Amaranth’s lawsuit against JP Morgan reveals two botched bets 14 Nov 2007 The defunct hedge fund lost a bundle on a huge natural gas wager. It now alleges that JP Morgan exploited its role as its broker to block white knights. The suit s merits are debatable. But the debacle illustrates a second bad bet: leaving a fund at the mercy of a single broker.
Crude benchmark distorts economic reality 17 Oct 2007 Oil market bulls say $90 oil is due to tight supplies. But the only place that has seen a big drop lately is the futures market s delivery point. This has driven the price of oil futures to record levels. But oil tanks worldwide are overflowing. The price of oil should be a lot lower.
Why are commodities bucking the credit squeeze? 16 Oct 2007 The price of oil briefly hit a record $89 on Wednesday. Mining shares and wheat are flying high. One reason is that there's still a lot of liquidity in Asia and the Middle East. Another is that last month's sharp cut in interest rates has given speculators new life.
China should be bold in revaluation 18 May 2005 The expected 510% would only attract more hot money. If the government loses control of the renminbi, it could easily rise by over 30%. A 20% move would calm both speculators and US critics.