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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (119854)	11/4/2009 10:37:59 AM
From: Skeeter Bug	Read Replies (1) \| Respond to of 132070

Knighty, the waterfall has to start somewhere. truthfully, the only difference between pritchard and the entire state of CA and many of its cities is that 1. city government has a grasp on reality. 2. city government can't/won't paper over their financial position. it is unfair to solely focus on pensions, though (and yeah, Mish's $12/hr pay cut offer is cold blooded, even if he's technically right that they could easily fill those jobs at that rate). while a big piece of the pie, there is still a lot of pie left to go after, too. the states are going to have to cut back in a massive way and that shoe has yet to drop. increasing withholding from pay checks is only a way to paper over losses until CA can issue IOUs next year. then what are they going to do?

To: Knighty Tin who wrote (119854)	11/4/2009 11:00:17 AM
From: Pogeu Mahone	Read Replies (1) \| Respond to of 132070

Sometime between Aug. 15th and today, a subtle but gigantic change took place in the silver futures market. The initial margin requirement to purchase silver futures contracts dropped by 50%. I'm sure you all know well, the margin requirement is the minimum amount of money you need to purchase a silver contract. The numbers went from: 5000oz contract: $12,000 to $5000+/- 1000oz. $5,000 to $2,300 +/- This means the clearinghouses are in cahoots with the big money players in the futures pits. One year ago these smaller requirement numbers were where they are today. During and coming out of the commodity crash, the requirement doubled....forcing even more selling. I think this is an indication that big money has placed their bets in the silver market, and now they're opening up the game to the "mice" again. When they all flood in, they will be stomped, run screaming for the hills, and get hit on the downside with margin calls and an increase once again in the minimum margin requirement via the clearing house. What does this mean for us? I think it means a nice, major move, followed by another scary move down. Thoughts??