william the wie
Gold Member
- Nov 18, 2009
- 16,667
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WTI's warehouse for delivery on futures contracts, Ft. Collins, is filling up. This has some obvious consequences for the stock market.
Margin calls on futures are not restricted to a trader's account much less just futures contracts.
Panics jump markets. 1929 was preceded by a collapse in the small grains market and major scandal in the London Stock Exchange which may have been related to commodities trading.
Banks have been issuing junk bonds to wild-catters and selling them to yield whores as high risk/high return vehicles. It is quite possible that a few bond funds may go belly up in spectacular fashion..
Sales of royalty trusts, oil field royalties, to little old ladies have been hot for years so lawsuits against brokers are quite likely.
So, this problem is likely to get real interesting.
Margin calls on futures are not restricted to a trader's account much less just futures contracts.
Panics jump markets. 1929 was preceded by a collapse in the small grains market and major scandal in the London Stock Exchange which may have been related to commodities trading.
Banks have been issuing junk bonds to wild-catters and selling them to yield whores as high risk/high return vehicles. It is quite possible that a few bond funds may go belly up in spectacular fashion..
Sales of royalty trusts, oil field royalties, to little old ladies have been hot for years so lawsuits against brokers are quite likely.
So, this problem is likely to get real interesting.