Posted on 09/16/2008 7:46:32 AM PDT by TigerLikesRooster
And, of course: “shipping & handling not included.”
meant $10 a barrel, not gallon
Loved that movie.......esp Jamie Lee...........
Not available in NY, AK, HI or PR.........
“It’s not so much fun when you’re playing with your own money, is it?.............”
Yep.
Playing a game of Monopoly(TM) loses some of its relaxing qualities when you have to ante up in real dollars out of you own pocket.
The problem is not speculating, but using one dollar down to buy ten dollars worth of commodity contracts. Since the 1980’s Wall Street has invented leveraging schemes that buy mortgage notes tainted with subprime notes, and in turn another fund uses leverage funds to buy into the leverage funds. Essentially we have a crisis similar to the Savings and Loans crisis. Back then people brought an S&L, borrowed against its equity/assets to leverage buyout an even larger company and use its equity to get another loan and use that money in another leveraged buyout of another larger company until the bubble burst. The key to reform is tighten the regs on leveraging money to buy something very large.
I didn’t know that.
I just noticed they had the same sort of fixed value thing going on.
Thanks.
Who cares what people do? The only thing that ties us to imprudent greed and risk, is the government. I say zero regulation.
Regulation, doesn't stop anything, increases costs, and give a implied notion that some how, some way, big daddy government is looking out for little old you.
:-)
The reason they only have to put down, have, ten percent is because at the end of the day, millions of times a week, billions of times a year, everything closes out at 100%. So, if in this particular market, if 999 out of 1,000 of the traders come through, each and every day, and it is their personal private business, amongst themselves, which it is, who are you, or the government to tell them, amongst themselves what to do?
You, anyone, is free to establish your own mercantile market with your own rules, or buy outside the markets or in markets all over the world.
It's not quite fiat paper. Few people realize that the value of $1 is fixed, under minimum wage law, to 9.16 minutes of mundane (commodity) labor (such as floor sweeping).
Follow that thought to its logical conclusion and you will realize why the russkies have been goading Iran into making a nuke. If we take out Iran = less competition for russkie oil. Iran takes out a chunk of Arab Gulf production = even better for them (since we'll open up the large can of whoop-a$$ after that).
Moscow get high oil, a nuked Persia off it's borders, fingers America, and blames the Jews, and buddies up with Arab thugs and gets a no Jihad deal for it's territories.
>> You can lose more than your original investment.
The only exceptions are land and gold, which ALWAYS go UP.
Even the market value of more "real" physical assets such as lead, gold, oil, rice, corn (and houses) is collapsing, because their apparent market value was driven unrealistically high by the inflation of fiat assets.
In volatile markets such as this, one must be careful not to get ahead of, or behind, the curve. Which asset class is in favor changes quickly and unexpectedly. Applying the strategy that will be a winner next quarter to this quarters investment decisions will bankrupt you.
Stay light on your feet; stay inside the decision loop of the forces hammering the markets.
It’s the first one. :-)
I hoped no tag would be required, but yaneverknow.
Side effects may include dry mouth, dizziness, vomiting, or even death. It is recommended that you discontinue treatment if any of those effects are noticed.
The paper value of land and gold can go down, but at least those tangible assets don’t evaporate into thin air like stocks. I may even plant seeds on my land!
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