Posted on 02/20/2009 6:26:40 AM PST by farlander
By the way, ‘hedgers’ are not the same as ‘speculators’.
Hedgers are what the word implies - they’re hedging their bets. Meaning - they have a far larger interest one way, and are limiting their risk. Southwest airlines is one prime example - they ‘hedged’ their fuel risk by buying jet fuel futures contract far in advance, locking in their price and protecting themselves from the big increase.
Speculators are people just trading in the markets. I know everyone wants to blame speculators for high prices, but noone complains when those same speculators drive the same prices into the ground, as it is currently the case.
Speculators in the markets provide liquidity, and therefore efficiency.
Obama, with the aid of sec of state clinton, has successfuly eradicated any confidence foreign government had in the USA.
Obama is a financial liability to ecconomic stability.
They have discovered some parasites that are beneficial, but none in the financial sector that are.
Then you must be a fool. You keep your money in a mattress ?Expecting social security to take care of you later ?
I run a company and provide high paid software development jobs. What do you provide to society except obvious cluelesness, envy, and lame attempts at sarcasm ?
I've been taking it in the shorts for about six months now. (IRA down about 60%)
Hedgers are what the word implies - they’re hedging their bets. Meaning - they have a far larger interest one way, and are limiting their risk. Southwest airlines is one prime example - they ‘hedged’ their fuel risk by buying jet fuel futures contract far in advance, locking in their price and protecting themselves from the big increase.
Hedge funds speculate like crazy
I use the word hedger to also refer to hedge fund and this is common slang
SW Air is very legitimate hedger. They are actually in a business that has sound reasons to hedge on crude and jet fuel
The hedge funds up in Connecticut are speculators in the oil and jet fuel markets. They don't fly airplanes
Yes they provide liquidity but they are now distorting markets too much
As far as taking massive positions in futures contracts this used to be limited to industry participants
Those who risked the SYSTEM for everyone deserve what’s coming to them. But let’s not throw out the good with the bad.
Can't disagree with that but these were much bigger crooks on Wall St. Madoff made a 50 billion dollar mess. Wall St created a multi-trillion dollar mess with their exotic new "products" traded in obscure markets
Huge unexplained spike in Euro and others in the last hour. Move is 33% retraced now.
Are they saying this is due to bad loans/mortgages made by Swiss, Germans,Austrians to East European nations?
Euro jammed upward 4 cents aginst the USD and now it retraced down one cent
The fx trader I’m reading, really bright, doesn’t think it’s related to that (but he doesn’t know for sure).
” I suggest the following thought: do you believe entrepreneurship could actually exist without ability to finance business ? Can a factory invest into expanding without financing it somehow ?”
The people that I grew up with started their businesses with savings, built and expanded them with retained earnings, not with borrowed money and many of them run and own hugh profitable companies.
My own business was started in 1936 by my father with savings and prospered for 57 years without ever borrowing a cent. I only closed it when I would have either had to hire illegals for cash or go broke.
I don’t know of anyone I grew up with or their parents that live on borrowed money, we were all raised to only buy something if we had the money to pay for it.
I’ve always lived by that rule and it has served me very well.
Aye. That’s how it used to be done. However, there are very few modern businesses that have not at one time or the other financed their expansion - whether through borrowing, or, more commonly, stock issue.
All the giants of today, Intel, Microsoft, Apple, Wallmart, UPS, Fedex - all tapped financial markets to facilitate their expansion. Vast majority are immensely succesful, and provide massive economic benefits. Ability to tap public financing is of paramount importance in bringing new ideas to the market and the society.
I hope every one of them goes broke!
I’m hoping for a depression to teach 3 generations of financially irresponsible people how to manage money.
If they all lose everything they have tough luck, I have no sympathy for them.
You and me both. F’rs that made bad decisions need to pay for them - the lenders, the borrowers, and, if we could only make the government pay for their socialist crap too I think justice would be served.
Yea that’s why I don’t do business with people that take custody of accounts, nor do I take custody either. Everything must be done through an respectable FCM, as that’s the only way to ensure transparency.
Yea FX has been the wild west until finally CFTC finally made all the FX shops register this year. I’m expecting to see a lot less of them operating after the rule is put into place.
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