Tuesday, May 10, 2011

CME to Try Their Margin Hike Trick on Brent, Crude Market

Some genius at the CME has figured out if you hike margins to the moon, the evil commodity speculators will be forced to liquidate long positions to meet margin requirements.  After last week's unprecidented 5 successive margin hikes in silver, The CME Group has now turned its attention on the other hated commodity, oil.  
The CME Group has announced a 25% margin hike in both brent and crude.  Expect margin hikes 2 and 3 tomorrow, and 4 and 5 by the weekend.  We're waiting for the accompanying propaganda to arrive.