CME Cuts Crude, Gold Margins

Tyler Durden's picture


There was a time when the CME was rushing to hike crude, gold and silver margins. That seems like an eternity ago. So was the appointment of Obama to the role of margin hiker-in-chief, and his most recent witch hunt to rid the world of all evil speculators (oddly, the speculators are only evil when driving the price of oil higher, never that of stocks). Anyway, as of minutes ago, the CME just cut margins for Crude (CL) and Gold (GC) by 13% and 10% respectively. At this point we doubt it will do much if anything. Those who care, know that the only real assets are those that one has possession of, not held by proxy of an exchange which just can't wait to spring the trap and hike margins the second Bernanke announces the NEW QE. Sorry: the people just aren't going to fall for that one again.

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Thu, 05/24/2012 - 17:17 | 2460263 xtop23
xtop23's picture

Do they really think there are any muppets in this game anymore? 

Thu, 05/24/2012 - 17:19 | 2460270 duncangraper
duncangraper's picture

Yep. Lots of old, patriotic, god fearing ones.  I think they sit in the balcony...

Thu, 05/24/2012 - 17:21 | 2460276 nope-1004
nope-1004's picture

That's it exactly.  No one's playing with the crooks anymore, so they're lowering margins in an attempt to attract new sheeple to fleece.

CFTC is a joke, CME won't back MF Global customers, and JPM runs the whole show anyway, so why get involved with the devil?


Thu, 05/24/2012 - 17:24 | 2460296 Motorhead
Motorhead's picture

CFTC is a joke.

And who's this Bart Chilton?  I think he's the "face" for the CFTC and seems like a slicky boy.  I heard on a Webcast that he's former Goldman Sachs, but I've not seen/heard that corroborated.

Thu, 05/24/2012 - 17:42 | 2460362 SilverTree
SilverTree's picture


Fri, 05/25/2012 - 08:41 | 2461725 GetZeeGold
GetZeeGold's picture



And who's this Bart Chilton?


Better question......where is Bart Chilton? Anytime something bad happens.....he's never around.


Quote : Gosh....we just didn't see this coming! Oh well.....guess we'll have to hold a hearing about this.


Now that the hearing's's back to business as normal bitchez.


Thu, 05/24/2012 - 19:28 | 2460701 bdc63
bdc63's picture

agreed.  its a trap.  they are just giving themselves some elbow room to raise when they REALLY need to

Thu, 05/24/2012 - 20:11 | 2460811 johnnymustardseed
johnnymustardseed's picture

JPM needs more sheep to slaughter..

Fri, 05/25/2012 - 02:03 | 2461430 goldfish1
goldfish1's picture

Sorry: the people just aren't going to fall for that one again.

Sure they are.

Fri, 05/25/2012 - 05:12 | 2461548 tocointhephrase
tocointhephrase's picture

Stand and deliver BITCHEZ!

Thu, 05/24/2012 - 17:29 | 2460312 duncangraper
duncangraper's picture

Because the guy in the cubicle next to you deals with him, your parents do.  

The truth has been successfully obfuscated enough that there's still lots of habitual 401k tithing each week.

Once the guy in the cube next to them figures out it's a sham, then the shit hits critical mass.  Not unitl them though

Thu, 05/24/2012 - 17:38 | 2460348 Au Member
Au Member's picture

CME fool me once shame on you, fool me 900 fucking times with this margin shit then I must be a total fucking idiot.

Buying physical for my kids retirement, comex can shove its paper margin re-re-rehypothecated shite up its collective corrupt arses.


Thu, 05/24/2012 - 19:12 | 2460659 toothpicker
toothpicker's picture

+10 for that one

Thu, 05/24/2012 - 21:20 | 2460984 IrritableBowels
IrritableBowels's picture

LOL avatar

Thu, 05/24/2012 - 18:57 | 2460614 old naughty
old naughty's picture

wait...are you saying they're lurking sheeples to buy gold?


Fri, 05/25/2012 - 02:05 | 2461431 goldfish1
goldfish1's picture

Paaaaaper gold. Not gold.

Thu, 05/24/2012 - 19:08 | 2460645 disabledvet
disabledvet's picture

Because HSBC is running the whole show and JP Morgan is a pathetic excuse for a bank right now. (nice job trying to IPO Facebook at 42. Was that you buying all those shares JP?!)

Fri, 05/25/2012 - 02:07 | 2461436 goldfish1
goldfish1's picture
Facebook banker Morgan Stanley tries to calm brokers' fears after IPO

Bank to adjust thousands of share trades from last week's IPO to ensure no investor pays more than $43 a share

...the bank has now told brokers that no one will pay more than $43 for the shares that are now trading for $33.

Fri, 05/25/2012 - 02:33 | 2461456 goldfish1
goldfish1's picture


Thu, 05/24/2012 - 19:10 | 2460652 RiverRoad
RiverRoad's picture

Maybe the sheeple won't be seduced back in with lower margins but it sure works for THEM.  The smart money will line their pockets with cheap gold and oil like they always do.  They're just as happy having the field to themselves.

Thu, 05/24/2012 - 19:25 | 2460674 RiverRoad
RiverRoad's picture

And oh, by the way, the smart money folks pulling their money out of Euros need some entity (preferably something nice and low) to put it in.  The sheeple left the market long ago; this time they've lowered the margins for themselves which is scary as hell.  It's all quite convenient.

Thu, 05/24/2012 - 17:22 | 2460278 NotApplicable
NotApplicable's picture

Wait a minute. Let me get this straight.

You mean to tell me that gold margins can be lowered?

Must be running out of MFG suckers to Corzine.

Thu, 05/24/2012 - 17:25 | 2460299 Motorhead
Motorhead's picture

Vaporized, yes, lowered, no.

Thu, 05/24/2012 - 19:09 | 2460650 disabledvet
disabledvet's picture

That's the money that got vaporized not the gold. Now tell me again why we're buyers on this news?

Thu, 05/24/2012 - 17:29 | 2460311 RacerX
RacerX's picture

gotta pump so they can write their naked shorts at higher levels. Then will come another plunge.

Lather, rinse, repeat.

Thu, 05/24/2012 - 17:34 | 2460334 Rainman
Rainman's picture

right, it's called fighting the dollar

Thu, 05/24/2012 - 18:52 | 2460602 slaughterer
slaughterer's picture

Gold will be sold off hard as soon as the leveraged spec longs take advantage of this change in margin requirements.  

Thu, 05/24/2012 - 17:20 | 2460272 crghill
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Thu, 05/24/2012 - 17:23 | 2460288 NotApplicable
NotApplicable's picture

Sounds legit. Mr. Market loves you, after all.

Thu, 05/24/2012 - 17:36 | 2460340 sunaJ
sunaJ's picture

Like all totalitarian regimes (including this financial one), it is a sick "love" affair.  TPTB believe we need them just as much as the sheeple think that we could not survive without the banksters.  The sado-masochism ends when the wifebeater beats her badly enough and too many times. She flees for her life.  Eventually, she does not come back.

Oh yeah, and if she doesn't come back, sometimes he hunts her down and kills her so nobody can have her. Prepare accordingly.


Happy Memorial Day

Fri, 05/25/2012 - 00:25 | 2461321 Bizaro World
Bizaro World's picture

Pretty graphic but accurate how you threw in the Happy M-day for good measure, as if I don't have enough trouble sleeping...

Thu, 05/24/2012 - 18:39 | 2460274 l1b3rty
l1b3rty's picture

If not Bernanke it will be Ireland who starts the printing!

Thu, 05/24/2012 - 17:21 | 2460275 Motorhead
Motorhead's picture

Tables, bitchez!

Thu, 05/24/2012 - 17:22 | 2460277 Quintus
Quintus's picture

Awww.  Nobody wants to come and play in their crooked casino anymore.  Next they'll have dancing girls and a free buffet to lure suckers back in.

Thu, 05/24/2012 - 17:25 | 2460300 NotApplicable
NotApplicable's picture

I'm going to hold out for comped drinks, too. Otherwise, I can only think of Mr. Celente.

Thu, 05/24/2012 - 17:22 | 2460279 outamyeffinway
outamyeffinway's picture

The next set up begins!

Thu, 05/24/2012 - 17:22 | 2460280 Bay of Pigs
Bay of Pigs's picture

Paging Mr Barnum, Mr P T Barnum...

Thu, 05/24/2012 - 17:25 | 2460303 Quintus
Quintus's picture

This way to the egress.....

Thu, 05/24/2012 - 17:23 | 2460293 VonManstein
VonManstein's picture

trade spot why bother whith CME

Thu, 05/24/2012 - 17:23 | 2460294 TheCanimal
TheCanimal's picture

Who is the gold customer that went to the Swiss bank for their allocated gold and found out it had been leased out or is that an urban legend?

Thu, 05/24/2012 - 17:26 | 2460304 xtop23
xtop23's picture

Egon Von Greyerz discussed a client that had this occur.

Check GATA you'll see the dispatch.

Thu, 05/24/2012 - 17:27 | 2460307 Motorhead
Motorhead's picture

They never said who the customer was, just that it was a client of Egon von Greyerz's outfit.  See site for interview.

Thu, 05/24/2012 - 17:30 | 2460316 TheCanimal
TheCanimal's picture

So it's an urban legend then.

Thu, 05/24/2012 - 17:38 | 2460344 xtop23
xtop23's picture

So is the idea of segregated customer accounts apparently.

Thu, 05/24/2012 - 17:43 | 2460359 Quintus
Quintus's picture

You won't believe it unless you get the guy's name?  That's a realistic position.  Do you want his phone number too?

People who store gold bars in Swiss banks are generally pretty open and willing to share their personal details.

I'll go check facebook and see if anyone has updated their status to 'Looking for my gold in Geneva'. 

Thu, 05/24/2012 - 19:12 | 2460658 Ratscam
Ratscam's picture

i actually want his dick size in order to put it on facebook and have it reviewed by the NSA for dirty finger prints.

Thu, 05/24/2012 - 17:25 | 2460301 Piranhanoia
Piranhanoia's picture

We promised to cover any losses on that nasty MF Global deal but we just couldn't.

Thu, 05/24/2012 - 17:30 | 2460315 adr
adr's picture

I guess the market won't be satisfied until everyone just say FUCK IT, buys a gun, and shoots themselves in the head for the sweet peace of an everlasting dirt nap.

This planet is over. Everyone's better days were the ones that came before. Outside certain 1%ers dining on fresh baby seal or whatever other delicacy they come up with.

Thu, 05/24/2012 - 17:32 | 2460325 Trimmed Hedge
Trimmed Hedge's picture

My god, man.. Life can be good sometimes, too, you know.

Just gotta design & live your life the best ways you can...  :)

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