Bullitt
Market Veteran
- Reaction score
- 72
Hmmm. At least, that's what the word is on main street. I have a feeling that there are other Hedge Funds/Mutual Funds besides SemGroup that are in trouble over their bets on Commodities. Janus got waaayy overweight Commodities after getting destroyed when the Tech Bubble burst.
http://www.marketwatch.com/news/sto...3F450-8AD3-4023-9958-4D5305E4836F}&dist=msr_1
Janus is just one fund company of the thousands that were probably pressured into jumping onto commodities just as things began to get euphoric. Better them than me, I don't invest in things meant for consumption.
Speaking of Cause and Effect.... Wasn't it the two Bear Sterns hedge funds about a year ago that, in hindsight, were the signal to get the heck outta stocks?
It was Goldman Sachs, the anti christ. They put a run on SemGroup and drove prices up to $147 just to benefit their own pockets. Some day, some journalist somewhere will fight the power and expose the inside trading that happens at these firms and it will be on mainstream media. There will be an uprising when people find out that a few greedy crooks exacerbated the global recession by manipulating prices higher, ultimately leading to the layoffs of millions tied to the global economy. This runup had nothing to do with supply and demand. Everybody knows that nobody knows manipulation like this happens every day.
http://www.forbes.com/forbes/2009/0413/096-sachs-semgroup-goldman-goose-oil.htmlSemgroup's collapse was more than just bad judgment and worse timing. There is evidence of a malevolent hand at work: oil price manipulation by traders orchestrating a short squeeze to push up the price of West Texas Intermediate crude to the point that it would generate fatal losses in Semgroup's accounts.
I really wish this kind of thing would be on the mainstream news with Brian Williams instead of this smoke about CEO kickbacks and bonuses. Oil affects everyone on the planet, the CEO salaries are a drop in the bucket compared to the manipulation that took place in the oil markets. Everyone complains about the Plunge Protection Team. Well, for the record, I don't believe in it. I believe Goldman Sachs is the #1 market manipulator. These guys are everywhere.