It all ends Monday [UPDATED]

Mods - Delete please

srry re-post


sorry about this

Mods - Delete please

srry re-post


sorry about this

Originally posted by Shenon
reply to post by Vitchilo

 

I hope so...i really do. What we´ve seen the last Week was just more of the same "A Plan to plan for an Agreement on a Plan which actually makes everything worse but calms the Market for like 48 Hours" BS...

Let it End!

HERE HERE!
I am also ready for a NEW paridgm.......I am SO AGAISNT that 'to big to fail' crap, as I have had to deal with failed small business ventures and to hell with me from THEIR POV.....
....their house of cards MUST fall for us all to begin to build anew.
We MUST restructure afresh.

Originally posted by Vitchilo

Originally posted by Screwed
Please explain to those of us who are financially retarded WHAT exactly ends Monday?

The whole economic scam that has been going on for the last 30 years.

All the big banks, kaboom. They are way too leveraged... like in the 80-1 range... or even more...

The margin calls will be bigger than the entire world's GDP. They cannot pay it.

I bet the big banks are on the phone right now with Bernanke asking him for hundreds of billions.

edit on 4-11-2011 by Vitchilo because: (no reason given)

On a serious note.. it happens sometimes.. I think nothing much will happen. Its been falsely propped this long with mysterious money from heaven so far.. why not now? The thing that WILL make a difference is if a large portion of people pull their money out of the banks all at once. Not like a nuclear explosion, but more of a bleed to death slowly sort of death.

This sounds too good to be true. I'm sure if it was, the big banks will just get bailed out again and business will continue as usual. Are you really telling me that in a matter of days we're going to see something huge? Nah, I just can't see it. Seems too soon.

I saw this at zerohedge. I'm sure it's notable, but I don't think it's quite the End of Western Civilization. Zerohedge does get a bit hyperbolic sometimes (but it's entertaining hyperbole). But you never know the weekend is still young. Greece could blow, Israel could attack Iran, or we might find more contagion from MF Global. I don't know futures as well as I know other types of trading vehicles so I must rely on the consensus of voices I trust from more finance oriented message boards.

I do know that the market will move in the direction (long or short) opposite of where the most leverage was.

Originally posted by jefwane
I saw this at zerohedge. I'm sure it's notable, but I don't think it's quite the End of Western Civilization. Zerohedge does get a bit hyperbolic sometimes (but it's entertaining hyperbole). But you never know the weekend is still young. Greece could blow, Israel could attack Iran, or we might find more contagion from MF Global. I don't know futures as well as I know other types of trading vehicles so I must rely on the consensus of voices I trust from more finance oriented message boards.

I do know that the market will move in the direction (long or short) opposite of where the most leverage was.

I would bet a few bucks on Iran being attacked before these guys would let the banks fold completely. Why let things occur naturally and balance themselves now since it hasnt been allowed previously.... rhetorical Q of course. .

How many times have I heard that? You know what I realized, it ends for those that cant live without. The rest of us will find ways to move along.

Truthfully, I'm more than ready for it to all come crashing down. We were supposed to care that the banks were too big and important to fail, but they haven't given a @#$% whether my family is too important to fail.

If I am reading this correctly, it isn't a big deal.

It is just INITIAL MAINTENANCE MARGIN REQUIREMENTS only.

AKA Performance Bond

Originally posted by St Udio
so...this means:

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.

the Mercantile Exchange raised the initial margin??? ... by 74% ???

is that what your saying?

well that would take all but the well financed Big Boys out of the futures wouldn't it

silver margins were raised 5 times in one week...then the silver market got contained

the gold margin was raised only once... & has yet to go berzerk & volitile , probably because the CME is holding a margin increase hammer over the traders/investors heads

now all commodities are going to have a 100% margin requirement for a bettor to participate...

wow

i'm gonna play DZZ, SKF, SKK, SDS, SJH... and a few others on monday

edit on 4-11-2011 by St Udio because: (no reason given)

from telegraph.co.uk
sept 26, 2011

CME, the world’s largest futures market, said it will increase the collateral requirements for gold by 21pc, silver margins by 16pc, and copper margins by 18pc.
This means that speculators investing in the benchmark gold futures contract, which is based on 100 ounces of gold, will have to deposit $11,475 to open a position. For silver, the minimum cash deposit was raised to $24,975 from $21,600.
After the initial sharp fall, the gold price recovered slightly to trade $35.38 lower in mid morning trading at $1621.43.
CME raised gold margins twice in August, with such increases are usually related to an increase in volatility, where losses on investments can occur very quickly.
The gold price has also been falling recently as the dollar price strengthened on renewed risk aversion.


Just thought that i would give a little correction

If this goes down the way it appears..There will need to be a really big distraction.
...Obama's gonna need a bigger war.

If a massive shake happens on Monday to the banks, I guess all those ATS experts claiming a CME is not related to earthquakes will be proven wrong -- at least, in one way.

I had to look up the terms as this post sounds so daunting. So, here's the defs for those who may not know the vernacular.

Investopedia explains Initial Margin
According to Regulation T of the Federal Reserve Board, the initial margin is currently 50%. This level is only a minimum and some brokerages require you to deposit more than 50%.


[color=YELLOW]For futures contracts, initial margin requirements are set by the exchange.

Source

Investopedia explains Maintenance Margin
As governed by the Federal Reserve's Regulation T, when a trader buys on margin, key levels must be maintained throughout the life of the trade. First off, a broker cannot extend any credit to accounts with less than $2,000 in cash (or securities). Second, the initial margin of 50% is required for a trade to be entered. Finally, the maintenance margin says that an equity level of at least 25% must be maintained. The investor will be hit with a margin call if the value of securities falls below the maintenance margin.

Source

reply to post by Vitchilo


You know Vitchilo we have been at this junction many times since 2008, perhaps more than many can even dream but as usual the cry wolf doesn't materialize.

Why?

Because the fat rats already have one step ahead to make sure that their wealth is untouchable, even when its always at the expenses of the nations working classes.

So, I will have to sit on this one once again, at this time and after seen the Greek drama unfolding seen how other nations can dictate what a nation can and no do,how nations in with power get into other nations to destroy their economies for the private interest ruling the world and most of all after the philosophical post of our friend, Dangerdeath in the market data thread it actually have hit dip inside me and I am coming to the conclusion that we are nothing but pawns on the elites gambling game.

in other words a margin is a loan if it is called the owner of the margin has to pay the issuer half of the loan back pay more in or sell the margin off. which can lead to a systemic shock in the trading world.Margin

To be fair to Zerohedge, they are not claiming the end of the world come Monday, but given the data they have, assess that there could certainly be some huge issues breaking in much of the same way as Lehman in 2008. I read the article as though they are putting the information out there for consideration of the possibilities, as grave and catastrophic as they may be. Good article imo.

Here is mainstream media confirmation of the Zero Hedge article: in.reuters.com... And here is another blog that talks about what this will mean to traders: traderdannorcini.blogspot.com...

reply to post by bakedbluedevil


I'm a real estate guy, so anyone feel free to correct me. The way i understand it is that, you can control $1,000 worth of stock for only $500. If the maintenance margin is 25%;and, the stock falls below $250.00, then you get a margin call and have to add more money to keep your investment; otherwise, the stock is liquidated.

If the CME raised the maintenance amount; this would put many in a position of having to add money to their position, when liquidity is scarce.

Og

Originally posted by Advantage
... and look, just run around in circles and scream...

That's what I do best!

But seriously, I do have some (not much) gold lying around as well as I've already taken out all the cash I have. Of course I'm in Europe and it probably won't matter much seeing how my cash will be useless anyways.