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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