The Chicago Mercantile Exchange (CME) raises margins on commodities again, Excerpts:
The Chicago Mercantile Exchange (CME) is continuing its assault to stem the speculation on commodities that threaten to go parabolic due to the Fed's QE2 and subsequent inflation.
Last week, silver took a plunge immediately after the CME raised margin rates 30% from $5000.00 to $6500.00, and it is affecting other commodities such as copper as well.
Tyler Durden from ZeroHedge says:
Look for a second round of imminent margin hikes in cotton, sugar, coffee and wheat, as the exchanges are suddenly very concerned about what retail margin collapses may mean for the non-existent wealth effect.
Change is afoot, friends, and all sectors of our (and the world's) economy are fluid. Watching CNBC will be so much more exciting in the coming weeks, so stay tuned!
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