An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
If the holdings are physical holdings of the ETNs or ETFs, great, it means the banks are actually backing their derivatives with physical as required. I'm not sure that having larger stock piles of raw materials is a bad thing for society. For many years companies had reduced the amount in storage to save money, but it created instability in the supply chain. This can reduce the likelihood of shocks when wars, trade disputes and natural disasters strike.
If they are trying to be the next Hunt brothers and corner the market, then it is a problem. The bigger problem is that they aren't banking and instead doing a poor job managing logistics warehouses. Obviously their priority is not shipping to buyers but moving product between accounts but other warehouses focused on customers will replace their bad service, they aren't the only warehouses....
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If the holdings are physical holdings of the ETNs or ETFs, great, it means the banks are actually backing their derivatives with physical as required. I'm not sure that having larger stock piles of raw materials is a bad thing for society. For many years companies had reduced the amount in storage to save money, but it created instability in the supply chain. This can reduce the likelihood of shocks when wars, trade disputes and natural disasters strike.
If they are trying to be the next Hunt brothers and corner the market, then it is a problem. The bigger problem is that they aren't banking and instead doing a poor job managing logistics warehouses. Obviously their priority is not shipping to buyers but moving product between accounts but other warehouses focused on customers will replace their bad service, they aren't the only warehouses....
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