Quote:
Originally Posted by Claeren
The same 'poor institutions' and their wealthy investors that the American taxpayer is (potentially) bailing out of a huge mess can now afford to move their capital back to oil and re-place all of their positions that they recently had to vacate to raise capital to cover what they had thought were their own losses (instead of taxpayer losses).
Must be nice, the taxpayer providing $1.5 Trillion in essentially free money so that you can place wild bets in another market instead of owning-up to your losses.
Claeren.
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LOL
Too true, too true.
I agree with your take, this is exactly what is happening. Instead of keeping a whole bunch of cash on hand with the possibility of write-downs, these banks and major investors are now diverting their capital to low-risk commodity market causing huge price increases.
What a joke.