Is what CME did to silver margin requirements manipulation?

Survey Results Posted May 16, 2011

 

 

 

Do this quick survey, I  wanted to see other Traders view on this is. If you want to comment on it send us you're comment in blog & we'll post any interesting ones.  Click here to take our Online Survey

 

 

Was a friend's house yesterday , he doesn't trade much but asked me an interesting question on the stock market .He said isn't what Bernanke has done with QE1 and QE2 & what the CME did with silver margin changes,  Manipulating the markets & the price of silver ? – I  had to agree with him , then he said " if anyone else had done that would they not be investigated by the SEC ?"  He was actually quite funny in saying that since CME & Bernanke don't really have to answer to anyone for any "manipulation" that they may have caused that they are like a type of "mafia" with no repercussions on anything that they do ( good or bad).. Although that may be stretching it a bit , he did have a few valid points about manipulation and if that had been an individual or firm that caused those dramatic moves then someone would be held accountable (unless they are Goldman Sachs ($GS) . Guess since only speculators got hurt on that silver drop then its not so bad , is it?

I guess we will never know what would have happened to markets if Qe1 & Qe2 were not introduced. Would we have had a total market collapse and/or major banking crisis ( as many have suggested)?

We are always telling the world about the North American "free market system" but we've seen how easily it is to change that when it doesn't work out.

We've seen it recently with the Housing industry, Auto Industry, Airline Industry, Interests Rates and now Silver. I'm glad I've done well trading the markets due to this volatility we've had but when the government can see how easily they can correct a commodity  going up on speculation ( like silver) should they apply it to oil or other commodities? I'm sure most people would like to see oil prices down and gas prices lower so is the easy fix just to do a continued fast round of increases in margin requirements or should the market ( supply & demand ) still determine a fair price on oil or any other commodity? Oil has been trading pretty crazy lately with the Middle East problems , US $ moves so we've relied less on supply/demand anyway. But maybe no one would be too upset (except for the Saudis , OPEC and the oil producing countries ) if oil was manipulated down. I still have faith that "supply & demand" will eventually be the determining price factor on these commodities but amazing to see how the CME was able to correct that monster Silver run with a few strokes of the pen.

Do this quick survey, I  wanted to see other Traders view on this is. If you want to comment on it send us you're comment in blog & we'll post any interesting ones.

Click here to take our Online Survey

I'll post results to this survey later today on here

 

Stockguy22

 

Posted in Charting & Analysis, Commentary, Futures