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To: 2MAR$ who wrote (78442)8/24/2011 10:44:15 PM
From: Hawkmoon  Read Replies (1) | Respond to of 217885
 
If one thinks about it.. raising these margin requirements is a tool that can be used over and over again to pound the PMs.

At the very least it will remove the speculative money out of the PM markets and force it to trade on a "cash and carry" level.

Is it fair.. not particularly. But if we had used increased margin requirements in other speculative markets, it might have prevented other speculative bubbles, including stocks and other asset classes.

Along with this should be a complete ban on naked short selling, hiking margin rates for any short position that exceeds the amount of available margined stock. After all, the whole purpose of short selling is to counter the use of margin. One is only supposed to be able to short against a margined position.

Hawk