Will we see the same SubPrime Arbitrage Trade that dominated trading desks like it did in 2008?
That trade was:
SHORT DOLLAR
SHORT FINANCIALS
LONG CRUDE OIL
LONG CDS PAPER
OPEC has stated that Crude is not trading on Fundamentals, to which I say: Does anything trade on Fundamentals? But what cant be ignored is the fact that the Wall Street Money Machine is back in business on the Crude Trade. Wall Street firms were the biggest net buyers of Crude, Nat Gas, RBOB, & Heating Oil Futures in March and April. Its quite absurd that Goldman/Morgan/BOFA/JP all took TARP Money and issued debt (TLGP) guaranteed by the government, not to lend or stimulate capital flow, but to pad and finance their own internal trading ledgers. Why would they want to pay back TARP, when they are doing a great job of inserting the rod in us?
Yes...America...we are the fools once again. They take tax payer money and run up commodity prices financed by us. Get ready for $4 gas at the pumps by labor day. When did the powers that be forget that Wall Street is Soulless? Crooked and fraudulent to the core.
At least BUSH/CHENEY/PAULSON told us and did what ever they wanted to do. They didn't try to placate the masses with spin. What is Savior OBAMA/BIDEN/GEITHNER's excuse?
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