“It’s like discovering plutonium by accident!” -George Costanza

A Few Speculators Dominate the Vast Market for Oil Trading
How is speculation driving up the price of oil? Ask Goldman Sucks (You could ask Enron but they’re dead, yet their legacy lives on!). [Jesse’s Café Américain]

“Regulators had long classified a private Swiss energy conglomerate called Vitol as a trader that primarily helped industrial firms that needed oil to run their businesses.

“But when the Commodity Futures Trading Commission examined Vitol’s books last month, it found that the firm was in fact more of a speculator, holding oil contracts as a profit-making investment rather than a means of lining up the actual delivery of fuel. Even more surprising to the commodities markets was the massive size of Vitol’s portfolio — at one point in July, the firm held 11 percent of all the oil contracts on the regulated New York Mercantile Exchange.”

Ay caramba!

Even a broken clock is right twice a day
Myron Scholes (Long Term CapitalManagement) predicted “the yearlong credit squeeze will inflict more pain on the world economy and financial markets.” [Bloomie]

“The crisis is ‘not over and I’m not exactly sure when it’s going to end,” Scholes said today at a conference in Lindau, Germany, featuring 14 Nobel laureates in economics. McFadden said in an interview ‘that as the crisis continues you will see a lot of business failures.’ “

No, ya think? Way to call ’em as you see ’em, Mr. Nobel Laureate. Even I could see this coming 2-1/2 years ago, and I ain’t got no formal ecumenical edumacation in the arts of debt money thievery intelligent markets highly efficient markets dollar cost averaging borrowing money because I don’t have any today to buy things I don’t really need to impress people I don’t even know financial engineering alchemy.

Myron, if I may be permitted to use the familiar tone your laureate-ship, I think this guy is wise, you should listen to him:

“It’s not over until it’s over.” -Yogi Berra

Oil, Dollar Lead Commodities Index Toward Biggest Weekly Gain in 33 Years [Bloomie]

Jim “commodites get me hard”  Rogers interview [Money Morning]

America: playing musical deck chairs on the Titanic since 2000.


4 Responses to “It’s like discovering plutonium by accident!” -George Costanza

  1. I am actually pleased to glance at this weblog posts which includes lots of
    useful information, thanks for providing these statistics.

  2. Hi there! This is my first visit to your blog! We are a collection of volunteers and starting a new initiative in a community
    in the same niche. Your blog provided us beneficial information to work on.
    You have done a marvellous job!

  3. baie acai says:

    At this time it appears like Expression Engine is
    the preferred blogging platform available right now.
    (from what I’ve read) Is that what you’re using on your

  4. cialis prix says:

    My relatives always say that I am wasting my time here at
    net, however I know I am getting know-how everyday by reading thes pleasant

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: