax dollars from the bailouts.

Tue, 05/31/2011 - 21:05 | 1327225 Smiddywesson
Smiddywesson's picture

Indeed, it's a shell game, in which they move the debasement between gold, silver, and paper.  Everyone focuses on where the pea was, but the banks make money by taking what they can from the old system, and shifting the pea to a new system.  In other words, after sucking as much profits from the old system as possible, and having that system teetering on the edge of collapse, what is there to motivate the giant squids to save the old system and instead move to a new monetary system?  It's just a shell game, a gold standard won't change anything over the long run, because a new gold standard would be bastardized as soon as it is convenient to the banks. 

Wed, 06/01/2011 - 06:34 | 1327853 Seer
Seer's picture

"a gold standard won't change anything over the long run, because a new gold standard would be bastardized as soon as it is convenient to the banks."

There are two elements to consider here:

1) A "gold standard" would be TPTB's standard, as such it automatically is bastardized;

2) Gold allows the masses to bypass banks (read "banks' powers reduced").

A concern would be that a "gold standard" would be the globalists' capture of a monetary unit.  While I'm pretty sure that this would be desirable for them, I'm just not seeing that any New World Order (thanks Bush Sr. for tipping us to this way back when) that there will be enough surplus in the future to feed a/the NWO: I assign it a lower probability that a lot of folks would- doesn't mean that I don't discount that it's being striven for, just that I figure the odds are too great that it could succeed (bad systems never succeed).

Tue, 05/31/2011 - 23:15 | 1327521 TheGoodDoctor
TheGoodDoctor's picture

Smiddy,

When reading the past few days it seems that the first date they may being trying to get to is June 30th. Not sure after that.

1. End of QEII

2. New IMF head will be selected

3. Greece will have another bailout option at that time

Tue, 05/31/2011 - 17:01 | 1326542 buzzsaw99
buzzsaw99's picture

Time to go UPRO on margin bitchez.

Tue, 05/31/2011 - 17:01 | 1326560 Gambler
Gambler's picture

Attention!

That was first decrease in margin requirements for ES,SP since March 2009!

Tue, 05/31/2011 - 17:25 | 1326644 rockraider3
rockraider3's picture

Can someone explain, in layman terms, what this means?  Basically it's just juicing the futures market and trying to bring in more speculators, right?  Any color would be appreciated.

Tue, 05/31/2011 - 19:01 | 1326913 ebworthen
ebworthen's picture

Red blood in the water and bait on a hook for the little fish so the sharks have food.

Tue, 05/31/2011 - 19:27 | 1327000 buzzsaw99
buzzsaw99's picture

Someone turned me on to this yesterday:

http://www.youtube.com/watch?v=7FoupYrbgtI

Everything u need 2 know.

Tue, 05/31/2011 - 17:26 | 1326645 camoes
camoes's picture

When are we getting negative NOMINAL interest rates?

Tue, 05/31/2011 - 17:46 | 1326654 Use of Weapons
Use of Weapons's picture

Over here in Europe, we're confused - you keep calling us "Socialists" and proudly claiming you're "Capitalists", but Lenin himself couldn't have staged such trickery.

Waiting on Stalin, and Ben's friends to be photoshopped out of the equation.

This group was once known as the "Big Eight", and was reduced to the "Big Five" by a series of mergers. The Big Five became the Big Four after the near-demise of Arthur Andersen in 2002, following its involvement in the Enron scandal.

http://en.wikipedia.org/wiki/Big_Four_%28audit_firms%29

Canada:

http://en.wikipedia.org/wiki/Big_Five_%28banks%29

Worldwide, multiple countries:

http://en.wikipedia.org/wiki/Big_Four_%28banks%29

Uk specific:

http://www.telegraph.co.uk/news/uknews/1540719/Big-Five-banks-made-4m-an...

At the core of the beverage industry is the carbonated soft-drink category. The dominant players in this area (Coca Cola,Pepsi, and Cadbury-Schweppes) own virtually all of the North American market’s most widely distributed and best-knownbrands. They are dominant in world markets as well.

http://www.scribd.com/doc/51696105/beverage-Industry-

it would have been difficult to imagine in 1983 that the corporations that owned all the country's dominant mass media would, in less than twenty years, shrink from fifty separate companies to five.

http://www.thirdworldtraveler.com/Bagdikian/Big_Five_TNMM.html

US Television, Credit ratings, auto industry, advertising [London] and so on.

http://en.wikipedia.org/wiki/Big_Three_

UK supermarkets

http://www.independent.co.uk/news/business/news/supermarkets-pricing-inv...

 

 

We can do this ALL DAY LONG.

 

 

Wake me up when you realise its all a joke, its all a con, its all a fixed price ride. If you think you live in a Capitalist system, you're fucking stupid.

 

TRANSNATIONAL GLOBAL CAPITAL, BITCHES. NOW DEAL WITH IT. "FANNIE MAE".

 

Unless you subscribe to monopolies being the natural outcome of unfettered Capitalism, at which point you may pass the Sphinx.

Tue, 05/31/2011 - 21:38 | 1327272 Smiddywesson
Smiddywesson's picture

+1000

Well said, but over linked.  :- )  Most of us understand the truth in your words, but you have to realize that our vocabulary is rank with the mind control phrases we have been made to swallow our whole lives, so please don't be angered because the way we say things misleads one to thinking we don't get it.  

Wed, 06/01/2011 - 05:37 | 1327833 Hephasteus
Hephasteus's picture

+9000 The names are the facade. The paint on the structure. The image projection.

Thu, 06/02/2011 - 01:21 | 1331558 GoinFawr
GoinFawr's picture

Like with dictators, is it at least possible for the monopoly to be `benevolent`?

Actually, I`m surprised that

"Unless you subscribe to monopolies being the natural outcome of unfettered Capitalism, at which point you pass the Sphinx."

hasn`t brought the hordes of pipe dreaming ZH anarcho capitalists down about your ears yet... wait for it...

Tue, 05/31/2011 - 17:37 | 1326671 McNooder
McNooder's picture

.

Tue, 05/31/2011 - 18:04 | 1326692 Miles Kendig
Miles Kendig's picture

ES vs metals & petroleum margins continue to provide one of the perfect illustrations of current "market" action plus some fab water cooler humor to go with the flying furniture.  Sooner or later the CME might even try working a multi-level margin system whereby those who hold ES longs can get their CL, RBOB & SLV longs at a reduced rate, the D(o)G way.

Tue, 05/31/2011 - 17:52 | 1326694 strannick
strannick's picture

But but..when SILVER volitility increased, they INCREASED margins.

So how come now, with the ES et. al volitility increasing they DECREASE margins??

It just doesnt seem consistent...

Tue, 05/31/2011 - 20:13 | 1327096 Coke and Hookers
Coke and Hookers's picture

What we should be asking here is who profits from manipulating commodities 'in general' upwards while manipulating silver downwards - both using the same method. This is pure manipulation and as blatant as it can possibly be.

So, cui bono? Who has the means and motive?

Any theories?

Tue, 05/31/2011 - 22:26 | 1327394 Amish Hacker
Amish Hacker's picture

I am going to assume that if you're smart enough to know what cui bono means, your question is probably rhetorical. But if you want a theory, here's mine:

We all need to step away from the Bloomberg terminal and forget about 6-minute bar charts for a moment. In the larger view, what's happening in the markets (and in the global political theater) isn't about changes in price. It's about changes in ownership.

Consider the recent smackdown in the silver market as an example. The price collapses violently from 50-ish to 30-ish, top callers everywhere come out from under their rocks, volume spikes. A week or two go by, calm is restored, and silver resumes its long-term uptrend. What has happened? The silver has changed hands. IMO, that's the important thing, not the wild fluctuations in daily price, measured arbitrarily in one doomed fiat currency or another.

One day soon, the "can" of fraudulent markets won't need to be kicked down the road any more, but not until most assets of real value have been transferred into the right hands.

Tue, 05/31/2011 - 22:56 | 1327466 Coke and Hookers
Coke and Hookers's picture

So you think the engineered dip in silver prices was just for the sake of the dip rather than an attempt to suppress silver in general to protect the fiat currency and all that? It sort of makes sense because it's hard to believe that the people 'behind' it actually thought their margin manipualtion would have lasting effects. Unless of course they misread the whole thing or were helping someone out with their short sale margin calls.

Regarding the upwards manipulation of the commodities market in general, I would like to hear your take on this: If we look at the derivatives market as a whole, we can describe it as a giant collective instrument sitting on top of the 'real economy' - sucking the life out of it. The bigger the derivatives pile, the more blood it can presumably suck. Assuming this is an accurate description, is it possible that the manipulation of the commodities market has the same purpose? Inflate the market so it can suck more blood. Real estate is dead and it might make sense for the same people to simply move into commodities, creating a bubble there with the same purpose (and consequences) the housing bubble had.

Is this a plausible theory or total bullshit?

Tue, 05/31/2011 - 23:58 | 1327577 zen0
zen0's picture

dude

Wed, 06/01/2011 - 00:20 | 1327597 Rynak
Rynak's picture

As i mentioned elsewhere: "exchange rate" is just a fancy word of saying, who may aquire which real goods on which conditions. It's not the "price" that matters.... it's what that price represents in the longterm, and what you get in exchange for it in terms of real goods.

To drive the point home: Assume the currency would be destroyed today, and be replaced with a "reseted" new currency. What would change? Answer: The goods you own do not change at all. Currencies and exchange-rates are just a way to define the rules how goods are exchanged.

Even shorter version: Only control of real goods matters. Currencies and exchange rates are just laws which artificially define, how real goods change hands. In the end,  it's always about what you can get, and what do get for your money, not about the money itself. Money is just an intermediate, not the "goal".

This also gives a different perspective on current price manipulations: It is not the goods that are manipulated. It is the rules how goods are exchanged, that are manipulated.

Tue, 05/31/2011 - 18:04 | 1326706 iLoveMisesToPieces
iLoveMisesToPieces's picture

How does this change anything?  Do margins matter to robots that print their own currency?  Or is this just a symbolic, in your face, boot on the back of your neck message?

Tue, 05/31/2011 - 17:58 | 1326717 apberusdisvet
apberusdisvet's picture

The waterfall cometh; these actions couldn't be more transparent; the TBTFs will be all short in 5, 4, 3,..........!

Tue, 05/31/2011 - 18:00 | 1326735 HEHEHE
HEHEHE's picture

As some have commented, it's yet another maneuver to get the right people out of the market.

Tue, 05/31/2011 - 18:15 | 1326777 bob_dabolina
bob_dabolina's picture

Some have commented, most have missed the point. 

There is no market. There hasn't been a market for a while. 

I can't figure out what compels the constitution of "traders/investors" to believe in this illusory perception that an organic market still exists. 

At the end of the day it comes down to one government sponsored ponzi scheme trading against another. It's not real. It takes someone(s) with a sharp mental acuity to recognize this and profit as you must earn at least 8% just to keep up with inflation + 20% capital gains (even higher for PM's) all the while the market is being centrally managed by a select few whom have a monopoly over money and credit.

Tue, 05/31/2011 - 18:08 | 1326748 decon
decon's picture

People are giving the politicians and bureaucrats too much credit.  These guys aren't chess grand masters.  They're only planning 2 or 3 moves ahead and making it up as they go.  They're like water,  they look at the current situation and their array of potential responses and take the path of least resistence.  Constantly going the path of least resistence is what keeps the most people happy at any given time and it's what's gotten us into this mess.

Tue, 05/31/2011 - 18:12 | 1326761 Catullus
Catullus's picture

Hey, spokeswoman for the CME Group, you're a lying sack of dogshit.  Quit.

The cost of imagineering new M3 just went down.  Massively inflationary.

Tue, 05/31/2011 - 18:20 | 1326786 RobotTrader
RobotTrader's picture

Last night and today was a clear example of why you cannot fight toe to toe with Uncle Gorilla this close to a Presidential election campaign.

I mean think about it.  If TPTB were able to sky the SPY 100% in 2 years with the worst news possible in the background, just think how much higher than can drive stocks into the election if the bad news becomes "less bad" over the next 9 months as various stats and data points are "rejiggered" with a few lies to make things actually look better.

Tue, 05/31/2011 - 18:24 | 1326800 bob_dabolina
bob_dabolina's picture

Your mom needs to get rejiggered.

Tue, 05/31/2011 - 18:48 | 1326871 iLoveMisesToPieces
iLoveMisesToPieces's picture

You can't print jobs, you can't print economic prosperity.  How do escape that reality?

Tue, 05/31/2011 - 18:55 | 1326893 bob_dabolina
bob_dabolina's picture

Xanax

Tue, 05/31/2011 - 19:05 | 1326922 ebworthen
ebworthen's picture

Good points. 

I think Uncle Gorilla needs to climb the Empire State, but don't disagree with your assessment.

Tue, 05/31/2011 - 18:30 | 1326821 Monedas
Monedas's picture

I think they are laying a trap for long speculators.....they'll suck you in then raise margins, pull the plug on the internet and declare a bank holiday ! Got gold ? Monedas 2011 Correction for Post #1326758 ! I met to say empty the North Korean prisons, or Russian, or Indian, or ???

Tue, 05/31/2011 - 18:37 | 1326837 BigRedWall
BigRedWall's picture

Is it possible to find the dataset of the margin history from the CME anywhere?  Bloomberg does not have it.

Tue, 05/31/2011 - 18:40 | 1326847 The Axe
The Axe's picture

Something has changed...and that after that close ...I had to change my shorts....

Tue, 05/31/2011 - 18:47 | 1326864 lieutenantjohnchard
lieutenantjohnchard's picture

i think the number is 85% for the total gains over the past 2/3 years coming from holding over night. and if memory serves a very high percentage of that gain comes on monday with the rest of the week flat. i'm sure somebody on the board has the specifics.

Tue, 05/31/2011 - 18:57 | 1326902 ebworthen
ebworthen's picture

 

Mom and Dad:

"Kids, your Uncle Fred is an alcoholic with addictions to prostitution and gambling; therefore, we are sending him to Vegas in the new family sedan with your college fund and a case of assorted liquors.  But don't worry, we are also sending him with a 12-pack of condoms."

 

Tue, 05/31/2011 - 19:07 | 1326938 bud-wiser
bud-wiser's picture

Obviously, we are now just waiting for the little men with pointy heads to arrive and declare the game over.

Makes as much sense as anything.

Tue, 05/31/2011 - 19:16 | 1326969 huggy_in_london
huggy_in_london's picture

ok... that's it... i am out.  I can't play in this game any more.... this is a total utter fraud. 

I mean come on... do they really think people are that stupid?  And i thought the Nazi's were bad....

 

Wed, 06/01/2011 - 02:36 | 1327715 ebworthen
ebworthen's picture

Vat?  Yue quezstion ze markets in New York and ze world?

Iz data Huggy Bear I see?

Vat could be wrong with rigging ze mahkets?

Monte Carlo is vunderful dis time ohf year; come, bring your moneyz.

Tue, 05/31/2011 - 19:21 | 1326976 francis_sawyer
francis_sawyer's picture

got food?

Tue, 05/31/2011 - 19:26 | 1326996 Platinum_Investor
Platinum_Investor's picture

What is ? 

ES, SP, YM

 

thanks

Wed, 06/01/2011 - 02:09 | 1327703 plocequ1
plocequ1's picture

Some kind of colon enema. 

Wed, 06/01/2011 - 04:14 | 1327780 steveo
steveo's picture

US index futures

 

Tue, 05/31/2011 - 19:33 | 1327004 Smokey1
Smokey1's picture

CME eats shit.

Tue, 05/31/2011 - 19:31 | 1327011 bud-wiser
bud-wiser's picture

You are all out-thinking this, IMHO.

Either:

1. The world really does end on an uptick, as my wife has dreamed, or

2. When shorting the market has been outlawed, and ONLY then, the real collapse will finally come.

Until then, stay out of the water when it is red with chum. "Here, fishy fishy fishy..."

Tue, 05/31/2011 - 19:49 | 1327040 buzzsaw99
buzzsaw99's picture

Interesting developments

1) kabuki congress debate over the debt ceiling
a. scares people into stocks
b. lowers yields by reducing supply

2) cme lowers margin requirements, along with #1 this keeps the stock market elevated.
obviously keeping the stock market elevated is foremost on the minds of the ptb. as you noted, banning shorts will be next.

they were doing similar shenanigans in the fall of '08 as the banksters needed forced buyers badly. the question is when they run out of wiggle room will they crash the stock market in order to sell $2T in bonds?

Tue, 05/31/2011 - 23:30 | 1327071 bud-wiser
bud-wiser's picture

That would be hard to sell, politically, at least before November 2012. But hey, after the election? Why not.

edit: Or, maybe by then, we have War. War is good for hiding a lot of sins.

Tue, 05/31/2011 - 19:43 | 1327037 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

The whole thing is beyond ridiculous now...another maid assaulted?...bullshit. The PTB are flipping the bird to EVERYONE

Tue, 05/31/2011 - 20:57 | 1327206 Smartie37
Smartie37's picture

post about Egyptian banker maid assault arrest was deleted....oh well !?!

Wed, 06/01/2011 - 05:38 | 1327835 Hephasteus
Hephasteus's picture

It's a 7 planet gang bang in cardinal signs that started april 29th. Think of it as gubment drama show. They have to elect their drama queen for the big dance.

Tue, 05/31/2011 - 19:54 | 1327052 ffart
ffart's picture

The margin requirements are there to protect the exchange from excessive volatility and oh god why won't anyone believe us anymore so we can cover our shorts and we're running out of ridiculous lies to tell.

Tue, 05/31/2011 - 19:58 | 1327068 monopoly
monopoly's picture

Makes me feel good that I own none of the crap they are selling.Just a little oil, PMs, physical and confetti. Will not play this market day to day. It is rigged, and I cannot fight madmen.

Tue, 05/31/2011 - 20:21 | 1327115 sellstop
sellstop's picture

volatility must be down....

gh

Tue, 05/31/2011 - 20:24 | 1327121 topcallingtroll
topcallingtroll's picture

My life no longer has meaning.

There are no more tops to call.

We got a little ways to go before the treasury top.

Tue, 05/31/2011 - 20:27 | 1327124 FriedEggs
FriedEggs's picture

So far, this is the most interesting and probably going to be one of the most memorable/craziest decades of this century...and we are only 5 months in...

Ever feel like your in someone else's dream?

 

Fried(e)

Tue, 05/31/2011 - 20:35 | 1327151 Michelle
Michelle's picture

My take-they are discouraging a herd of short positions going into the end of QE2.

Tue, 05/31/2011 - 21:11 | 1327229 SilverDosed
SilverDosed's picture

Makes as much sense as anything else.

Tue, 05/31/2011 - 21:51 | 1327303 TheJudge2012
TheJudge2012's picture

Then why the theatrical no vote tonight to raising the debt ceiling?

Tue, 05/31/2011 - 20:55 | 1327201 Long-John-Silver
Long-John-Silver's picture

[Neo sees a black cat walk by them, and then a similar black cat walk by them just like the first one]
Neo: Whoa. Déjà vu.
[Everyone freezes right in their tracks]
Trinity: What did you just say?
Neo: Nothing. Just had a little déjà vu.
Trinity: What did you see?
Cypher: What happened?
Neo: A black cat went past us, and then another that looked just like it.
Trinity: How much like it? Was it the same cat?
Neo: It might have been. I'm not sure.
Morpheus: Switch! Apoc!
Neo: What is it?
Trinity: A déjà vu is usually a glitch in the Matrix. It happens when they change something.

Tue, 05/31/2011 - 20:59 | 1327213 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

The Gen Manager of The New Zealand Mint told me that they are doing 'blazing guns' business with Americans storing their gold therein (sounds like 1929 all over again)

Wed, 06/01/2011 - 04:09 | 1327778 steveo
steveo's picture

give me their number please....

Tue, 05/31/2011 - 21:10 | 1327228 AldoHux_IV
AldoHux_IV's picture

What a bunch of douches.

Tue, 05/31/2011 - 21:57 | 1327319 trembo slice
trembo slice's picture

are the potential returns for mining stocks worth letting go of physical?  i'm hesitant to let go of any physical metal and take the risk picking mining stocks.  After all, gold and silver are real money.

it seems like you could ride this for a bit before reloading on PMs.

Wed, 06/01/2011 - 06:58 | 1327864 ebworthen
ebworthen's picture

The mining stocks haven't been doing that great, lagging the physical.  May change some but they are stocks and the valuation will get hit harder and take longer to recover in a correction than physical IMO.  Personally, I wouldn't trade one for the other.

Tue, 05/31/2011 - 22:20 | 1327373 oncefired
oncefired's picture

Nothing to see here - move along - go back to sleep! The Jerkinator has a Love Child and somebody has to win Dancing with the Stars - go back into that catatoinic state.

Tue, 05/31/2011 - 22:40 | 1327423 user2011
user2011's picture

What will happen if Comex default ?   Will all the one "betting" the ES or SP lost everything ?

What about CME default ? Will that cause ES, SP lost everything ?

Tue, 05/31/2011 - 22:48 | 1327447 mmlevine
mmlevine's picture

I think that the CME et. al. realizes that they need some real players with real risk capital.  Get 'em in soon or the algos will blow each other up and the emporer will indeed have no clothes.

I for one welcome the move.  I can increase the number of contracts I trade each day.

Tue, 05/31/2011 - 22:49 | 1327449 mmlevine
mmlevine's picture

DUPLICATE

Tue, 05/31/2011 - 22:59 | 1327480 williambanzai7
williambanzai7's picture

So this is what it takes to create the illusion of recovery?

Not much imagination.

What else would you expect from a worn out PhD.

Tue, 05/31/2011 - 23:14 | 1327510 thedrickster
thedrickster's picture

The tail levitating the dog?

yuck yuck.

Nikkei specs bitchez....I couldn't help myself..I'm sorry....

So basically the CME is now officially part of the Executive branch/shadow government? Noted.

Tue, 05/31/2011 - 23:14 | 1327514 thedrickster
thedrickster's picture

..

Tue, 05/31/2011 - 23:45 | 1327564 Phillips Capital
Phillips Capital's picture

buy gold up in this bitchhhhhhh. invest in your life. everything on an exchange is controlled by teh man.  

Wed, 06/01/2011 - 00:26 | 1327600 BlackholeDivestment
BlackholeDivestment's picture

http://www.youtube.com/watch?v=y0FI63kDKLU&feature=youtu.be

...lawlessness!!! http://bible.cc/2_thessalonians/2-8.htm

Measured perfectly in time...

http://www.youtube.com/watch?v=lEsVPFdNju4&feature=player_embedded 

...with the ''Dance of the Vampires'' at the Jefferson Memmorial. http://www.youtube.com/watch?v=8jUU3yCy3uI&feature=player_embedded By the way, Jefferson died the same day as Adams, July 4th, the ''Horns of Hattin'', AD 1187, the 66th day after Beltane, the 2nd of Sirius, 1776 Declaration of Independence, when the Sun moves in front of Sirius ...as the ''point within the circle'' in time with the star's measure and claim of dominion upon Earth, as with the image in Heaven ...above.

http://www.bibliotecapleyades.net/sociopolitica/atlantean_conspiracy/atlantean_conspiracy06.htm

http://www.theforbiddenknowledge.com/hardtruth/masonic_forefathers.htm

Wed, 06/01/2011 - 00:13 | 1327601 SilverDoctors
SilverDoctors's picture

Hey, its been 2 weeks since they've raised silver margins. We'll take what we can get.

http://www.silverdoctors.com/

Wed, 06/01/2011 - 00:26 | 1327631 ike
ike's picture

but then, Minsky moment is around the corner

Wed, 06/01/2011 - 04:31 | 1327802 FoieGras
FoieGras's picture

Speechless? Margin req's are being lowered and increased all the time, no matter what realized vol of the last N days has been doing.

Who cares? If you don't like GLOBEX futs then just trade stocks/ETFs.

Wed, 06/01/2011 - 06:47 | 1327860 innertrader
innertrader's picture

Volume is only ONE aspect of risk and Margins are directly related to Risk.  Therefore, market Volitility is much more important than volume.  So, what has been the relative volitility, or average daily trading range of the underlying market?  That is the question you should be asking and sharing with your readers.  Another aspect of Margin is Price.  If price doubles, there would be a huge potential for the CME to increase Margin, due to increased Risk... i.e., Silver.  Your use of Silver as an example is interesting.  How does increasing Margin on Silver, which doubled in price in a realatively short amount of time, put pressure on Longs???  The Longs have ALL the money!  The pressure, it would seem to any thinking man, would be on the shorts!!!

Wed, 06/01/2011 - 08:21 | 1327963 Cthonic
Cthonic's picture

Performance requirements? Wacker Drive? Lolz.

Wed, 06/01/2011 - 08:35 | 1328007 Lazane
Lazane's picture

yes it really is no surprise that the elite manipulate whatever they need to manipulate. They do it because they can. For the rest of us who cannot, well we just sit here ranting and and complaining about those elite who comprise this particular cowering pack of conniving jackals that they are. 

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