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Let's try it and see............
1 posted on 05/23/2008 12:47:21 PM PDT by Red Badger
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To: Red Badger

With this congress and administration we a F...ed, just bend over, these idiots in congress have let this get out of hand. Now they blame everyone but the reflection in the mirror.


2 posted on 05/23/2008 12:56:29 PM PDT by boomop1
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To: Red Badger

make a an are but what’s the dif?


3 posted on 05/23/2008 12:57:13 PM PDT by boomop1
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To: Red Badger

“WASHINGTON, May 23 (Reuters) - Significantly raising margin requirements on oil futures trading at the New York Mercantile Exchange (NMX.N: Quote, Profile, Research) would not rein in speculative investors and bring down crude prices, U.S. Energy Secretary Sam Bodman said on Friday.”

Of course it would. Investors would park the money in other commodity futures with lesser margins or stocks or such.

Anyway, why not try it???


4 posted on 05/23/2008 12:57:55 PM PDT by Shermy (Nightmares From My Pastor, A Story of Race and Insanity)
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To: Red Badger

I agree. Raise them way up.


5 posted on 05/23/2008 12:57:55 PM PDT by pallis
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To: Red Badger
You have got to be kidding me, 10% down only?

It was this 10% number that helped contribute to the crash of 29'

Move it upwards of 50% maybe even 75%.

6 posted on 05/23/2008 1:01:48 PM PDT by taildragger (The Answer is Fred Thompson, I do not care what the question is.....)
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To: Red Badger
CFTC distinguishes between 'small' spec trader and 'large' spec trader by the number of contracts held by a trader. If one holds more than X contracts, one has to fill out the infamous Form 50, and one is classed as a large trader.

X is not typically a very large number, either. For NYBOT/ICE Coffee 'C', the figure is 50 contracts. I believe, but I'll have to look it up, that X is 100 contracts for NYMEX Light Sweet Crude.

The point of all this is that CFTC had best be careful raising the margins. They must specifically exempt hedgers and small specs for 2 reasons: 1) hedgers, because they are using the mkt for its traditional purpose, namely insurance, and 2) small specs, because trebling the margins (or bumping them 10-fold, as some want) will chase every small spec out of a mkt right away, immediamente, and the bid/ask spreads will increase equally quickly, thus making it more expensive for the normal mkt users to obtain their insurance hedge.

If the Regress **really** wanted to start fixing the situation -- which, of course, they don't -- they'd start enforcing provisions of ERISA that would chase a number of huge pension funds such as CALPERS out of futures mkts. Pension funds have absolutely no business -- the ''prudent man'' doctrine, and all that -- in dealing in spec mkts.

7 posted on 05/23/2008 1:06:41 PM PDT by SAJ
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To: Red Badger
"I don't think that the margin requirements per se are going to have any impact on it," Bodman said in an interview on CNBC television.

B.S.

There may be legitimate reasons not to raise margin requirements, but it would almost certainly bring down oil futures prices in a hurry, simply because it would reduce the amount of dollars chasing contracts.

16 posted on 05/23/2008 1:19:58 PM PDT by B Knotts (Calvin Coolidge Republican)
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To: Red Badger

Of course it would, you lower the profit margin, the money moves elsewhere, what an idiotic statement to say this would have no effect.

Make the margin requirement on all energy futures to be 75% and raise the capital gain tax rate on this trading as well, and you’ll see the speculative bubble burst quickly.


17 posted on 05/23/2008 1:21:33 PM PDT by HamiltonJay
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To: Red Badger

Do it ,its worth a try.


18 posted on 05/23/2008 1:23:38 PM PDT by linn37 (phlebotomist on duty,its just a little pinch)
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To: Red Badger

You know, ever time we’ve gotten a huge equity bubble, the SEC has raised margin requirements for stocks. In the 1920’s, you could buy stocks on margin the way you buy futures today - on about a 10:1 leverage.

After the ‘29 crash, the margin requirements were raised significantly.

After the dot-bomb bubble imploded, the SEC (and brokers) raised the margin requirements on small, speculative stocks of companies with short trading histories. Now, it is the practice of my broker that they won’t allow you to buy stocks in thinly-traded companies with short listing histories without 100% cash to do so; ie, no margin loan on these stocks at all. Even on big, stable companies, I can get only 50% margin loans (ie, if I own $100K of IBM, my margin based on that position is $50K buying power).

There’s no reason why we shouldn’t raise margin requirements for futures. The people the commodities markets were originally meant to serve (ie, farmers and buyers of farm commodities) are being washed out of their hedge positions by the increasing margin requirements that are brought on by the rapid rise in the price of commodities outside supply/demand fundamentals.


21 posted on 05/23/2008 1:30:39 PM PDT by NVDave
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To: Red Badger

I am simply shaking my head at the mind numbing ignorance being rattled around on this thread...

If you call your cable or phone company for service and end up at a call center in a Bombay suburb, what makes you think for a minutes that the speculative traders are going to keep trading on the NYMEX when you make it more difficult to trade there?

There are functioning commodities exchanges in at least 20 major cities around the world — three in the US alone. Making it more difficult to trade here in some kind of half mast attempt to bring down the price of oil will just move the action to London, Singapore, Hong Kong, or Johannesberg. C’mon, folks — we’re supposed to be the ones that actually think — let the dammed marxists run around raging against the machine...

If you want to reduce the price of oil, try strengtheneing the dollar. An increase to the fed rate from its current 2% to about 8% ought to cut the price of oil by 30% or more within the month.

{Got real quiet in here all of a sudden}


23 posted on 05/23/2008 1:35:41 PM PDT by L,TOWM (If the GOP is this desperate to lose, who am I to stand in their way?)
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