June 3, 2008
IF ANYONE KNOWS FIXED MARKETS:
Oil prices: George Soros warns that speculators could trigger stock market crash (Graeme Wearden, 6/03/08, guardian.co.uk)
George Soros, the billionaire hedge fund manager, will warn later today that the oil price has become a bubble that could trigger a stock market crash.The Financial Times reported today that Soros will tell the US Senate commerce committee that oil was pushed to its recent all-time peak of $135 a barrel by a new wave of speculators.
He believes that the doubling in the price over the last year is partly due to investment institutions, such as pension funds, who are pumping money into indexes that track the cost of crude.
He obviously thinks Senator Obama is going to win and fears what tinkering like that which he's engaged in could make of his presidency. Posted by Orrin Judd at June 3, 2008 7:33 AM
oil price up => inflation => financial assets devalue => market crash
now Soro says: oil bubble burst, oil price down, stock market crash
What the heck is he talking about? Talk down the market, and scoope up equities at basement prices.
Posted by: ic at June 3, 2008 1:31 PMI'm surprised how Soros can get an audience with the US Senate Commerce Committee - isn't he wanted or has been convicted for insider trading? And if so, wouldn't he be a criminal and then, how is it he gets this type of facetime?
Posted by: KRS at June 3, 2008 4:04 PMThe rise in a commodity price isn't inflation.
Posted by: oj at June 3, 2008 5:00 PM