Beating a Dead Horse (the one about silver)

There is no constitutional protection for fraud, and that is what I consider this to be since the number is not supported by the company's financial statements. Silver was $5 when oil prices were bouncing around between $12 and $25. Energy costs are a large component of the total cost of mining, and there is a large energy component embedded in the cost of much of the equipment used in mining. This isn't 1990 anymore and you need to update your information and your thinking.

 

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The CME Group manages the NYMEX, COMEX, CBOT, and CME...commodity markets. But other than that, you're spot-on.

 

Dear Heart, stocks indexes are traded as commodities.

http://quotes.ino.com/exchanges/exchange.html?e=CBOT

 

Goldman Sach's Chief Economist, Jan Hatzius, came out a few days ago saying calling for QE3 within 6 to 9 months.
http://www.forbes.com/sites/afontev...ession-as-bernanke-unveils-qe3-europe-doomed/

I agree that the situation in Europe will likely put pressure on commodities, which will be the prerequisite for QE3 since 1) TPTB need asset prices high to prevent their TBTF banks from losing capital on their balance sheets, and 2) QE3 will get a backlash from the people unless it's done to save their retirement plans.

 

My bad...I thought you were talking about the margin rates on individual stock futures contracts. Back in May, CME raised margin requirements for quite a few commodities...silver, corn, oil, etc. I imagine they raised margin requirements for all commodities they felt were unduly influenced by speculation.

Do you feel the Dow Jones Index is currently in "bubble" territory?

 

Bubble implies everyone is buying stocks. They are not. However IMO, there is definitely a Federal Reserve generated bubble propping up the market. All that money printing has to go somewhere.

It's the big scam that has been going on for decades.

 

You may appreciate this video about the "Ben Bernank".

 

I agree, but this is the 30 year bond bubble I believe. Stocks are buoyed by risk appetite, which may be somewhat related to the Fed printing money but I don't think that's where they are putting it. That's not to say the banks they bail out aren't doing so though, but again I think that mostly goes to bonds or else derivatives. If the Fed doesn't keep printing money investors will probably switch to "risk-off" mode which would definitely have an impact.

 

Thank you cloudsweeper.