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GM May Hit $200 Before Oil Does

by the way SemGroup seemed to have embraced your strategy and are now in bankruptcy proceedings after $3.2bn losses on short oil poistions.

A Tale of Two Industries

the auto industry has fallen victimn of its own irrelevancy: it had lost competitiveness long time ago on global scale and high commodities prices have made their wasteful products even less relevant.
why does anyone need to ride a 6,000lb steel monster going 12 mpg to stay in traffic jam? it makes no economical sense from consumer point of view, but when the sheeple are being cutured that big is good and sweet is sexy, they just drift with the herd. well, cultured sheep are being sheared as well.

The Effects of Oil Speculation

NYMEX oil trading covers 7% of global daily consumption. This 7% includes hedging by interested parties and speculation. At London another 4% of global consumption is being traded. So we have 11% which requires margin of 5% to hold ALL positions open, or said another way, global prices benchmarks are established by couterparties who actually hod only 0.55% of the money necessary to purchase oil. Expressed in leverage this is 180:1.

So is it the specs, is it supply & demand or actually it is the leverage that magnifies 180 times any slight disbalance between supply and demand that moves oil up?

Dollar Hurt by Geopolitical Concerns and High Oil

Dear Kathy,
Not sure if you are yet at FXCM (i am not), but your root cause analysis seems to have betrayed you once more. The dollar seemed to be kicked around by the prospect of pumping more money to support... housing projects for some white folk that too optimistically put themselves in the homeowners group. Either way, the buck got shot and beat up today as well.

The Reverse Wealth Effect

great article! the theory of capitalism is based on the creation of capital and stockpiles of money do not constitute capital. so are the current u.s./u.k. run more or less like the already defunct soviet socialist republics? yes. and there can't be any inflation-wage spiral as the lack of production resources in the above countries leaves the emolyees powerless before the threat of outsourcing even in healthcare. gloomy future indeed.