Nowit's just getting plain silly. Following two margin hikes by the CME,one for 9% and one for 10% this week, now MF Global, run by formerGoldman CEO Jon Corzine has joined the fray, and has hiked its silvermargin to $25,397. As a reminder, the latest CME margin is $14,513, orabout 6% of the contract value of $241,750 assuming a silver price of$48.35. So MF Global's is 175% of the CME! It is obvious that everyoneis now hell bent on destroying the parabolic move higher in gold andsilver, which is happening for a very good reason: deranged moneyprinting. Although, as yesterday, we very much doubt MF Global, oranyone else for that matter will hike ES margins any time soon. Afterall, doing anything to stop the Weimar rallyTM in its tracksis treason of the highest degree under Bernanke's dictatorship and ispunishable appropriately. In the meantime, can the exchange just makemargin trading in commodities illegal and move to all cash? At leastthat way all the weak momo hands can be relegated to chasing Netflix andother bubbles, making their eventual pop all the more memorable.
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