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CME Lowers E-Mini Margins

Tyler Durden's picture


This is simply incredible. 40 minutes ago, just as the farce that is the market was in danger of not closing green despite the tech fiascoes from GOOG, MSFT, CMG, MRVL, AMD, MS, and all the others, we had one simple thing to say:

And sure enough, seconds ago...



This whole theater is just getting so very predictable.


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Thu, 10/18/2012 - 16:39 | 2902450 Rubicon
Rubicon's picture

Yeah, you work at the CME.

Thu, 10/18/2012 - 16:41 | 2902458 slaughterer
slaughterer's picture

CME reads ZH for ideas to prop the market.  

Thu, 10/18/2012 - 16:43 | 2902464 Pure Evil
Pure Evil's picture

Maybe with this bit of Deja Vu, Tyler could restart Johnnie Carson's old bit, 'Carnac The Magnificent'.

Thu, 10/18/2012 - 16:49 | 2902489 Turd Ferguson
Turd Ferguson's picture

A: Krugman, Dimon & Paris Hilton

Q: Name a douchebag, a scumbag and hosebag.

Thu, 10/18/2012 - 16:50 | 2902496 fuu
fuu's picture


Thu, 10/18/2012 - 16:55 | 2902510 lineskis
lineskis's picture

Tyler, you just have more power than you want to recognize! ;)

Thu, 10/18/2012 - 17:06 | 2902536 TruthInSunshine
TruthInSunshine's picture

You wacky conspiracy theorists!

This is an efficent market based on transparent and fundamentally sound valuations, and it could safely afford to trade on much more leverage from a systemic standpoint!


It's not like Bernank didn't learn the Greenspan/BernankVer1.0 lesson of what horrible things inevitably happen when a central fractional reserve planning/pumping authority creates asset bubbles!!!

Now enough of the snark while I go enjoy a delicious Chipotle (CMG) rice-a-rito!








Thu, 10/18/2012 - 17:17 | 2902567 Kitler
Kitler's picture


Get your paper assets!... Low money down!... Help feed the starving beast with a 100% charitable donation!

Thu, 10/18/2012 - 17:49 | 2902658 Karl von Bahnhof
Karl von Bahnhof's picture

You are the NEWS!

Predictive reporting, bitchez!

Thu, 10/18/2012 - 19:59 | 2902989 LongBalls
LongBalls's picture

Did someone call for Carnac?

Thu, 10/18/2012 - 16:44 | 2902471 ACP
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Thu, 10/18/2012 - 17:53 | 2902670 Karl von Bahnhof
Karl von Bahnhof's picture

Fuck them in general.

Thu, 10/18/2012 - 16:46 | 2902477 Turd Ferguson
Turd Ferguson's picture

Fucking amazing.

Nice call, Tyler.

Thu, 10/18/2012 - 16:52 | 2902499 saturn
saturn's picture

Zer0 Hedge 0racle bless us with your unending wisdom.

Thu, 10/18/2012 - 17:57 | 2902662 vast-dom
vast-dom's picture






Exchange ................... stretching that Ponzi money out just a bit longer along the timeline...

Thu, 10/18/2012 - 18:08 | 2902703 Mactheknife
Mactheknife's picture

We're going to wake up one morning to a bidless market...

Thu, 10/18/2012 - 16:49 | 2902490 Stoploss
Stoploss's picture

I just checked all my Swiss bullion.

No trouble there today.

Still outperforming the market and everything else.

Well, except for GOOG today.

Thu, 10/18/2012 - 17:01 | 2902532 B-rock
B-rock's picture

ES isn't on the list, alas...

Thu, 10/18/2012 - 19:38 | 2902931 B-rock
B-rock's picture

Why should I be junked for stating the fact that ES is indeed NOT on the list? Fuckhead.

Thu, 10/18/2012 - 17:06 | 2902550 Salah
Salah's picture

It's Chicago-style Pizza.....err, politics.  Gotta keep O'Bozo in.

Thu, 10/18/2012 - 17:13 | 2902568 AGuy
AGuy's picture

Tyler One Small request could you tweeht:

"Time for the Gold Cartel to drop the price of gold below $1000".

I would really like the opportunity to buy on the dip!



Thu, 10/18/2012 - 17:15 | 2902575 Silver Bug
Thu, 10/18/2012 - 18:12 | 2902711 SILVERGEDDON

How come if leverage falls in the market, no one hears a sound ?

Thu, 10/18/2012 - 19:57 | 2902980 Bobbyrib
Bobbyrib's picture

Rubicon, you are proof that some people don't quite understand how propping up the market works. If they don't lower the margin requirements massive selloffs to meet the calls would sink the market. It is common sense for anyone who understands our corrupt financial sector as Tyler seems to.

Thu, 10/18/2012 - 16:40 | 2902453 Robslob
Robslob's picture me I am melting!!!!!!!!!!!

Thu, 10/18/2012 - 16:48 | 2902485 ParkAveFlasher
ParkAveFlasher's picture

And, Scarecrow just lit himself on fire.

Cue Flying Monkeys ...

Thu, 10/18/2012 - 16:52 | 2902502 spastic_colon
spastic_colon's picture

Just more leverage to undo on the way down

Thu, 10/18/2012 - 17:06 | 2902547 CPL
CPL's picture

what a world watta wurilllddd.

Thu, 10/18/2012 - 16:49 | 2902491 The Shootist
The Shootist's picture

Oh no, the markets are down! Halt the indices, it's for the children. Get Wawwen Buffet in here to lull the masses with ukulele songs.

Thu, 10/18/2012 - 17:20 | 2902587 TruthInSunshine
TruthInSunshine's picture

But if the stock market is allowed to fall, ever, it will destroy Helo-Ben's Virtuous Circle Jerk econometric model!!!

Thu, 10/18/2012 - 18:30 | 2902757 DeadFred
DeadFred's picture

They can read charts too. They know there is very little beyond air to support prices now and they're scared. This BS is frustrating but see it for what it is, pure fear.

Thu, 10/18/2012 - 17:11 | 2902560 Miss Expectations
Miss Expectations's picture

"I can't come back, I don't know how it works."

Thu, 10/18/2012 - 16:43 | 2902456 alstry
alstry's picture

"Tyranny is defined as that which is legal for the government but illegal for the citizenry." Thomas Jefferson 
Does anyone on this board really think a private bank/government can simply print money out of thin air, QE, without being tied to production? If so, than why wouldn't every citizen in a democracy vote for government to print them their own money...just like it is doing for the top part of the pyramid? 
Once we started down the path of QE....the system based on a rule of law failed. Once the rule of law fails, it is only a matter of time before the people figure it out and reject the system....which is now occurring with increasing intensity globally.

When we are all milking off the fraudulent promises of each other, you know its an Udder World.

Thu, 10/18/2012 - 16:48 | 2902487 seek
seek's picture

Uhm... We have a government running a $1.5T deficit and using the funds to support dozens of transfer payment programs for the "less fortunate" and a handful of wars. Not every citizen voted for this, but yes, it's affecting every citizen alright. It ain't just the top of the pyramid here.

People aren't going to "figure it out and reject the system." The system won't allow itself to be rejected. So the alternative happens, accelerating printing and lawlessness until the thing goes kaboom.

Kaboom is inevitable. Kaboom is the only option.

I've seen the future, and it looks like this:


Thu, 10/18/2012 - 17:17 | 2902564 alstry
alstry's picture

Without the printing...EVERYONE would be broke and the top part of the pyramid would look just like the bottom.  At that point, we could truly say all men really are equal.

Throughout history, there has always been three forms of money:  Love, Trade and Force.  Clint Eastwood always possessed all three when he rode into town.

As far as the new shape of our economic pyramid, it would resemble the following: ______________________

Thu, 10/18/2012 - 20:02 | 2903001 blunderdog
blunderdog's picture

    Without the printing...EVERYONE would be broke and the top part of the pyramid would look just like the bottom.

Don't be silly.  There were rich folks long before there was a Fed or even the USA.  There's never been any difficulty in figuring out who's "atop the pyramid."

Fri, 10/19/2012 - 00:45 | 2903462 merizobeach
merizobeach's picture

Leonard Cohen saw the future, too.  He said it's going to be murder.

Thu, 10/18/2012 - 17:06 | 2902545 Brother Sebastian
Brother Sebastian's picture

Very well written...and correct.  But I'm not so sure "the people will figure it out."  When I use the same arguments you wrote above on my well-educated, supposedly intelligent friends, they vehemently disagree.  Sadly, the rule of law failed a long time ago in our country.  If and when the majority of Americans do "figure it out" and take to the streets, the government will use all those hollow-point bullets it purchased a short time ago, as well as deploy the assault vehicles, drones and "protectors of freedom" it pays to maintain order.  American will be pitted against American because the real enemy is us...not the taliban or the so-called "axis of evil" nations.     

Thu, 10/18/2012 - 17:22 | 2902589 XitSam
XitSam's picture

Cloward-Piven strategy. Occupy was a proof of concept.

Thu, 10/18/2012 - 17:06 | 2902546 Brother Sebastian
Brother Sebastian's picture

Very well written...and correct.  But I'm not so sure "the people will figure it out."  When I use the same arguments you wrote above on my well-educated, supposedly intelligent friends, they vehemently disagree.  Sadly, the rule of law failed a long time ago in our country.  If and when the majority of Americans do "figure it out" and take to the streets, the government will use all those hollow-point bullets it purchased a short time ago, as well as deploy the assault vehicles, drones and "protectors of freedom" it pays to maintain order.  American will be pitted against American because the real enemy is us...not the taliban or the so-called "axis of evil" nations.     

Thu, 10/18/2012 - 18:13 | 2902717 Mactheknife
Mactheknife's picture

" The end of democracy and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations."  Thomas Jefferson

Fri, 10/19/2012 - 00:47 | 2903469 merizobeach
merizobeach's picture

Well, that part's done.  What did he say would happen next?

Thu, 10/18/2012 - 16:41 | 2902457 alstry
alstry's picture

Raise margins....lower margins....does it really matter anymore?

Thu, 10/18/2012 - 16:43 | 2902467 blu
blu's picture

Dammit Tyler, least you could do is Tweet something that could make us some money.

40 minutes warning is fine. Love ya baby.

Thu, 10/18/2012 - 18:14 | 2902723 a growing concern
a growing concern's picture

Like "Just discovered: FAZ is selling at a 99% discount to NAV"

Thu, 10/18/2012 - 16:43 | 2902468 Buckaroo Banzai
Buckaroo Banzai's picture

What is most horrifying is not what the CME is doing, it is that 99.99% of Americans still have no clue that our financial markets are totally rigged. They will wake up one morning and their money will be all gone and they will be exceedingly confused and will turn on the TV and some douchebag will tell them some giant fucking lies, and they will believe it.

Thu, 10/18/2012 - 17:00 | 2902483 Robslob
Robslob's picture

Unless they own physical.

Physical Definition in the 21st Century:






Farm Land



Anything that can't be printed by the government...etc...etc...etc...

Thu, 10/18/2012 - 17:16 | 2902576 Haager
Haager's picture

Acttually, owning physical will be prohibited wherever possible. And margins on food&water will be tightened further.

Thu, 10/18/2012 - 17:39 | 2902624 samsara
samsara's picture

Yes, and Drugs have been prohibited for decades but it is easy to buy/trade them.


If cash is outlawed,  only outlaws will have cash.

Fri, 10/19/2012 - 00:51 | 2903476 merizobeach
merizobeach's picture

Not disagreeing with you at all, but you neglected to specifically mention hydrocarbons and capacity for electrical generation.

Finally got 'land' checked off my list this year..

Thu, 10/18/2012 - 17:11 | 2902561 Salah
Salah's picture

No, Main Street's smart money is out (notice the volumn?)....they are "getting physical".

So are the Chinese, who leaked that (right now) if the US economy collapsed it'd end civilization, but not in 2020 when they're fully detached.  (Now that story has been seriously spiked!)


Thu, 10/18/2012 - 16:43 | 2902469 The Shootist
The Shootist's picture

Are we in America or Zimbawe?!!

Thu, 10/18/2012 - 17:00 | 2902525 Winston Churchill
Winston Churchill's picture

Rough night ?

If it wasn't for Mugabe(Obummer),we might be better off in Zibabwe.

Might have something to look forward to.

Not to worry, Harare Ben is on the job., and just got some more ink.

Thu, 10/18/2012 - 16:45 | 2902473 IEVI
IEVI's picture

They are not even trying to hide the manipulation any more.

Thu, 10/18/2012 - 16:56 | 2902512 seek
seek's picture

Nope, and many of us have been saying the same thing the last couple months -- for stocks, for Au/Ag, it just keeps getting more and more blatant.

All a sign we're getting closer to the end. I can't remember which euroscum said it, but there was a quote along the lines of "when things are this bad, we have to lie."

Things are that bad. Every new economic stat should carry its standard deviviation, with anything over 3 sigma in bold from here on out.

Thu, 10/18/2012 - 17:01 | 2902530 warezdog
warezdog's picture

They really never have tired to hide it, the fact is everyone was making money and didn't care until they started losing and then looked for a reason why.

When people are making cash hand over fist they don't care if things are manipulated, once they start getting the muppet treatment their eyes start to open.

The awakening has begun, go long on water and food!



Thu, 10/18/2012 - 16:45 | 2902475 fireangelmaverick
fireangelmaverick's picture



Thu, 10/18/2012 - 16:50 | 2902493 e-man
e-man's picture

Nice call from ZH.  This powder keg is gonna blow...

Thu, 10/18/2012 - 16:57 | 2902511 wagthetails
wagthetails's picture

would love to see a historical margin chart (how much looser have they been in the past?).  this is positive today, but eventually they have to tighten (and when the market is weak) which will only compound the weakeness.  another "flow" issue.  Just another cog falling into place in the machine tht will trigger a great crash. 

Thu, 10/18/2012 - 16:56 | 2902514 mammoth mo
mammoth mo's picture

It's not really manipulation son.


You see we control the entire market. 


It's planned.

Thu, 10/18/2012 - 16:58 | 2902519 Jake88
Jake88's picture

Good grief they are broadcasting that the end is near. Can't let it go down because it will crash like never before.

Thu, 10/18/2012 - 16:58 | 2902521 HD
HD's picture

Why things like this don't scare the bulls I'll never know.

Even with the all powerful Fed backstopping everything, everywhere - we still had major market sell offs in 2008, 2009, 2010 and 2011...why is 2012 different?

Thu, 10/18/2012 - 17:01 | 2902533 Robslob
Robslob's picture

Because it isn't 2008, 2009, 2010 or 2011?

Fri, 10/19/2012 - 17:26 | 2905527 LooseLee
LooseLee's picture

 Most equity bulls are retarded.

Thu, 10/18/2012 - 17:00 | 2902524 PUD
PUD's picture

"you sick complicit evil foul manipulative bastards" I suggest everyone write something similar

Thu, 10/18/2012 - 17:01 | 2902529 PowerzThatB
PowerzThatB's picture

It's amazing that folks still want to hedge or invest on the CME.  Like the stock market, I am out and could care less anymore. Unless it is a tangible asset I have no interest...



Thu, 10/18/2012 - 17:01 | 2902531 becky quick and...
becky quick and her beautiful mouth's picture

somebody im'd me this before i saw it on zerohedge, and i thought it was a joke. holy good christ. they better hope for an emp attack, at least then they'll be able to get out of it with some sort of excuse.

Fri, 10/19/2012 - 00:55 | 2903479 merizobeach
merizobeach's picture

Why 'hope for an attack' when the most-used banner in the closet is a false-flag?

Thu, 10/18/2012 - 17:02 | 2902534 Yen Cross
Yen Cross's picture

 When are CME going to lower the margins on " #CLX2"? If I'm getting reemed on the refined stuff, I should at least be able to save a little on the "crude".

Thu, 10/18/2012 - 17:03 | 2902535 stormsailor
stormsailor's picture

yeah, the markets are an always levitating circus.  did anybody see those huge one minute spikes in google after close.  wow, wish i had a trap set like i use to back in the amb days.


amb,  that was the most funnest for the leasest stock i ever traded. (shorted)

Thu, 10/18/2012 - 17:04 | 2902538 c-rev with a twist
c-rev with a twist's picture

Yes, except for the fact that they did not decrease margins on ES.  I enjoy the theater too, but a little accuracy here and there never hurts.

Thu, 10/18/2012 - 17:10 | 2902559 Tyler Durden
Tyler Durden's picture


Hint: there are other currencies besides the USD

Thu, 10/18/2012 - 17:12 | 2902565 stormsailor
stormsailor's picture

oops, somebody got owned, lol

Thu, 10/18/2012 - 17:14 | 2902571 ebworthen
ebworthen's picture

"Leverage!  We need more leverage!  And a stronger fulcrum!"

Thu, 10/18/2012 - 21:44 | 2903206 krilj
krilj's picture

All fine and good...except that the euro dominated emini doesn't trade.  It's a placeholder so other exchanges can't list it in the future.  The CME locks up the 'rights' to the contract by having it listed.  


Go check the volume.

Thu, 10/18/2012 - 17:04 | 2902539 otto skorzeny
otto skorzeny's picture

Karma Police-arrest these men.

Thu, 10/18/2012 - 17:07 | 2902551 LooseLee
LooseLee's picture

Smells like desperation. Won't be long before all paper assets begin moving towards their intrinsic value...

Thu, 10/18/2012 - 17:11 | 2902555 yogibear
yogibear's picture

So much for the free market. 


Thu, 10/18/2012 - 17:10 | 2902562 JustPrintMoreDuh
JustPrintMoreDuh's picture

Remain calm .. all is well.

Thu, 10/18/2012 - 17:13 | 2902566 ebworthen
ebworthen's picture

Time to lower capital margins for TBTF banks and get back to 40X leverage!

Thu, 10/18/2012 - 17:19 | 2902583 BudFox2012
BudFox2012's picture

40 X leverage?  It's amatuer hour if you don't leverage triple digits these days...

Thu, 10/18/2012 - 18:17 | 2902730 Bastiat
Bastiat's picture

That's what derivatives are for.

Thu, 10/18/2012 - 17:14 | 2902570 Ned Zeppelin
Ned Zeppelin's picture

I'd take it as a compliment.

Thu, 10/18/2012 - 17:17 | 2902579 ekm
ekm's picture


This world market management has gone so lost that only two options have remained:


1) Fed and Primary Dealers buy up all S&P and Dow. If that decision is taken, all 13 exchanges will go bankrupt and the next president will have to be annointed as Emperor


2) Have enough luck for Dow to drop 2000 points per day for 5 days in a row so stocks become reasonably priced to re-start trading again.


What do you think is going to happen, 1 or 2?


Thu, 10/18/2012 - 17:24 | 2902592 BudFox2012
BudFox2012's picture

# 1 for sure, except the prez won't be emperor, but annoited a living god (kind of like Xerxes from 300, minus the barbaric relic gold peircings everywhere)

Thu, 10/18/2012 - 17:26 | 2902596 Bob
Bob's picture

Truly amazing.  Even without the soothsaying. 

Thu, 10/18/2012 - 17:26 | 2902597 q99x2
q99x2's picture

Its not a conspiracy theory. It is a conspiracy.

Thu, 10/18/2012 - 17:26 | 2902598 surf0766
surf0766's picture

Dow at 13,500 and the economy is in the shitter.  The middle east is on fire. Europe is collapsing.

Gas at $3.81, food prices rising and rising. Out of control debt , personal and public.

Hope and Freakn' Change !

Thu, 10/18/2012 - 17:36 | 2902617 surf0766
surf0766's picture

Oh look, one of the marxist downed me...........

Fri, 10/19/2012 - 02:51 | 2903595 toomanyfakecons...
toomanyfakeconservatives's picture

Stealth Marxists and keyboard fear bots roam this commentary.

Thu, 10/18/2012 - 17:27 | 2902599 Itch
Itch's picture

Interesting timing indeed... but why the Euro futures? Devils advocate; they might be expecting some dollar volatility and want customers to switch into a (ahem) stable euro, possibly expecting some carnage coming up to the fiscal cliff. Okay, commence stoning.

Thu, 10/18/2012 - 17:28 | 2902604 Robslob
Robslob's picture

Obama economy and what do you get...4 years older and ($6 Trillion) deeper in debt...Saint Peter don't you call me 'cause I can't go I owe my soul to the Government store....

New lyrics from 16 Tons by Tennessee Ernie Ford

Thu, 10/18/2012 - 17:28 | 2902605 saints51
saints51's picture

I have been getting a shitload of ICE future emails about changes too, but not about margin decreases.

Thu, 10/18/2012 - 17:34 | 2902614 icanhasbailout
icanhasbailout's picture

They already made The Onion obsolete... ZH is next

Thu, 10/18/2012 - 17:41 | 2902632 Everybodys All ...
Everybodys All American's picture

So that should take care of a few of the margin calls tomorrow but they can't do this forever.

Thu, 10/18/2012 - 17:42 | 2902636 surf0766
surf0766's picture

They won't. Everything was halted and pushed until after the election is over.

Thu, 10/18/2012 - 18:12 | 2902713 Everybodys All ...
Everybodys All American's picture

...and if or when Obama is re-elected we can expect more of the same only on a grander scale.

Fri, 10/19/2012 - 00:58 | 2903482 merizobeach
merizobeach's picture

No pres is going to open those FEMA camps during his first term.

Thu, 10/18/2012 - 17:48 | 2902657 redpixel
redpixel's picture

"It's amazing that folks still want to hedge or invest on the CME.  Like the stock market, I am out and could care less anymore. Unless it is a tangible asset I have no interest…"  PowerzThatB

I totally agree.  invest in yourself or tangible assets.  Screw the market.  I don't have time to try to figure it out anymore.  There is too much manipulation anyway.

Thu, 10/18/2012 - 17:49 | 2902660 Hetty Green
Hetty Green's picture

Penny slots open for new players!


Thu, 10/18/2012 - 17:50 | 2902664 WhiteNight123129
WhiteNight123129's picture

Tyler you can hang this call to the hall of fame for understand the market dynamics. YOU ARE JUST BEYOND GREAT GUYS. You should record this moment and open a bottle of champagne, this is well deserved.


Thu, 10/18/2012 - 17:53 | 2902671 adr
adr's picture

25 years ago to the day unlimited credit was granted to those who would buy the market when everyone else was selling. The PPT came to power. A vain attempt to keep the paper wealth generator running full tilt.

Hmmm, what could be going on again day after day after day.

If a business is viable and can support itself based on sales, why does its share price even matter?

If the exchange droped 50%, how does that change the true value of a viable corporation? Yes, you can argue reduced market cap leads to less availability of credit. But a viable corporation should be able to exist without it.

The only way the stock market matters is if the corporations traded are not actually viable business entities without the ponzi scheme propping them up.

Thu, 10/18/2012 - 18:16 | 2902727 Everybodys All ...
Everybodys All American's picture

substitute corporations with the too big to fail banks and you will begin to understand the dilemma.

Thu, 10/18/2012 - 19:02 | 2902842 Bob
Bob's picture


Michael Hudson: The Road to Debt Deflation, Debt Peonage, and Neofeudalism

Thu, 10/18/2012 - 18:17 | 2902724 Quinvarius
Quinvarius's picture

You can't fight the bull market.  It has become selfaware.  It will unplug you long before it ever unplugs.

Thu, 10/18/2012 - 18:15 | 2902728 Killer the Buzzard
Killer the Buzzard's picture

Unbelievable.  The CME/Global Ponzi has degraded itself into self-parody.

Thu, 10/18/2012 - 18:17 | 2902732 Bastiat
Bastiat's picture

Is it still fraud if it's transparent?

Fri, 10/19/2012 - 01:01 | 2903489 merizobeach
merizobeach's picture

If what's transparent is fraudulent, imagine how nasty the opaque shit is.

Fri, 10/19/2012 - 02:47 | 2903589 toomanyfakecons...
toomanyfakeconservatives's picture

Opaque, obfuscated, or just plain occult.

Thu, 10/18/2012 - 18:22 | 2902738 outofideas
outofideas's picture

So what the fuck do I do with my 401k now? Can't cash it out without quiting, and I don't feel like any option is safe.

Fri, 10/19/2012 - 02:45 | 2903584 toomanyfakecons...
toomanyfakeconservatives's picture

Unfortunately, anything can happen with the shit-and-piss financial products that often make up these funds. By shit-and-piss I mean things like Mortgage-toilet-paper Backed Securities and stocks which are up 15% in toilet paper money... but actually down 20% against gold this year.


Also, recent executive orders and court decisions pretty much legalize the outright theft or siezure of any account, segregated or individual, so make sure you don't step out of line.

Thu, 10/18/2012 - 18:29 | 2902756 Downtoolong
Downtoolong's picture

Whatever it takes.

Risk is just a number to be manipulated like alll the rest now. All you risk managers who thought you made a difference can go home now. Everything you ever used to think matters has been reduced to one index, and you can trade futures on it 24/7 on our latest exchange. Hell, we'll even hook that up to an HFT algo for you. It's all good. 

Thu, 10/18/2012 - 18:34 | 2902770 cocoablini
cocoablini's picture

Bernanke and Co. have basically 2 machines to inflate perceived money supply. The stock market, which is very easy to manipulate now and the Bond yield. if stocks crater, then so does money supply,collateral or the wealth effect. The fED is fighting deflationary forces of a massive scale-an event which was created BY THE FED because they simply do not understand what machinery they have. The economic system is based on credit-asset inflation. We have the entire system running in revese with asset values collapsing and credit overhang much larger than all asset values. 

If the stock market was allowed to be a real market Google would be at 100. The market died in 2011.

Thu, 10/18/2012 - 18:50 | 2902807 Almost Solvent
Almost Solvent's picture

If the stock market was allowed to be a real market and assets marked to market and derivatives were liquidated as well, the stock market would be zero since every "market maker" would be in the process of liquidation and unable to operate.

Thu, 10/18/2012 - 18:45 | 2902777 chump666
chump666's picture

CME explained in a short 4min clip:

blind leading the blind baby...

Thu, 10/18/2012 - 18:44 | 2902787 hedgehog9999
hedgehog9999's picture

Great way to get some permabulls Bernanke suckers overextended for the adjustment buy buy....

Sell signals across the board , from Taiwan and Ausssie to the venerable Nasdaq, with Goog being the posterchild Today!!! 

Thu, 10/18/2012 - 18:54 | 2902818 WhiteNight123129
WhiteNight123129's picture

Guys have you noticed that the margin requirements have been decreased for all currencies except the Israeli Shekel which had an increase.

Have noticed the increase in margin in tanker rates??

Have you noticed that Mitt Romney is leading in Gallup Polls?


Thu, 10/18/2012 - 18:57 | 2902828 insanelysane
insanelysane's picture

Happy Anniversary MFG

Thu, 10/18/2012 - 19:05 | 2902852 The.Oracle
The.Oracle's picture

I'm still relatively new to all this, so it took me a second to figure out wtf was going on. But that is so damn funny--classic.

Thu, 10/18/2012 - 19:23 | 2902893 alien-IQ
alien-IQ's picture

despite how long I've been reading ZH, every once in a while when shit like this happens...I just have to step back and say again: Damn you guys are GOOD.

Thu, 10/18/2012 - 20:02 | 2902999 AlphaHunter001
AlphaHunter001's picture


Considering the VIX has been low for so long, I'm not sure why they didn't lower margin rates already. There should be a more dynamic model that shifts margin requirements based on daily volatility - as the vol. increases so does the margin and vice versa.. having the CME respond so slowly is quite an outdated model...


This would certainly help any of the spikes we've seen in commodities, as they should have been raising margin requirements as volatility spikes... they need to be current to balance risk vs. maximizing portfolio returns

Thu, 10/18/2012 - 21:25 | 2903165 newworldorder
newworldorder's picture

CME - Its the Chicago way. They are covered as long as the regulators have their back.

Thu, 10/18/2012 - 21:47 | 2903213 hawk nation
hawk nation's picture

Very soon i willbe able to buy stocks without using any of my principal balance. It will be just like zero down for houses and government motor cars


I just have to time the purchases for when I think the whole system collapses so i get everything for free

Thu, 10/18/2012 - 22:41 | 2903305 Downtoolong
Downtoolong's picture

Let's face it, CME are a bunch of whores who will do anything to get another trade on their exchange. That pretty much goes for any exchange these days.

They will try anything. They would make a market in dead babies if they thought people would trade it. Some of their product ideas that didn't stand the test of time were just about as ridiculus.


Thu, 10/18/2012 - 23:27 | 2903375 jballz
jballz's picture


The VIX is at 15. For christ sake why do are you all so ignorant on this subject. Margins--------> volatility.


Sometimes a cigar is just a fucking cigar.


Really detracts from your legitimacy when you hype insignificant (and correctly correlated with volatility) margin changes as some grand conspiracy theory.

Fucking knock it off already.

Fri, 10/19/2012 - 00:47 | 2903467 hedgehog9999
hedgehog9999's picture

What is the CME? I just realized it stands for Coronal Mass Ejection and this is not good according to the pundits.

Fri, 10/19/2012 - 18:33 | 2905662 HSigma
HSigma's picture

You would think a relatively popular financial blog would correctly interpret and understand how SPAN has worked for the past 24yrs. Surely VIX has not been at its lowest level in nearly 6 yrs (pre-crisis) and has absolutely nothing to do with continued broad spectrum lowering of margins. Margin adjusted daily (which is what is implied per topic) to outlier vix sessions makes zero sense for a clearinghouse business. With all the agregious problems plaguing the world of finance, problems which are easily crafted in a truthful/objective manner, why there is a need to succumb to wreckless conspiracy theory I will never know. Only reason you get away with so much inaccuracy is because the majority of your readership are ignorant to the gritty topic facets. I'm reminded of easily molded zombies who watch Fox News/CNN who want the quick fix without performing any leg-work. Similar to Drudge Report, show only topics that fit within ones overwhelming bias. It's interesting how those who apparently stood for contrarian antics and wished not to walk among the flock, have now unknowingly become sheep themselves.

Step back, re-ground yourselves.



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