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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

ITS A FUCKING TRAP.

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 over.......it'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?

ah...hummmmmm.

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.

http://www.guardian.co.uk/technology/2012/may/24/facebook-morgan-stanley...

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

dup

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
crghill's picture

PLEASE PLEASE COME BACK TO THE MARKET....I PROMISE I'LL BE NICE THIS TIME...I PROMISE!!!!!!!!!!!!

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 analogy....love 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!

 

http://silvervigilante.com

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 kingworldnews.com 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...  :)

Thu, 05/24/2012 - 17:38 | 2460347 knukles
knukles's picture

(voice of John Wayne in my head)

There ya' go.  Problems of Social Security and Medicare solved.  Now just bring back that Big Old Death Tax and everybody'll be huggin' and kissin' like a buncha silly assed liberals, pilgrim.

Thu, 05/24/2012 - 17:30 | 2460317 Trimmed Hedge
Trimmed Hedge's picture

Trying to prop up gold..?

Thu, 05/24/2012 - 17:39 | 2460355 knukles
knukles's picture

(voice of John Wayne)

That you tryin' a prop up gold again?

Thu, 05/24/2012 - 17:44 | 2460369 Day_Of_The_Tentacle
Day_Of_The_Tentacle's picture

Unless it is because JPM is short on cash, and needs a little help with the liquidity ;-)

Thu, 05/24/2012 - 19:21 | 2460686 RiverRoad
RiverRoad's picture

YUP.

Thu, 05/24/2012 - 17:31 | 2460319 SILVERGEDDON
SILVERGEDDON's picture

Cut the margins to zero, and throw in a spectacular hooker for the weekend all year long, and I'll think about diving in again. Okay. I thought about it. Nope. NOT GONNA GO THERE. BAD PAPER POO POO JU JU at the crimex keeps me real physical. Shove it up your poop chute, dickwads.

Thu, 05/24/2012 - 17:37 | 2460343 fonzannoon
fonzannoon's picture

I think they know no one is coming back in. It's window dressing to make real assets like like risky assets. They need to write more articles about how gold is no longer a safe haven while they scratch their heads over which banks will be the ebenficiary's of runs on other banks.

Thu, 05/24/2012 - 18:23 | 2460414 Quinvarius
Quinvarius's picture

It is more like they see the public shorts piling on into a bottom and are going to rape them.

http://www.gotgoldreport.com/2012/05/cftc-managed-money-short-positioning-high-for-gold-silver-.html

Look at those positional charts.

Thu, 05/24/2012 - 17:38 | 2460346 The_Euro_Sucks
The_Euro_Sucks's picture

Please come again to us and take 100 ounces of paper gold and not the 3 ounces of the physical please. Pretty please??? Really we wont fuck you holding that paper from now on.

Thu, 05/24/2012 - 17:38 | 2460349 Irene
Irene's picture

COMEX is still in business?  Who knew.

Thu, 05/24/2012 - 17:47 | 2460381 colin
colin's picture

strange, i went to dealer, they wanted my to pay 100% of the price for a Kruger Rand. Dont they know about the CME?

Thu, 05/24/2012 - 17:49 | 2460391 noses
noses's picture

Looks like the Greek want to keep their shit and eat it at the same time. We really should let them get what they desire.

Thu, 05/24/2012 - 17:51 | 2460401 brainwashed
brainwashed's picture

aren't margin requirements tied to the price? The price has moved lower and so did the margin requirement. am i missing something?

Thu, 05/24/2012 - 18:00 | 2460438 Vint Slugs
Vint Slugs's picture

You're mostly right unlike many of the pikers on this site who probably have never traded a contract in their lives.  Margin requirements are largely a function of price volatility.  Because most retail type traders are on the long side, bull markets tend to see relatively more margin hikes.  When markets like silver, gold and now maybe crude oil go into a bear phase, volatility and retail long side participation drop.  Thus the exchange lowers requirements.

Thu, 05/24/2012 - 18:23 | 2460500 Quinvarius
Quinvarius's picture

I like how you insulted everyone before you posted exactly what the CME has not been doing.  Do go on about how the CME does not raise margins after a bank raid on a commodity.  So precious.  So precious.

Thu, 05/24/2012 - 17:58 | 2460428 Kastorsky
Kastorsky's picture

and it has no effect whatsoever, unlike when they increase it.

wonder why?

Thu, 05/24/2012 - 19:05 | 2460635 max2205
max2205's picture

Deflation sucks. Come on Ben. Make the call. Bendouche! Facedouche. Morgandouche JPdouchd. Ect

Thu, 05/24/2012 - 19:33 | 2460713 junkyardjack
junkyardjack's picture

Since margin hikes are set up to destroy gold then margin cuts mean bullish, hmmm price says otherwise...

Thu, 05/24/2012 - 19:47 | 2460754 covert
covert's picture

bubbles soon to burst?

http://covert.ias3.com/expose/

 

Thu, 05/24/2012 - 22:02 | 2461067 Yohimbo
Yohimbo's picture

I hear theyll pay you double your delivery value.....if you stand for delivery.

nice little racket you could run there.

Thu, 05/24/2012 - 22:31 | 2461117 israhole
israhole's picture

Paper metal on the CME. LOL!  Who gives a fuck what they do?

 

Thu, 05/24/2012 - 23:44 | 2461241 matrix2012
matrix2012's picture

If a man fools me once, shame on him. If he fools me twice, shame on me.” — Chinese Proverb

Thu, 05/24/2012 - 23:52 | 2461266 efiniti
efiniti's picture

Or for Americans,

 

"Fool me once, shame on.. shame on me.. ? .. Fool me, can't get fooled again."  -- George Bush

Fri, 05/25/2012 - 00:09 | 2461298 matrix2012
matrix2012's picture

 

What is CME?

CME = Criminally Manipulative Exchange

CME = Criminally Masterminded Exchange

CME = Criminally Machiavellian Exchange

CME = Coated Metal-look Exchange

 

One may instead substitute the first word with Crook :D

 

Fri, 05/25/2012 - 01:53 | 2461415 nathan1234
nathan1234's picture

Problem is based on the CME prices, trading takes place in other commodity exchanges around the world.

It's time that paper trading is discontinued in precious metals.

One cannot deal with crooks and allow them to be a part of the system.

The CFTC crroks , The SEC crookds, The CME crooks along with their Obummer Admininstration are responsible for the Finacnial Frauds in the world.

Wed, 05/30/2012 - 05:29 | 2474505 youyou208
youyou208's picture

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