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Sunday, July 21, 2013

Yves Smith — How Goldman Made $5 Billion By Manipulating Aluminum Inventories (and Copper is Up Next)


Neoliberal capitalism at its finest. Free to frontrun and manipulate markets.

Naked Capitalism

How Goldman Made $5 Billion By Manipulating Aluminum Inventories (and Copper is Up Next)
Yves Smith

1 comment:

  1. 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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