Because in the end the excessive money creation and creation of debt will start a beginning in the faith of people in this system. And when the people are going to loose their faith, all things will go quick...real quick.bailouts4ever wrote:Yes, all brakes are gone. But yesterday I heard a bunch of "experts" say that with the CME "raising" the margins prices would drop next week. What was misunderstood though is that CME unexpectedly lowered the margins...
So what are the implications for this move? If we try to develop a scenario my best guess is that lowered margins work like a fire starter. Lowered margins will attract more liquidity, allow investors to turn a bigger wheel and thus lead to a higher risk of failure. But where else should all the funny money go?
Why though should that end our current monetary system? This move was intended to prolong it. More of the same is the game!
IMO this lowering of the margins implies that there is more risk on trades. A greater leverage is possible. This is going to enlarge the difference between value's and price more and more.....with in the end the confidence of people evaporating...