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ventilation will occour

BigMoneyLewisBigMoneyLewis Posts: 194 ✭
in Precious Metals
What do you think was meant today when the Chinese said in response to those that raise margine requiements
that "ventilation will occour' to those directly responsible. ? What do you supose they meant by that statement ?
I am at a loss as to what exactly that means.

Lewis

Comments

  • derrybderryb Posts: 36,793 ✭✭✭✭✭
    Link to chinese response?

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • jmski52jmski52 Posts: 22,822 ✭✭✭✭✭
    Didn't Al Capone make some sort of remark about ventilating one of his adversaries?
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • derrybderryb Posts: 36,793 ✭✭✭✭✭
    image

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • JulioJulio Posts: 2,501 ✭
    I was thinking ventilation was sorting out the serious buyers from the not so serious???
    image
  • vannvann Posts: 318
    Maybe they meant that retail investors typically use leverage to buy paper contracts to go long in commodities like gold and silver. If the margin requirements go up (like they did 6 times in one week the last time silver went from $50 to $32) they get squeezed out and have to sell the position. Precipitously falling equity prices (like today) would trigger margin calls, causing retail investors to sell what they can (including precious metals) to raise cash in order to avoid liquidation when then happens. After this occurs, the only people left in the market are those not using leverage or with strong positions in cash until new retail investors come in.
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