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Soaring Financial Vol Leads CME To Announce A 33% Margin...Cut
Because while soaring volatility in gold and copper, not to mention silver, results in one after another margin hike to "cool off the speculators", when it comes to financial stocks, especially in the "tail wag the dog" variety where the synthetic drives the stock price, a surge in vol means a cut in margins, or 33% to be precise. As of minutes ago, the biggest futures exchange just cut XAF margins by a whopping 33%, exploding vol be damned, or actually, because of it. The CME would be even more delighted if clients were to pledge their gold as collateral, especially following yesterday's expansion of gold's marginability from $200 to $500 million. So just in case anyone missed the message from today, when fins plunged then soared on a rumor, the CME would be delighted if you could repeat all of that but this time with 23% more margin. Expect more margins cuts, this time in ES offset by margins hike in all other instruments, especially of the public enemy #1 variety such as precious metals and crude.
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All your gold are belong to us.
I'm hurting, but not selling.
Bond margins down, metal margins up, rinse, repeat. Enjoy the low prices and keep stacking. QE3 is just around the corner, as soon as they scare everyone sufficiently.
This teaches ungrateful shorts for betting against AMERICA. I and many others have been long financials and this ensures we don’t have to worry about pesky margin calls. The bears like to gloat whenever they are on the winning side, but it is always the patient, principled investors who have the last laugh.
I sure hope you're kidding. In fact, that's the only hope I have left.
That is stupid. Shorts create a bid when they cover, making no-bid situations less likely, and thus tempering rapid declines.
Not that you care about that, as you are simply trolling.
Oh yeah? Then how do you explain the consensus on the short selling ban by top European politicians? Top economic advisors in France, Belgium, Spain and Italy all agree that shorting banking stocks is harmful, unpatriotic and despicable.
LOL!! Brilliant.
C'mon, he let it slip on this one. Everyone's laughing because he's obvious when he usually has "nerdy libertarian anarchists" mad enough to write paragraphs. That's when he's at his best.
Right?
Absolutely. MDB makes every day just a bit funnier.
And what's with the negative votes? C'mon, laugh, people.
That boy good... He good. The dings prove it.
Fucking hilarious - you're posts always crack me up - very deadpan. Well done.
His green dollar avatar must represent the constant sarcasm he emits. No one with any sanity could be so insane.
Shorting bank stocks will bring the ponzi scheme conjured up by banksters to push wealth up the pyramid, to a quick & well deserved end and with it a possibility of building a system that will bestow health, happiness, freedom & liberty on everyone on this planet.
LOL, I read despicable with my yosemite sam voice in head...
daffy duck showerhead?
daffy strauss-kahn.pic
HammyWanger!!!! Where have you been. This has to be satire, nobody can possibly be that stupid.
+1 for satire
brilliant, alittle dry, but good stuff....
Nevermind, you can't be serious LOL
Dude, you didn't catch the strong scent of sarc? Seriously?
I am well aware that he is a faux troll. But I engage lies no matter the source, especially if they are teachable.
*deleted* due to bad taste.
Proper self-governance... bitchez.
Well said MDB - your guidance, insight, and leadership and the only hope for turning around these un-American financial terrorists on ZH. Keep up God's work there MDB!!!
I must admit MDB does make ignorance look blissful.
i just think he's hilarious....
He gets paid for every reply to one of his troll posts. So keep the replys coming, each one is one more dip into BofA's reserves.
thanks, fred, i didnot know that...
does he get paid for sarcastic replies, too...?
added to shorts...suck it cme
Now that's the spirit!
Poodle bites (come on frenchy) Poodle chews it (snap it)
Don't start using our band's name without permission either bogus. The Ungrateful Shorts will sue your ass. Chafe them too. Irritate your roids. The patented drip mechanism will tell all your intimate friends you have the clap too. Tie the string right and they will give you blue balls, to tight, no balls. They are American union made and give you the choice of what sex you want to be. And no, we're not going to give you a pair, you have to sign the disclaimer about nut lopping and the non soothing irritation guaranteed by both our shorts and your drooling.
...not a speck of cereal (nothing but the best for my dog)
How have the last 10 years worked out for you MDB? Might as well have put it in a no yield checking account.
You ignore that capitalism is based on short selling and naked short selling. Without there would not even be Dollars.
MillionDB,
You are fantastic. My new favorite.
It won't be so easy to laugh with a rope around your neck!
Agreed, celebrate the sweet deal you are being given. Just curious, could these asshole's intentions be more obvious? This is surreal, you couldn't put this shit in a movie it's so sideways....wow...
I don't know why I am surprised, but I am. A little.
i'm still buying... though i wish i hadn't bought a bunch a month ago... d'oh!
THIS WHOLE MOTHERFUCKER IS LAUGHABLE!
GAME PLANET SPLAT!
The curtain has been pulled back, exposing the hideous financial manipulations for what they are.
Yep, these prick faces couldn't be any more transparent.
BUY STOCKS, WITH BORROWED MONEY IF NECESSARY, JUST NOT PRECIOUS METALS OR COMMODITIES. OBEY OR SUFFER THE CONSEQUENCES
You can still see for about 15 seconds after your head has been chopped off. I know you read these posts you croked C*CK Suckers. Prepare to be hung with your own intestines.
CME COCKSUCKERS!!!
The action in the RUT is pretty fuckin' bonkers too.
You mean the 7% rally on the RUT in final 45 minutes (601-->649)??? nothing abnormal here...happens all the time. Move along.
MORE LEVERAGE and we can see 10%, 15%, or 30% daily rallies instead (given the news of a real planned rumor...or is it rumored plan?...not sure which to rally on now)...coming soon to a "market" near you.
I am wounded but not slain, i will lay me down to bleed a while and rise to fight again mutherfuckers! Don't touch my fucking gold
I'm sick to my stomach that this is how democracy dies, how capitalism is tamed, how fraud is made unfraudelent, how theft is made legal, how America and a naive kid who grew up loving her fade to dark.
Those who tell the truth are marginalized and either branded insane, unpatriotic, or simply don't have phd's...I guess this means we have much further to go before American citizens are ready for a real change and the light of a paradigm shifting movement.
We don't have far to go to at all. Real change is going to be visited upon us, ready or not.
Chump,
I believe you and I are ready...but we are out on the lunatic fringe. Soccer moms and dads (my job on the weekend) haven't a clue what Ron Paul, you, or I are talking about and honestly they'd prefer we stay away...we scare them as we suggest their world is a Matrix like illusion whose time is (nearly) up.
Then again, ZH'ers are ready for the change 'cause we've been stacking, paid off all debt, stock piled all neccessary food, security, etc. For average folks they have none of this and all wealth is in paper...gotta scare the shit out of people who've worked hard but will realize they are standing naked heading into a blizzard.
Exactly. That's the struggle I'm working with on some close family members. They admit we are hitting the wall, and admit that an implosion in government bennies is the ultimate result. But they just can't/won't make that next logical step: what happens when a mass of people dependent on government checks finds themselves facing literal starvation? "What would you do if you and your children were starving," I ask. I almost feel bad for them as they perform mental gymnastics to keep from facing the answer to that question.
Well, I know what I would do, hence my frenzied preparations. There is a very thin veneer of civilization held in place by working electricity and entertaining distractions. We are about to see the true nature of our friends and family, and I'm guessing that will be the most frightening aspect of this shitstorm. Best of luck to you and yours, and my ultimate hope is that I happen across some ZHers in the rolling future. We need a secret handshake or passphrase or something.
> Those who tell the truth are marginalized and either branded insane
I detect a bit more chutzpah in our elected officials now that there are people in the streets. Like the congressman who told people to take their money out of BAC today.
http://www.myfox8.com/news/wghp-triad-congressman-proposes-easier-bank-s...
Occupiers, your efforts are reaching wider than you know.
This is the Fiat Monsters setting up a "Cash 4 Gold" kiosk in the Market Mall ! All Lemmings get in line and have your Gold ready for their buyers ! Monedas 2011
Margins are made up of both volitlity and contract size in $. With prices so low the contract size is also down. no news here. The volitilty should have offset some of the contract size decrease though.
And this correlates to raising margins on pm's as prices dive how...? It is news when different asset classes are treated differently in a falling price environment.
hey, where's that dipshit spokeswoman to explain this?
I can't understand any of this unless cartoon bears explain it to me.
yes really...where the hell are those bears...hibernating already??????
Damn,the commenters on this thread are really on tonight!
But the cartoon bears aren't backed by anything.
the whole board has had me rolling tonight
this article in particular
No more bears...only honey bagders who don't give a shit <snap>
http://www.youtube.com/watch?v=4r7wHMg5Yjg
Time to set honey badgers loose on the Fed, DC, Wall Street...
Because financials are backed by the dollar and gold is backed by phd's white paper's gone terribly wrong. I agree, bring her back!
CME is part of the master plan.
You are kinda right, this is part of B.Masters plan...
OK fellow Masons you have your marching orders, it's safe to go back in given the 33% Bat signal -- all the brothers back in, just don't tell the sheeple (wink, wink) see you at the pay window.
Hm...maybe these guys really are trying to crash the system.
Is there any aspect of the U.S.A. left that isn't corrupt to the core?
NYC weed delivery services.
My guess would be that a lot of "pinching" goes on with that, for sure.
Then again, perhaps this really isn't the same universe that I grew up in.
not at all really. they are pretty spot on time after time. it's top notch service...or so I've been told...far be it from me to partake in such nefarious activities.:-)
Actually, they "roll" it. They take the buds and shake them around on a screen so the outside resin glands fall off into a container below. This is really good hash, and a loss of probably 5% of the plant that produces most of the best part of the high. So the weight difference is not as noticeable as pinching but the high is certainly somewhat degraded.
The person who gets the hash is very happy.
It couldn't be any worse than the sales taxes, excise taxes, "value added" taxes, licensing fees, permit fees, corkage fees, etc., that are rolled into the price of everything else we buy.
The youth. They are the real heros.
Good, they are going to need to be.
Just to survive the shit-storm we've brewed for them.
a reply to FunkeyMonkeyBoy.....I believe if you look real hard there is a small group of people in the back of the room, forgotten and despised, that still have intregrity.
I think the guys at the CME ate my acid.
I now officially support the Wall Street Rally!
I suspect they will have no reservation announcing another Record Fat Bonus year....watch and see...."
"Whatchya gonna do?" attitude.
You do? Have you read their demands?
http://occupywallst.org/forum/proposed-list-of-demands-for-occupy-wall-s...
Pukes
I agree with one out of thirteen of their demands.
Subsidies need to go away. Including the oil industry.
OWS, Fail.
That's not a birthday party in a fast food restaurant, it's a REVOLUTION baby!
What's required for a RICO action?
A legal system that works. So...you can pretty much get that idea out of your head right now.
RICO is reserved for those mean spirited pro-life types.
It doesn't apply to other criminal types.
RICO is reserved for private citizens that weren't smart enough to pay off the government.
As with all interventions "this too shall pass" as folks realize that the color of the wallpaper still isn't going to kill the termites....
OK so its f####d up. We know its rigged.
Think its time to step in and buy some banks?
Depends, how do you feel about buying a seat on a plane that has had its wings ripped off in mid-air?
This move will exacerbate volatility and ultimately lead to a much greater crash.
Agree, it makes me wonder why they do it. I know it makes it easier to bet pro-bank but why do that if you think the odds on the bet are bad anyway. Does this make it easier to run their short squeezes? They have to know the end point stays the same.
Don't worry, I'm certain the CFTC and SEC will launch an immediate investig...ahhh, shit...nevermind.
I guess the CME management was about get a margin call that Jamie Dimon promised them would never come.
It's ok when silver and gold start rocking, CME website and phone lines will be down so nobody can take delivery ever...
SWAT Teams in St. Louis Protecting Bank of America; Refusing Customer Withdrawals
http://www.youtube.com/watch?v=Db_P0wHsSz0excellent video
that's why their website has been down/too slow, so people won't move the money electronically as well.
Actually, they tell the people waiting to get into a BAC branch they can't come in and take out their own money--with SWAT teams no less. Then, they tell this kind gentleman that he has to pull his money out "online." WOW! And anyone think the online BAC website is down accidentally? What a catch 22.
BAC is playing it out....letting peoples anger calm down, to hopefully stem the outflows. What a total clusterfuck. anyone keeping money with BAC should have their fucking heads examined.
I am not a depositor but am a credit card holder. They have no money of mine but I have their's :)
There are reports that this video is actually from a BofA-specific protest back in August, and not of something that has occurred within the past couple days. At least one blog is trying to run down the details to comfirm, but the claim it's old footage looks legit, this appears to be the source footage that's longer, and was uploaded in August: http://www.youtube.com/watch?v=2NY2tYpgoYA
Nothing surprises me anymore...I feel for finance professors attempting to explain to students how regulation works in our "free" markets.
I'm curious what's being taught in high school government now. "The Fed prints the money so the Justice department can sell weapons to the drug cartels and the President keeps a hit list..."
I have two business degrees from two different large state universities and none of the topics in economics or finance ever discussed the possibility that government is the problem and not the solution. Granted both institutions were partially funded by tax dollars but I am not certain if attending a private institution would have yielded different results.
I'm a private college product with an Economics degree and a bunch of other letters behind my name these days.
The private college that I attended was big on the Chicago School - Milton Friedman etal. I appreciate John Cochrane today from there.
I have no degree what-so-ever in economics from any private or priveledged "higher source of learning".
This is the reason why:
1) I have a shitload of common sense regarding the current economic situation;
2) I am not employed by Goldman, Fed, or Treasury;
3) I don't resort to "schools of thought" or any other failed lemming teachings of Summers, Friedman, Krugman, etc;
4) I have silver, seeds and MRE's...not Treasuries.
Fine - I understand.
You didn't hear me say that I'm an advoate of "advanced learning" just a product of it.
Check out John Cochrane...you'll like what he says.
Keep the silver.
I am doing the same.
It's explained as free of regulations this is what happens, ergo, more gubamint.
More time is being allocated to subjects like persons sexual orientation, black studies (yes, that's what's going on here, not my idea or criticism) immigration policies, social justice, etc., etc., etc.
Seems that the whole idea of an education... broad exposure to the humanities, literature, philosophy, economics, the great ideas from which people form relevant thoughts, has given way to (OMG!!!) A Proper Social Indoctrination, Preparing Our Youth to be Good Atheist (And note as in the sense of the Gubamint will set any considerations of moreals and ethics, no other source necessary, which is an underlying assumption of statist entities... again, not my position, I'm just reporting, answering the question...) Statist Gubamintal Supporters of the Big Federal Family, especially if they be so wise as to vote Democratic.
And that's my kids telling me that.
You're not insinuating that votes are for sale are you????
Ah..... well... ah... I mean.. uh..
Weeeeelllll, in this case, not exactly.
More like political indoctrination camps. There certainly is no sense a pattern of a classical education where the great thoughts of man are given exposure with the idea that an educated individual thereby has the raw information to make informed decisions with some respect to civility, ethical and moral principles.
Nope.
Pure Downright Fucking Indoctrination.
Even Worse, Under The Official Guise of Education.
The purchase of votes, concepts of bribery and extortion are presented later in life in the form of the Democratic Process Interwoven With Free Speech in the Form of Campaign Contributions.
Hey.... What's this bug I just killed buzzing around me? I swatted it and it was made of mechanical parts! WTF! Lots of teenie tiny mechanical... Honey! Get the door please!
sorry, but I don't understand how this happens, about the organization, clearly their orders are from somewhere else (the fed). we need the financial system to be deleveraged, but in truth since I bough a lot of the vanguard financial etf
you gotta love it, borrow from the federal reserve for nothing, and throw it into the financials with decreased margins (WTF). end the fed, end bernanke, I want to see the minutes of these meetings where this stuff is decided. you are supposed to be getting margin calls when things drop, not lowered margins.
That's right dcb.....welcome to crazy town
To quote George Carlin, "It's a big fucking club, and you're not in it."
The problem is there are WAY to many people that think they are in the club by trading with it.
And THAT, good sir, is precisely the business CNBC is in. Convincing the poor schmucks that are being led like lambs to the slaughter that they are actually part of some investment class that is seen as something other than a financial food source for the banks and financiers.
You mean I should not follow Jim Cramer's recommendations? Har!
They need to raise the margins on gold and silver. They rallied at the end of the day... too much goddamn volatility in those commodities.
/sarc off
SHORTS aka REALISTS:
A quote from the great Jimmy V:
"Don't give up, don't ever give up"
Do not go long Financials! You will be smashed much harder than today. Fade the BS!
Considering there is no volume or open interest, who cares??
What is the date of that CFTC hearing later this month?
Listen to me folks: the whole thing can be solved if we just start enough of a grassroots effort to stop playing ALL paper market games. You need to lead this ZH. Stop talking about shorting this, compression trade that. It plays right into the master plan. you need to start educating the masses that no trades are good trades....that a trading less market is the way to take these pigs down.
Otherwise, it alllows the puppet masters plenthy of sting to tug and pull. It's not until you take away the string--the trading of any kind--can the puppets take charge of their own destiny. Until then, we will all continue to be royally fucked beyond belief.
The only good trade is fiat currency for precious metals. Otherwise it's just feeding the beast and sucking money out of the system without contributing anything of value just like the HFT algos and the fractional reserve bankers who are using our own money against us. Unless people grow some integrity and stop doing the same thing our oppressors are doing we'll just keep digging our own grave. I'm not holding my breath that people will choose to do the right thing instead of giving into greed.
Right on, Jack. Agree completely. People will just keep being the sucker at the table. Too fucking bad.
33% smaller margin means that C, MS and BAC will go to zero 33% faster!
If commodity prices are unstable, equities will still be short once the volatility eases i.e no more meltups.
It's actually a very bearish sign, commodity/metal vols decrease and Financial vols increases = short
Need to check out NYC.
http://www.livestream.com/globalrevolution
Incredible - Is this a brainwashed NYU class reciting in unison?
Marxism on the rise?
Don't get so down on "da bankster" ZH that you replace it with parrots and their masters like these.
BAC run, bitchez.
http://www.youtube.com/watch?v=Db_P0wHsSz0
The real longs are loading up with physical metal. The speculators are being driven out to our benefit. Whooopeee.
No, the real longs own gold futures, when it suits them and im talking 100's if not 1000's of contracts.
And, just in case you haven't heard, the Physical price is derived from what the little computer screen says not the Gold Fairy Twitter network.
Gold is already being sold well below so called 'spot' anyway, there is not a single chip manufacturer paying 'spot' price, they are paying LESS, and for the most part, those folks are the ONLY ONES that need gold.
Gold is money, my ass, how is your stable money that was worth $1900 a little while ago and now is worth $1600, IF you can find someone to buy it from you for that, and if you can, you won't for much longer.
gOLD is money like AAPLE, NFLX or house mortgage notes are, they are not. AND one last thing, gold is money is like two old people fuckin, how do old people fuck?? they dont
peace bitchezz
Wow, what took you this long to expose yourself as an idiot?
My guess is that it was his use of the word "manufacturer". For someone accustomed to using monosyllabic grunts, a five-syllable word had to have consumed an inordinately large number of his brain's processing cycles.
I discovered whos been calling margins on PMs, CME's managing director of metals products--Harriet Hunnable. I should add that she began her career with NM Rothschild & Sons where Blythe Masters worked as well. So you have Blythe shorting and Harriet calling margins. The dynamic duo.
I'm certain it's just a very strange coincidence. I mean, if they were "coordinating" it would be illegal. What are the odds of that in this balanced, price discovering, capitalist, and free market we have?
ok, I just urinated on myself writing that...
I long for free markets! Not to mention fair markets.
Have you seen any lately?
as you read this, please keep clear of any sharp objects, firearms, or anything else that might lead you to do something regrettable....
http://economictimes.indiatimes.com/news/international-business/us-economy-stronger-than-you-think-jp-morgan-ceo-jamie-dimon/articleshow/10224610.cms
1929 margins worked out so well, crash. repeat. crash, repeat. crash repeat. Can we short the CME?
Universal market speak translator............
http://www.youtube.com/watch?v=JuedGDhkQKg
Gonna hafta ref*ckulate the market.
Based on Ricky, the best market speakalator.
http://www.youtube.com/watch?v=Jfq3c4Cf1Fs&feature=related
Teh Shit Blizzard
http://www.youtube.com/watch?v=Pvm-n6gwPCY
What's a rigged market?
Wait until people figure out the economy is rigged. The Wall St protesters suspect it, but they don't know enough to confirm it.
Free markets at work!
Straight from the MW propaganda machine yesterday.
More physical gold to serve as collateral: CME
Want your money out of a Bank. Any bank?
Tell a 2nd banker, I'd love to give you some money, but these bastards have it all.
Takes about 10 minutes.
The die is cast. They propose to undermine inflationary commodities with an essentially inflationary twist and CME margin rate changes. Its as if they're saying the economy comes primarily out of the banking sector, and has nothing whatsoever to do with the commodities.
Its a little like Farley Mowat's 'The Boat Who Wouldn't Float.' Mowat had procured a sailing craft and ventured to restore it. Once refurbished, was struggling with the onboard engine, so decided to unfurl the sail. A little while later, the onboard engine did actually start, but in reverse, so the boat sailed out of harbour backwards under sail, against the wind.
I made long term EUR/USD prediction (2011-2017) to see if there is some support t her for ideas to understand better the default/devaluation ( Europe) debt deflation/default ( USA) sequence I have been looking at lately.
Here it is with explanations:
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&p=34394#p34394
Here just chart:
http://www.tfmetalsreport.com/comment/66127#comment-66127
It does support debt deflation in the Usa during 2012-2014 recession. QE3 won't change anything, perhaps delay deflation till June 2012.
Massive short squeeze coming!
This is exactly why I will never fucking participate in the equity markets again.
Never fight City Hall.
At least if you want to survive in equity trading.
It does not matter the margin requirements of ES as ES trades as a function of basically all that is SPY, stocks do not follow ES so your argument does not even exist!?!????? AND if ES were to run away bc of more 'leverage' being applied, it will be an easy short, or long, depending on how out of whack it gets because as Tyler has shown, under CURRENT conditions ES compared to whatever the hell that is he compares it to gets out of line now and then and then reverts back to a mean correlation.
Margin hikes on crude and gold? Good, they should hike gold to the max and crude? Seriously? IMO you should be banned from trading CL unless you prove you are able to and willing to take delivery, either that, or hike its margin to the max too. Hello $1.50 gasoline. UNTIL THEN THOUGH, its what I trade on a daily basis and do damn good at it too.
And one more thing, for those here too stupid to realize things without a Tyler Durden posting telling them something has happened, the reason the markets took off this afternoon??? WAIT FOR IT. better yet, go look up the dollar index and learn something.
Todays rally confirms a massive selloff. Stare at a diamond chart..
It was a Bank Of America Bailout/safety net. QE 3,4,5,6,7,8,9,10,11,12,13,14,15 will be mini market manipulations. If I was the federal reserve and Jp Morgan/Goldman Sachs I would be doing the same. I apreciate the effort. A 4% market swing is not possible with these fundamentals. In less then 60 minutes??? Who is buying Bank Of America???? And all the other financials in this environment? Enlighten me.