According to Michael Masters of Masters Capital Management, hedge funds and other institutional investors boosted their investments in commodities such as food and crude oil from $13 billion at the end of 2003 to $260 billion as of March 2008.THIS HAS CAUSED THE BUBBLE:
- THIS INFLOW HAS INFLATED THE PRICE OF OIL.
- TOO MUCH MONEY IS CHASING TOO LITTLE OIL.
- NOT TOO LITTLE FOR ACTUAL CONSUMPTION, BUT TOO LITTLE FOR THE HEDGE FUNDS!
- THIS CANNOT BE SUSTAINED.
- THE BUBBLE WILL BURST; OIL WILL CRASH
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