Comments on: “Bona Fide Hedging” Exemption Reinflates Oil Bubble http://www.tradersnarrative.com/bona-fide-hedging-exemption-reinflates-oil-bubble-2712.html Freshly squeezed market commentary & analysis Sun, 22 Nov 2009 00:49:01 +0000 http://wordpress.org/?v=2.0.2 by: Babak http://www.tradersnarrative.com/bona-fide-hedging-exemption-reinflates-oil-bubble-2712.html#comment-48635 Thu, 02 Jul 2009 17:01:24 +0000 http://www.tradersnarrative.com/bona-fide-hedging-exemption-reinflates-oil-bubble-2712.html#comment-48635 Robert, lol thanks for the onion article. That topic has many layers. But seriously, it has been demonstrated over and over again that without a futures market, spot prices are more volatile. Nothing new there. Robert, lol thanks for the onion article. That topic has many layers. But seriously, it has been demonstrated over and over again that without a futures market, spot prices are more volatile. Nothing new there.

]]> by: Rich http://www.tradersnarrative.com/bona-fide-hedging-exemption-reinflates-oil-bubble-2712.html#comment-48541 Thu, 02 Jul 2009 13:22:36 +0000 http://www.tradersnarrative.com/bona-fide-hedging-exemption-reinflates-oil-bubble-2712.html#comment-48541 Goldman was hedging in the oil markets by going long. they were selling swaps to institutions and ETFs to go long oil. Goldman might have been net long but not to the extent you think and they can go net short on a moments notice when the demand from their long only swap partners dries up. they make money on both sides of the market but especially on the short side when the demand from their swap partners dries up. Goldman was hedging in the oil markets by going long. they were selling swaps to institutions and ETFs to go long oil. Goldman might have been net long but not to the extent you think and they can go net short on a moments notice when the demand from their long only swap partners dries up. they make money on both sides of the market but especially on the short side when the demand from their swap partners dries up.

]]> by: Robert http://www.tradersnarrative.com/bona-fide-hedging-exemption-reinflates-oil-bubble-2712.html#comment-48427 Thu, 02 Jul 2009 04:12:46 +0000 http://www.tradersnarrative.com/bona-fide-hedging-exemption-reinflates-oil-bubble-2712.html#comment-48427 So what theory were people enthralled with in 97-98 when crude was at an all time low? I remember gas near my house at $0.78. Sure, maybe GS goosed crude the last day or two or last year's spike....but if they did they lost a shit ton of money. <a href="http://money.cnn.com/2008/06/27/news/economy/The_onion_conundrum_Birger.fortune/">Onion price volatility!</a> So what theory were people enthralled with in 97-98 when crude was at an all time low? I remember gas near my house at $0.78. Sure, maybe GS goosed crude the last day or two or last year’s spike….but if they did they lost a shit ton of money.

Onion price volatility!

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