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CME Goes To Collateral DefCon 1: Makes Maintenance Margin Equal To Initial For... Everything!?
Update: Based on unofficial statements by the CME, it appears that the exchange has gone the way of inviting more risk by lowering Initial to meet existing Maintenance margin across the board. We will likely only know for certain on Monday. We suppose the proposed explanation will be to minimize margin exposure for onboarded MF positions. Of course, that this is very much counterintuitive at a time when risk is spiking and vol readings per SPAN are soaring, and instead is inviting even more risk, is apparently irrelevant to the exchange.
The most important news announcement of the day was not anything to came out of Cannes (as nothing did), nor from Greece (the merry go round farce there continues unabated). No, it was a brief paragraph distributed by the CME long after everyone had gone home, and was already on their 3rd drink. It is critical, because not only is this announcement a direct consequence of what happened with MF Global several days ago, but because also it confirms one of our biggest concerns: systemic liquidity is non-existanet. We confirmed interbank liquidity in Europe was at an all time low earlier today, and can only assume the same is true for US banks. But what is very disturbing is that this is just as true at the exchange level, where it appears the aftermath of the MF collapse is just now being felt. What exactly was the announcement. Unless we are completely reading it incorrectly, it is nothing short of a margin call for tens if not hundreds of billions worth of product. Because as of close of business on November 4, today, the CME just made the maintenance margin, traditionally about 26% lower than the initial margin for specs, equal. For everything. Which means that by close of business Monday, millions of options and futures holders will be forced to deposit billions in additional capital to the CME just so they are not found to be margin deficient, and thus receive a margin call. Naturally, since it is very unlikely that this incremental amount of liquidity can be easily procured in one business day, we anticipate the issuance of hundreds of thousands of margin calls Monday, followed by forced liquidations of margin accounts across America... and the world. Just like when Lehman blew up, it took 5 days for Money Markets to break. Is this unprecedented elimination in the distinction between initial and maintenance margin the post-MF equivalent of the first domino to fall this time around?
From the CME (source):
And for those asking, here is a complete breakdown of all CME products and associated margins:
»
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Do lube and dry powder mix?
Ask Rick Santorum
No, but it doesn't hurt until later.
Which of course is the theme of the entire goddamn global Ponzi.
Why would you hold any position over the weekend...idiots
Short CME?
Bada-boom! The party is just starting here folks.
Tyler(s), I can't believe you didn't wheel out the deer-caught-in-headlights for this.
Maybe they'll catch that in the update. I agree, totally deer-worthy. It's the ZH icon for SHTF, and this is definitely fan-worthy.
.
between longs and shorts.. this is a wash..
just fucks the small trader
as long as canadian real estate prices keeps rising, who cares!
Wiki on margins says this:
"The variation margin or maintenance margin is not collateral, but a daily payment of profits and losses. Futures are marked-to-market every day, so the current price is compared to the previous day's price. The profit or loss on the day of a position is then paid to or debited from the holder by the futures exchange. This is possible, because the exchange is the central counterparty to all contracts, and the number of long contracts equals the number of short contracts."
"The initial margin requirement is the amount required to be collateralized in order to open a position. Thereafter, the amount required to be kept in collateral until the position is closed is the maintenance requirement. The maintenance requirement is the minimum amount to be collateralized in order to keep an open position. It is generally lower than the initial requirement. This allows the price to move against the margin without forcing a margin call immediately after the initial transaction. On instruments determined to be especially risky, however, the regulators, the exchange, or the broker may set the maintenance requirement higher than normal or equal to the initial requirement to reduce their exposure to the risk accepted by the trader."
If this information (Maintenance margin) - Wikipedia, the free encyclopedia is accurate, then ZH is probably right. It looks like to me that the CME just locked out any margin trading. You can still trade but you've got to pay cash.
The key is that the exchange is the central counterparty, so they would be on the hook to traders that are up if the traders that are down can't pay their margin calls. So this looks like a giant "show me the money" moment.
my source is series 3 material from the national futures association. there is also overnight margin and intraday margin.
like i said before, setting maintenence margin = initial margin will only affect the 1 contract ES piker- non event
>.>
Get a new account already.
Can someone clarify if the fact that this is just for PERFORMANCE BONDS means this is no big deal?
Because back on page 1 some were talking about the difference between performance bonds and all bonds and the fact that this is for performance means it's not that big. But nobody picked up on it that I can find.
performance bond means margin
thx - I'd be to the lesser end of your readers on bond knowledge so I beg endulgence on the next question - so then it wasn't something you "missed" as was said earlier, i.e confusing performace bonds with all bonds. Or maybe I'm just too lost to be in this thread.
Can we talk about Star Trek or something?
"I am Bernankus of Borg. Lower your inflation shields and surrender your bank accounts. We will add your financial and monetary assets to our own. Your wealth will be assimilated by the oligarchy. Resistance is futile."
The giant ice cream cone interstellar monster is about to eat your planet. Have a nice weekend and watch that leverage.
Oh yeah... "Doomsday Machine"... my favorite Star Trek episode.
nuqDaq 'oH puchpa''e'?
Just a suggestion......maybe encourage readers who haven't been in the business to read a Series 7 study guide...
they even have it for dummies
http://www.amazon.com/Exam-Dummies-Steven-M-Rice/dp/0470099321
Well that was a great set up for the Sunday open. ):
I appreciate paragraphs.
How ever the Article hit { HOME } ...
Keep up the good work, and stay away from those credit swaps<
CPE 1704 TKS
geek cred established.
how much of the mack daddys campaign $ were in mf? there is no spoon. the silver one
Both initial and maintenance margin are less than 100% of the cash value of the goods, so this does not necessarily mean the end of margin at the CME, it just means that henceforth when you do a trade you may need to post additional collateral very soon afterwards because the CME has eliminated the downside cushion that used to exist because maintenance was less than initial.
It's starting, it's starting. You see they where saying everything was okay and nothing wrong even the CEO of Lehman was saying everything was fine 18 hours before they filed for bankruptcy THE CEO!!!!!!! I see the pattern, MF goes down and 1/3 if not more of the CME future guys and gals couldn't get onto the floor that monday because of the bankruptcy. Then we find out that they co-mingled 1.5 billion in client money with the company money, which should never have happened and on it's face illegal no matter how many times they say it was an accident or nothing to see here. Then we have Jeffries another one like MF having to come out three times (today) that they aren't MF and there exposure is little (but the balances each time are different?). Where there's smoke there's fire. Ask yourself something, if the world is about to end would they tell you or lie to you? If the start of the Western banking implosion was on the eve of happening, would the govt. and media try all in it's power to make light or obfuscate anything that looks like a run or a meltdown or whatever.
Mark my words, MF was the first domino for the US. Corzine used to run Goldman Sachs for a long time before he became Senator and Governor, he's no dummy. You mean to tell me that nobody could have floated him that 1.5 billion to keep in those accounts or even gave him or loaned him 6.5 billion to make good on his EU sovereign bonds. I think there is alot more happening behind the scenes and it has to do with CDS's. And as I said before, where there's smoke there's fire and Jeffries does protest too much if I have to say.
I laughed today when I watched obama at the g 20 conference talking about how the U.S. had successfully shored up its financial system... he will eat those words soon
What a fucking ass.
He surely did protect the 1% he dearly befriend with, didn't he?
Voted by the 99% paid by the 1%
But will he eat his peas? Enquiring minds want to know....
Yes, right before he smokes a Camel and erases the tape of it.
"Mission Accomplished"
As much as I would love to agree - In the past few months there have been moments where I was literally open mouth, stunned silence amazed that TPTB have managed to keep this global ponzi duct taped together. We all know it's going to implode - it's the "when" they are so adept at delaying that is driving me slowly mad. I would love for this to be it - so we can get an actually recovery...but I'll believe it when I see it.
i swear that one day that wolf is gonna show up!
2pm GMT -UK: Nat West/RBS internernet banking is `unavailable at this time` not just `down for weekend maitenance- back at 4pm` HMMMM
Well, looking at it from a "who benefits by this bull shit" perspective, we can see that who ever is massively short everything seems to need a very strong helping hand here. Gives them a chance to cover.
Such a heavy hand across the boards, regardless of the potential for disruption on a global scale, causes one to wonder: "Does a hunter carry an elephant gun to shoot mice?" So, if one sees a hunter with a very large gun, one would do well to consider WHAT he is hunting. To me this is a very large caliber weapon that has just been fired.
All I can say is someone is very desperate indeed. And that the result of this will be either in or out of the frying pan, but not out of the blazing heat...IMO. (shaking head)
it's like going hunting with cheney, regardless of what caliber gun he's carryng!
Fukushima update.
A baby white albino cyclops shark caught in Pacific, state side.
http://www.foxnews.com/scitech/2011/10/18/albino-cyclops-shark-is-real-e...
Long cancer treatment centers!
Got Milk? If you drink milk from California, there still seems to be detectible levels of radioactive Cesium. “9/27 (12:17pm): We have posted two new store-bought milk samples with Best By dates of 9/26 and 10/1. We continue to detect low levels of both Cs-134 and Cs-137.” http://geigercounter.com/archives/902
The , ECB was , respectfully denied , by the BRIC's and IMF! Imagine a CNY deal with the EU? That would implicate an acceptance of the yuan as a reputable currency. Japan would never allow that! Hell, the Koreans are barking at their heels.
Better yet! Imagine a BoJ, Kampo, Mof (Buyback on JGB's vs Euro Bonds? ) Intervention won't work, in it's traditional sense.
Japan is in decompression. Buy some inflation!
Here is more on the "performance bond"
http://www.cmegroup.com/clearing/cme-clearing-overview/performance-bonds...
How Trading and Performance Bonds/Margins Work: An Example
Suppose a trader established a position to buy (go long) a September E-mini S&P 500 futures contract on June 13, when the contract was trading at 1050.00 points [This number is for demonstration purposes only – it is not meant to reflect the current value of the S&P 500]. Suppose also that CME at the time required an initial performance bond of $4,000 to trade that contract, with a maintenance bond of $3200.
If the price variations of the contract bring the account balance under $3200, the trader will have to deposit additional funds to bring the account back up to $4,000. The trader’s potential gains and losses change each time the settlement price of the contract changes, with the final gain or loss determined when the trader either offsets the contract by selling it, or when the contract expires.
Trader Dan has a view on this:
http://traderdannorcini.blogspot.com/
I would be surprised if any of those accounts were free to trade. IIRC they were free to liquidate. But I'm not sure if they can get the money transferd out of MFG. So, in essence, MFGlobal is quite willing to let you sell positions and to keep the money you got for the sale...see you in bancrupcy court.
Also, regarding REFCO's prior arguement that the 17,000 accounts it said were unsecured creditors: if the language of the account description/contract said that the account was part of some kind of pool or other vehicle that made the trader an unsecured creditor then indeed they would be last in line for reimbursement.
How much to bet this exact thing happened AGAIN under the name of MFG?? The so called "comingled" accounts may very well legally be unsecured debt. Just a thought.
IMO Babylon is indeed falling.
Another interpretation (no affiliation)
http://traderdannorcini.blogspot.com/2011/11/cme-group-hiking-margins-ac...
Is this why?
Ex-MF Global Clients Fear Margin Calls After Transfershttp://www.foxbusiness.com/industries/2011/11/04/ex-mf-global-clients-fe...
"Friday, CME Group Inc. (CME) transferred about $1.45 billion in 15,000 customer accounts from MF Global's U.S. brokerage--roughly 30% of the 50,000 accounts to be moved--to new clearing firms. A group of 10 clearing firms received the bulk transfers throughout the day Friday and began contacting clients about the accounts.
For many of those new clients, the process was a nerve-wracking experience. Some said they were still unsure of when they would gain access to an active account, which is required to resume trading. Others who gained access rushed to sell some positions in order to meet what they expect will be margin calls due to bets that have turned against them over the past week."
I'm no expert but it seems to me that many MF customers who can't access and manage their postiions are getting screwed. Now correct me if I'm wrong, but this would mean that the 35,000 pending accounts are going to have to be sorted out during market turbulance starting Sunday, perhaps making it even worse? Ya?
Maybe CME is another Greece (or a German "bad bank"), and "decisions and facts" will change, and then keep changing almost hourly?
the morg said it had the missing mf global money and now i was wondering if the morg and blythe have to couph up some more cash for cme for their silver short positions................
Try googling the post's header to assess the DefCon level on the web:
CME Goes To Margin DefCon 1: Makes Maintenance Margin Equal To Initial For... Everything!?So does this mean more than just the Duke Bros. seats are going to be available on the exchanges?
I worked really hard on this! Enjoy!!!http://www.youtube.com/watch?v=EsHshHzZjs4&feature=feedu
I love the way they say defauuuults. Nice effort - the problem I see is that just like with Greece - the ISDA decides if a "credit event" has occurred - and they will never do that if it takes down the system. Why? Well, who is the ISDA? Broker dealers, hedge funds and Wall Street firms.
That's why CDS are basically worthless as a hedge now.
Well Done.
para: "You mean that within 5 minutes, everybody in the financial system will be clamoring for 200 Trillion dollars that does not exist?"
"yes, help yourself to pharmacuticals and alchohol on your way out."
So we'll dip to $1400 G and $28 S and be back to $1750 G and $35 gold by mid-January? *yawns*
Based on what type of analysis? Fundamentals? You can grow a lot of commodities (corn/pork bellies/cattle). Now, that does not mean they are abundant, or will be any time soon. But you are touching on finite commodities (gold/silver). There is only a set amount of them in the world, and the CME Group just said, "No more leverage".
What do you think that makes of their demand/supply?
I think that means a short term excess supply, as leveraged investors dump to cover their margins. I'll be on the buy side.
What happens when the leveraged investors never had any actual metal to start with?
They pay with cash in lieu of...oh...wait a minute...
Exactly. Everyone not caught in the shitstorm will be on the buy side. Most people, and machines, will be on the buy side. Which trades have momentum? Certainly not gold, which has been in an uptrend for a decade.....
Analysis? Fundamentals? In this market? You must be from a different plant. I live on Earth, 2011.
Fundamentals:
1a-
Oil is the lifeblood of the economy. It fules (almost) all transportaion, and we rely on it (above and away) as our main energy source.
Gold is monie. It is held in Central Banks as the Chief asset of colateral for loans; it is the anchor of all bank balance sheets.
Silver and platinum are highly valued industry metals, which can also be used as money.
The Fiat Ponzi system (see previous definitions) is deeply leveraged in debt.
1b-
Oil, gold, and silver are finite resources.
Oil and gold have peaked production (as has platinum).
Silver will peak soon.
2-
Neo classical economics does not use finite resources into consideration concerning its metrices, yet it does use gold as colateral.
In final-
We are still on a gold standard, if it is admitted or not. Thusly, as the world Fiat Ponzi system dicenigrates, truth will rise to the fore front of the main. It has been a relatively slow burn so far, but the winds are picking up; don't get caught on the wrong side of the line, for if you do, you will surely get caught in a blaze.
Oh good lord. Few here, including moi, disagree with this fundamental view you express. Did you just want to express this? How does my initial post put this view in doubt? Review: (a) this move will likely hurt PM's, (b) there will be a bottom, (c) the pain will be temporary (for those in paper), and (d) PM's will go back up. And they will keep going back up. When will they hit the arbitrary price targets I suggested? Doesn't matter. I'm assuming you are in physical, so what does it matter? I don't care either, hence the *yawn*
How the fuck am I suppossed to know what you mean by your above comment? You think I can read minds?
Pretty clear: the price of G and S will whipsaw, as it has, when the pressure of margin adjustment is applied. This has been the case for the midterm. Fundamentals play a part as fundamentals apply upward pressure on the price of G and S, but that pressure is secondary to the "tools" (read: dark artistry) at the CME which depresses the prices of these PM's. If fundamentals were controlling, then the price of G and S would be much, much higher. But price discovery is governed by the exchange and it is a manipulated game. You can introduce the discussion of what G and S "should" be, but that's, at best, naive. I'm long G and S because, probably like you, I anticipate this manipulation can't last forever, but it will probably last longer than you and I think it will. Best of luck.
and the CME Group just said, "No more leverage".
Not quite. They said "you can still buy a $175,000 gold future contract for $11,475, but we're raising the maintenance margin from $8500 to $11475, getting rid of your $2975 loss-cushion."
I'm not sure about the previous CME margin hikes but I assume those were hikes of 'initial' margins. This one is a 'maintenance' one.
And I actually think this one is bullish for gold because gold has been going up recently. The short side, because it's been losing the past week, will have to add disproportionately more margin funds than the long side. For the most part, the long side will have the initial margin plus the recent profit on account with CME, so they won't have to deposit much more money. The short side will have the initial margin minus the recent loss on account (somewhere below $11475 and above $8500), and since maintenance is now being raised from $8500 to $11475, they will have to deposit the extra funds. So a lot more gold shorts will have to either 1) deposit more margin or 2) liquidate their position (in case of shorts, buy it back)
Same goes for all other CME products affected by this. On Monday, the trend (of last few days) could be your friend.
Obviously, this doesn't take into account the market's interpretation of the message this margin-change sends about CME and other exchanges. This could be seen as the beginning of an avalanche of margin-calls.
Good time for Ben to try his new printer
Yup. Time to fund the IMF bailout of Europe.
HPD, This is just a clusterfuck! I'm generally, not one to curse. Tyler has hit the Nail on the Head! The credit markets are close to SEIZING" again! The markets are showing it. There is no way for the EU, to finance it's way out of this.
The Central Bank ( EU ) will print, and the Fed is out of " Practical lending tools". The markets yawned at Helicopter Ben this week!
15 Trillion, and the debt ceiling was just raised 2Trillion ... The money is spent before it's replaced! Heck BoE is talking about additional QE next week! Good ole Merve the Swerve!
Have a good weekend all. You deserve it.
santelli today was saying today some comments about how people around there were scratching their heads trying to figure out what was going on with the trades. he said the cme trades were going trhough ok, but he said something about how cme was holding back some of the money. he said he could not figure out why they were doing this .............hmmmmm.......
And of course there's an Angels song for this one too:
http://www.youtube.com/watch?feature=player_detailpage&v=DgHwsnhTh3U
Follow up on an old Bologna ZH story:
Bologna E-Cat Test a Success
E-Cat Orders Being Taken After Successful Launch
http://pesn.com/2011/11/03/9501945_E-Cat_Orders_Being_Taken_After_Succes...
That is stupid.
No, anyone buying at this point without having had their own team of scientists examine the device is stupid.
On the other hand, this guy Rossi is brilliant. Either as an engineer or a scam artist, or maybe even both.
Better said as I cannot expect you to read my mind or decipher my cryptic comment "ditto"
Fully and Completely destroyed as a fraud on http://blog.newenergytimes.com/
Eh? All I see are criticisms of his methods. The author fails to understand the difference between a scientist who publishes papers with the goal of gaining status and awards, and a businessman/engineer who relies on trade secrets. Just because something isn't published doesn't mean it isn't real. If that were the case, then half of the products in your home would fall apart due to the sudden disappearance of non-existant materials.
I agree that there are better ways to run the experiment. They should have had some controls, such as having one module have the hydrogen or nickel removed, and perhaps allowing the observers to supply the input energy. Running the device for a longer time period would probably work as well.
Some of these criticisms are preposterous--like the "breathing water" one. 3700+ liters of water were vaporized over 5.5 hours. That is like a large fishtank per hour. Certainly enough to make the air moist, but nowhere near enough to make if "pure water", unless the experiment was being carried out in a sealed pressure vessel with a very low volume.
No, this has done nothing to prove that this is a fraud. I do wish that the device was examined independently, and tested by engineers and scientists not associated with his company. But that is the failing of the trade secrets model--you have to look at the final results, and only the final results. Until one of these devices can be procured and tested independently, we won't really know one way or another.
If this is true, and the consequences that first spring to mind are realised...pffffffffff, this is carve-up city, this is fucking "bring out the gimp" on steroids time, in special edition white PVC, with a pink rubber shotgun, and billard balls in a sock that are really luminous exploding lubricant bombs... am i getting carried away here? Anyhow, good luck.
Since the banks are broke ,this is a ploy to capture/impound more money. Then they will leverage this money 10/20 times for their immediate requirements.
The one's left in the PM game are strong hands. If this affects others like oil, copper then we may see big drops.
The shit dribbeleth from the fan.
While heavily flailing in the room launching a projectile in the mouth of a Gurgling Blythe.
A fun tune for the troops of trading! http://www.youtube.com/watch?v=6nQCxwneUwA
Margin debt wipeout..!.interesting I was reading a book on the last Depression, the margin clerks were gods. In one call after the crash, a successful businessman was waiting in his hotel room with champagne, for his blonde pros to arrive, when she was let in it was his brokers blonde secretary who handed him a margin bill of 400,000 (in 1929 dollars) and left.
Scythes and tillers bitchez!
Aw hell, if the world's ending again, let's watch the especially fucked up Dweezil Zappa version of 'Hit Me Baby One More Time' with perfect anime cutting:
http://www.youtube.com/watch?v=VpxVbPiPoP4
you made me smile. thank you.
I will be adding even more of the most important metal in my precious metals portfolio, copper jacketed lead!
"Remember Lehman? Well it's worse than that. Way worse. This also means that CME needs capital. A LOT of it. If CME goes under, you ain't see nothing yet. And what's funnier, people getting their money out of the big banks tomorrow will screw the big banks even more, they'll have even less cash to cover the margins... when you can't cover your margins, you are forced to SELL... which means EVERYONE will have to sell. Finally, the whole freaking scam ends MONDAY MORNING! ... a lot of people will go bankrupt monday morning." IF you didn't plan on moving your money out of the big banks tomorrow... DO IT... Seriously. Especially Bank Of America... If you are in one of the top banks...
- Bank of America
- JPMorgan
- Citigroup
- Wells Fargo
- Goldman Sachs
- Morgan Stanley
- Met Life
- Barclays
Even in Europe, if you are in a big bank, get out of there, the domino effect could be epic."
http://www.abovetopsecret.com/forum/thread772182/pg1
obama says fu
http://campaign2012.washingtonexaminer.com/blogs/beltway-confidential/wh...
http://www.miamiherald.com/2011/11/04/2486743/imf-may-take-role-in-europe-crisis.html
Christine LaGarde said she had her checkbook ready..
its a chicago kind of thingy,.,....
Perhaps I am lacking experience with assumptions associated with CME, but this notification is ambivalent, and could go any number of ways. Does it state that either the initial or the maintenance are held constant or equal to their previous rates? If not, this could imply any number of things. It could mean rates are increased or rates are decreased. Example, 0.1/0.1 = 1, or 0.5/0.5 = 1. My point is that I don’t think a conclusion can be deduced based on the provided information. Am I missing something?
Be careful on the sunday open fellow traders. I have been advised ; BUT CAN NOT, confirm a slight correlation break of the e/u and SPX trade is coming next week! That means commodity currencies are likely to be volatile. The usd/cad should stay correlated to the USD, ( nasty cad numbers) while the aud looks poised for a plunge. This is " NOT" a confirmed trade. Track your FIBI's and Moving averages accordingly. Watch out for " STOP SWEEPERS" Sunday!
I'm long USD mid term. So trade smalls and add when you get indicators. Here is a reminder. http://www.youtube.com/watch?v=VaP0tnORkJI
Who holds these margin balances? Your broker or the CME? If the CME, who is the bank that holds and manages that money?
I don't trade on the CME, but if I did, their practice of changing margin requirements with absolutely no warning would make me very angry. At the very least, they should give a few days warning.
Also, I wonder whether the guys who are making these decisions are also trading on the CME? If so, they would have a huge unfair advantage.
I bet this is just gonna be a non-event. After these last 2 years, I will need to see a crash before I believe it.
i think so too. There was an article on MSGlobal margin sell today, but the market almost closed green.
This is an understandable position. This can has been kicked many more times than most thought possible. This LOOKS like the end, because it is worse than it ever has been, but who knows?
That's normalcy bias at work. You'll be correct until you aren't. The problem is that one time will be the shitstorm of the century, and the probability of a current event being that one time is low, but skyrocketing higher. This is definitely one of those scary events.
The effect of margin at the margin: the impact of this CME decision will be in the ripple effect.
First because everything is still highly levered and this decision requires players to put more capital at risk just to keep the same bets on. It changes the risk-equation for the worse.
Second because markets are so correlated, inter-related and self-referrential, then changing cost and risk in one asset class will provoke a change in cost and risk in others.
And now there's a growing perception that there are more unknown unknowns out there.
I understand the article. The larger issue is " LIQUIDITY"< or lack there of? How will CME , Or any other exchange if the credit markets " lock- up" again? The markets are flush with ponzi USD, which is why the Euro is elevated. A German mark would be [ TWICE the value] of a euro , and a [ DRACHMA ] , would be 1/8th!
The grocery store sold me a frozen pizza for 50 % more than last week! Commodities are peaking! Social unrest is climbing!
Why are consumer cyclical companies paying 4-6% dividends? I own these companys' They are sucking profits and giving nothing back!
Look @ the contango crude has been in for almost 2 years!
Credit markets were orderly Thur and Fri.
It's hard to believe that none of the big bond market players got a whisper from someone, or even their own intuition, as a warning if this was a Monday cataclysm in the making.
I just stopped by the ATM machine to make a withdrawal for my "black swan" fund. No lines. Actually, no one else. Enough cash for my transaction. Will get more from the branch tomorrow. I'm tired of just getting pooped on and wonder when one of these birds will actually land. Not that I want the SHTF but I'm starting to suffer from chronic "this is it" overload.
Just keep the cash and the metal in your safe. No need to worry. Just be prepared. No-one knows when "it" will happen, or even what form it will take. Some asshole will think of the Stay Puft Marshmellow Man, and there he will be. At that time, you want to have your gold, silver, dollars, guns, food, ammo, water, etc. Don't be fighting lines when that happens.
what do you mean, no one knows? I thought you said Monday
Tyler , it's just too true and easy. I have a jet to catch Sunday, " Someones Time " > outbound>
FWIW? China doesn't give a S..T . Greed is on their menu. I'll be in Singapore.
If anyone actually looked thru the report METAILS are a tiny part of all ASSET CLASS listed.
WTF is WEATHER?
ELECTRICITY is on second plalce.
Hey Bing Bung? WTF do metals have to do with this post? _2 Ohh wait, you are Mud Sharking Copper? Right?
White Boyyyeee.
i can't find anything on the CME's website about this .what's up ? anonymus might have hacked their email account ?
2nd line here:
http://www.cmegroup.com/tools-information/advisorySearch.html#
Former U.S. Senator and Governor...hmmm. Like Cicero, I too fear the future of Rome. Testing... my second post.
Breakfast at Tiffany's inflation study : 1. Cost of a box of Cracker Jacks in Central Park ? 12 cents in 1960 ! $1.75 in 2011 ! 2. Cost of a sterling silver telephone dialer at Tiffany's ? $6.75 tax included in 1960 ! $150 in 2011 ! 3. Cost of tip for your escort when she goes to the powder room at the 21 Club ? $50 in 1960 ! $50 in 2011 ! Monedas 2011 Comedy Jihad Keynesian Conclusion : On a relative dollar cost averaging basis.....the cost of pussy goes down during a recession !
Are you implying narcotics are a hedge against inflation?
You can eat them!
"The cost of pussy goes down during a recession"
Yes, so long as she holds no metals or guns. If she's smart, she'll become Heidi Fleiss durn quick. Queue the music: "Sistahs! Are doin it for themselves!"
I think the rise of organized gangs of women selling pussy is gonna go up, and I have said that on ye internets. It is really the ultimate "physical" to hold. Queue more music "Let's get physical! Physical! I wanna get physicalllll, let me hear you body talk!"
My question is this, once the billions in positions are liquidated, where will the money flow? These aren't the retards that hide money in cans in the back yard, they have to put it to work somewhere. With they go for the "safety" (as ZH stated earlier today, is loosely used) of US Treasuries?
This site will send you to cot charts and everything else. This was early day training for me. http://www.dukascopy.com/
Seriously? Is this really as bad as we're interpretting it? I don't know a lot about this so I don't know what to think right now. Do I need to scrap my weekend plans and start building a bunker before Monday? I thought the world wasn't supposed to end until 2012.
If you aren't prepared already it's probably too late.
Even laying in 2 weeks of stuff is better than nothing. The shelves will empty in three days, most folks do not have provisions to last much past a week.
Aye
Zombies will walk the street and those with no gold will b a new slave class.
ZHer's will rise to the top with our 10oz of gold and silver allowing us to live like debauched rock stars....
its like those pervy scientists in the nuclear bunker in dr strangelove where they are getting excited about carrying on the species after nuclear armagedon
the attractions of this fantasy are attractive to many but not to people with a brain.
when the time is right surplus gold should be exchanged for prime real estate.
just my thought for today.
It is sensible to have supplies if an earthquake, hurricane, or natural disaster occurs. Nothing tin hat about it. Oil can become unavailable which could stop the trucking industry. It is responsible to have some supplies on hand, no zombie road warrior fantasies necessary. I can't believe you have such blind faith that you can always walk into a store and get what you want. History suggests otherwise.
How does one click on some of these avatars to inspect them more closely?
Zoom.
they can pry the gold from my cold dead hands
When I saw the headline, I thought it was talking about the sun. What an interesting coincidence.
Drunk Chileans. Those darn time zone changes. Here is another site for pre fixing.
http://www.dukascopy.com/ it gets better http://www.ozforex.com.au/cgi-bin/interbank-spot-rates.asp
We've known the whole edifice was due to collapse at some point, what was less precise was the exact trigger. I was braced for anarchy due to the August deficit ceiling political wrangle, which was averted only due to last minute agreement to foist the hard decision making on the super committee. Nothing has changed since then, indeed we are continuing on the same course that brought us to this point.
I view these periodic tremors as a pregnant woman's contractions. They now seem to be following one another with more frequency and intensity; the birth of some new era draws nigh.
PUSH PUSH PUSH...but don't forget the mop - this one's going to get messy.
My prediction: stocks up, gold flatline.
Is this it????
If it is it's about damn time!!!!!
The Doc's take on this: CME providing an excuse to liquidate the MF Global clients' positions.
Even those accounts that were successfully transferred, their cash is frozen, meaning unless they can wire the cash immiately to meet the new requirements, instant liquidation Sunday night/ Monday.
http://silverdoctors.blogspot.com/
I saw this up front and copied and pasted it here. Gives credence to what you laid down here (I have not yet read your article):
Uber Vandal
Vote up! 0
Vote down! 0
Holy Moose, this is a rather "interesting" read:
Some former customers of MF Global Inc. (MFGLQ) scrambled Friday to sort through newly unfrozen funds--and awaited word on whether they will have to put up additional capital to back their market bets.
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=20111104...
Looks like no buffer or second chances with this one. Thanks for the link
Brother can you spare $1.x million? LOL
Wizard of Oz is on TBS tonight...for those that are drinkin...smokin... etc...
I'm sure that's a total coincidence....
You DIP SHIT! It's a interbank exchange! You could call it anything you want! Just click on the base currency . Moron!
an interbank exchange
Takin' away the moments that make up a dull day...
You fritter and waste the hours in an offhand way.
What effect is this likely to have on money markets? Any?
I'll humor you. Have fun buying that new swamp boat. I mean that in a kind way.
How am I going to buy a swamp boat? By trading some cows and corn?
With your gold like everyone else
Until the world adjusts, I'm guessing the cows and corn are going to be worth more than the gold for a while.
+1 for your well adjusted perception
So will my Milk Goats and Chickens be worth more then Gold as well?
If you're speaking in euphemisms related to your avatar, then I'd say... yes.
The real subtext of this story is exclusively about government debt.
The CME, the primary dealers, TBTF banks are running interference for the FED, so as to disguise the latest manipulations dreamed up by the subgenius MBAs who finally had to acknowledge that the QE experiment had run out of runway.
In other words, this is a governmental liquidity crisis. It will be 'solved' (temporarily, as always) by a mass confiscation of investor savings disquised as more 'free market' events. (hint:MFG as precursor event)
If Wall Street and the big banks get blamed for the fallout, that will be entirely satisfactory to the TPTB: it's part of the deal for the rake off they get for hiding the true nature of the crime and indentity of the criminals. Besides- beta testing for the imposition of martial law (hint:OWS) has advanced to the stage where everyone is sure that public anger can and will be contained.
That this is unfolding in sync on both sides of the euro-merikan pond is mere confirmation that consolidation of power by the Secret Government has been achieved to the necessary degree to successfully collapse our post-feudal experiment in individual liberties and return us all to the required level of peonage.
Nothing new under the Sun...this is 1720, all over again. Rinse, repeat, sheer the sheep. If the small investor class does not go completely apeshit over what's already happened to them as of this week, they will assuredly be completely destroyed before that Mayan calendar thingy even has a chance to kick in.
"That's the news and now for the weather"
You are like a 1,000 smarter than I am!!! Well said.
It's sad that governments main goal is to perpetuate itself.