July 28, 2008

Oil and Speculation

ROGER BOOTLE has written an important column in The Telegraph on the commodity markets. It is worth reading, particularly as it addresses the matter of speculation in said markets -- and is cleverly written, as we can see with this quote, addressing the potential of a commodities collapse:

Mind you, not everyone would be a winner. In such a scenario all of those who had bet on sharply higher commodity prices would lose out. Would some banks find themselves nursing substantial losses on commodities? Believe me, if there's a way of losing money lying out there somewhere, they will find it.

Speaking of the oil markets, it's worth noting the Chinese are going to essentially send their entire country on holiday for the duration of the Olympics. I'm just pointing this out.

Posted by Benjamin Kepple at July 28, 2008 09:29 AM | TrackBack
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