tag:blogger.com,1999:blog-2761684730989137546.post4075933204647267698..comments2024-03-28T20:28:01.733-04:00Comments on Mike Norman Economics: Yves Smith — How Goldman Made $5 Billion By Manipulating Aluminum Inventories (and Copper is Up Next)mike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2761684730989137546.post-31635406106121619942013-07-21T21:21:51.485-04:002013-07-21T21:21:51.485-04:00If the holdings are physical holdings of the ETNs ...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.<br /><br /> 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....Ryan Harrishttps://www.blogger.com/profile/04815033054435303399noreply@blogger.com