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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xtop23's picture

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

duncangraper's picture

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

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?


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.

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.


bdc63's picture

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

johnnymustardseed's picture

JPM needs more sheep to slaughter..

goldfish1's picture

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

Sure they are.

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

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.


old naughty's picture

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


goldfish1's picture

Paaaaaper gold. Not gold.

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?!)

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.

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.

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.

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.

Motorhead's picture

Vaporized, yes, lowered, no.

disabledvet's picture

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

RacerX's picture

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

Lather, rinse, repeat.

Rainman's picture

right, it's called fighting the dollar

slaughterer's picture

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

crghill's picture


NotApplicable's picture

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

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

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...

l1b3rty's picture

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

Motorhead's picture

Tables, bitchez!

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.

NotApplicable's picture

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

outamyeffinway's picture

The next set up begins!

Bay of Pigs's picture

Paging Mr Barnum, Mr P T Barnum...

Quintus's picture

This way to the egress.....

VonManstein's picture

trade spot why bother whith CME

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?

xtop23's picture

Egon Von Greyerz discussed a client that had this occur.

Check GATA you'll see the dispatch.

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.

TheCanimal's picture

So it's an urban legend then.

xtop23's picture

So is the idea of segregated customer accounts apparently.

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'. 

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.

Piranhanoia's picture

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

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.

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...  :)