short run inelasticity. The only people the consumer has to blame is themselves for being 'oil dependent' and having the disposable income to afford purchasing. Having dumb energy policy is the fault here... Arbitrageurs' exposition of the problem should justify us crediting them for showing us how stupid our policies are (which exacerbate this vulnerability to and amplification of short run inelasticity of demand).
Also this article is very weak and lacking specificity.. How can Semgroup's position cause a short squeeze (implying closing of short positions), yet Barclays assumes their book post-bankruptcy, and makes a killing off it?
I love bitching about GS as much as anyone else, but there was no grand heist... and the following bust more than made up for any short run profits, so the market has served justice already.
This is simple. what was consumer surplus became producer surplus. And now it flipped. Over time, with the boom + bust combined, it all balanced out.
Also this article is very weak and lacking specificity.. How can Semgroup's position cause a short squeeze (implying closing of short positions), yet Barclays assumes their book post-bankruptcy, and makes a killing off it?
I love bitching about GS as much as anyone else, but there was no grand heist... and the following bust more than made up for any short run profits, so the market has served justice already.
This is simple. what was consumer surplus became producer surplus. And now it flipped. Over time, with the boom + bust combined, it all balanced out.