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Not to To Worry


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Hmmmm.

 

The ETF bubble looks like it may be the next one to burst. WSJ just out that the CFTC is probing the USO ETF for price moves coinciding with trades in and out of crude-oil contracts. The USO has recently gotten prominent media attention over allegations that it is a perpetually value bleeding asset, and potentially a pyramid structure.
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The way to rectify the balance of trade imbalances, swindle them. :lol:

 

 

BU DHABI (Reuters) - Abu Dhabi is assessing its $7.5 billion investment in Citigroup as the bank's problems deepen and consequences of a possible nationalization become clearer, according to sources close to the Abu Dhabi Investment Authority (ADIA).

 

ADIA invested $7.5 billon last year in Citi through convertible bonds that pay 11 percent in interest, but it must start converting the bonds into 235.6 million shares in Citigroup from March next year.

Roids

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How about the C mess playing out the old fashioned way, the bondholders become the new shareholders. :lol:

 

That's exactly what will happen.....they wil be haircut and receive shares as a % of notional face....same thing is happening with GM right now.....govi is involved so that could serve as a template.....

 

That'll really get C's stoopid tangible common equity level up......then the company will have no debt & no interest payments, admittedly not an "optimal capital structure" by any means.....

 

So 100% ownership conveyed to equity holders.....OOOOO-FAAAA.....that'll be interesting, to say the least

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You can buy long dated futures or Canadian Oil Sands Trust, I am doing the latter :D

 

Thanks cwd. Are you worried about "dirty oil risk"? Here in a Alberta it looks a bit like an environmental storm is gathering on the horizon. 500 ducks commit suicide, and suddenly the world thinks your oil is dirty :blink: Who knew?

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Thanks cwd. Are you worried about "dirty oil risk"? Here in a Alberta it looks a bit like an environmental storm is gathering on the horizon. 500 ducks commit suicide, and suddenly the world thinks your oil is dirty :blink: Who knew?

 

 

The main points in favor of COS and SU are their facilities are in and largely paid for. I would think a lot of projects that are still in the planning stage probably won't be built. In the end the oil is going to be produced and used by Canadians and the rest exported.

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w/r/t the attempts to suppress recessions/cyclical economic downturns:

 

imagine if your gastroenterologist tried to suppress regular bowel movements. "stool, in general, smells mighty unpleasant, mr. smith. 'tis best to keep it all in. take a couple of these bowel paralytics daily, and here's your referral to dr. burnhanky for anal sutures."

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another comparison is forest fire management

 

trees naturally die and dry out

 

a good forest fire cleans out all the dead timber (and is part of the lifecycle of some trees)

 

however humans don't much like forest fires.

 

I know the forest service set preventive fires here and there but don't be tryin' that in Topanga Canyon.

 

as a result the combustible underbrush builds up and...

 

610x.jpg

 

Cyclical boom and bust is natural. We had an incredible explosion in the cluster fly population last year. Some days the entire outside of the house would be crawling with millions of flies. People thought the clouds of them were smoke. The birds stayed fat all winter eating their corpses. Before that it was beavers. They just exploded, and dammed my creek continually. The cut down hundreds of good trees. And then, this fall, they disappeared. The poplar are coming back.

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