* Copyright © 2011 Business Insider, Inc. All rights reserved.
Registration on or use of this site constitutes acceptance of our Terms of Service
and Privacy Policy.
| Disclaimer
Powered by MongoDB
|
Hosted by Datapipe
|
Web analytics by Empirical Path
About a month ago we reported on an inquiry launched into
JPM's "anti-competitive" and "monopolistic" practices on the LME which
have resulted in artificially high prices for a series of commodities
which had been hoarded by the Too Big To Fail bank. Today, the WSJ
continues this investigation into a practice that is not insular to JPM
but also includes Goldman Sachs and "other owners of large metals
warehouses" which can simplistically be characterized as a De Beers-like
attempt to artificially keep prices high for commodities such as
aluminum, courtesy of warehousing massive excess supply, artificially
low market distribution of the final product, while collecting
exorbitant rents in the process. Specifically, "Goldman, through its
Metro International Trade Services unit, owns the
biggest warehouse complex in the LME system, a series of 19 buildings in
Detroit that house about a quarter of the aluminum stored in LME
facilities. Coca-Cola and other consumers say that Metro in particular
is allowing
the minimum amount of aluminum allowed by the LME—1,500 metric tons a
day—to leave its facilities, and that Metro could remove much more,
erasing supply bottlenecks and lowering premiums for physical delivery
in the process. Coca-Cola, which has complained to the LME, says it can
take months to
get the metal the company needs, even though warehouses are allowing
aluminum to come in much more quickly. Warehouses, meantime, collect
rent and other fees." It is not only Goldman's Metro operations, but
includes JP Morgan's Henry Bath division, and naturally commodities
behemoth Glencore, all of which are taking advantage of the LME's
guidelines and rules which make the imposition of a pseudo-monopoly an
easy task. The primary driver of this anti-competitive behavior is the
fact that GS, JPM and Glencore now control virtually the entire
inventory bottlenecking pathways: "In recent years, major investment
banks like Goldman and J.P. Morgan and
commodities houses like Glencore have been snapping up warehouses
around the world, turning the industry from a disperse grouping of
independent operators into another arm of Wall Street. The LME has
licensed about 600 warehouses around the world. The transformation has raised questions about whether the investment
banks, which also have big commodity-trading arms, are able to use their
position as owners of warehouses to manipulate prices to their
advantage."And since the outcome of this anti-competitive delayed
tolling collusion ends up having quite an inflationary impact on end
prices, the respective administrations are more than happy to turn a
blind eye to this market dominant behavior which buffers the impact of
deflation on input costs. We may have seen the end of the OPEC cartel.
Alas, it has been replaced with a far more vicious one - this one having
Goldman Sachs and JP Morgan as its two key members.
WSJ explains further:
Will <b>News</b> Corp. leave the <b>news</b> business? « BuzzMachine
So I wonder whether News Corp. will have to get out of the news business to save the business of News Corp. For it's not so bad to be rapacious when you're in the entertainment business. ...
Will <b>News</b> Corp. leave the <b>news</b> business? « BuzzMachineNikon launches AF-S DX Micro Nikkor 40mm F2.8 macro lens: Digital <b>...</b>
Nikon launches AF-S DX Micro Nikkor 40mm F2.8 macro lens: Nikon has announced an inexpensive macro lens aimed at entry-level DSLR users. The AF-S DX Micro Nikkor 40mm f/2.8G offers true 1:1 macro in a compact, ...
Nikon launches AF-S DX Micro Nikkor 40mm F2.8 macro lens: Digital <b>...</b>Jon Stewart Tackles the <b>News</b> of the World Scandal
But before Stewart could expound on his point, correspondent John Oliver presented him with a recap of Rupert Murdoch's News of the World scandal--a friendly reminder that the British will always find a way to out-shame ...
Jon Stewart Tackles the <b>News</b> of the World Scandal
bobby economics fergusonWill <b>News</b> Corp. leave the <b>news</b> business? « BuzzMachine
So I wonder whether News Corp. will have to get out of the news business to save the business of News Corp. For it's not so bad to be rapacious when you're in the entertainment business. ...
Will <b>News</b> Corp. leave the <b>news</b> business? « BuzzMachineNikon launches AF-S DX Micro Nikkor 40mm F2.8 macro lens: Digital <b>...</b>
Nikon launches AF-S DX Micro Nikkor 40mm F2.8 macro lens: Nikon has announced an inexpensive macro lens aimed at entry-level DSLR users. The AF-S DX Micro Nikkor 40mm f/2.8G offers true 1:1 macro in a compact, ...
Nikon launches AF-S DX Micro Nikkor 40mm F2.8 macro lens: Digital <b>...</b>Jon Stewart Tackles the <b>News</b> of the World Scandal
But before Stewart could expound on his point, correspondent John Oliver presented him with a recap of Rupert Murdoch's News of the World scandal--a friendly reminder that the British will always find a way to out-shame ...
Jon Stewart Tackles the <b>News</b> of the World Scandal
* Copyright © 2011 Business Insider, Inc. All rights reserved.
Registration on or use of this site constitutes acceptance of our Terms of Service
and Privacy Policy.
| Disclaimer
Powered by MongoDB
|
Hosted by Datapipe
|
Web analytics by Empirical Path
About a month ago we reported on an inquiry launched into
JPM's "anti-competitive" and "monopolistic" practices on the LME which
have resulted in artificially high prices for a series of commodities
which had been hoarded by the Too Big To Fail bank. Today, the WSJ
continues this investigation into a practice that is not insular to JPM
but also includes Goldman Sachs and "other owners of large metals
warehouses" which can simplistically be characterized as a De Beers-like
attempt to artificially keep prices high for commodities such as
aluminum, courtesy of warehousing massive excess supply, artificially
low market distribution of the final product, while collecting
exorbitant rents in the process. Specifically, "Goldman, through its
Metro International Trade Services unit, owns the
biggest warehouse complex in the LME system, a series of 19 buildings in
Detroit that house about a quarter of the aluminum stored in LME
facilities. Coca-Cola and other consumers say that Metro in particular
is allowing
the minimum amount of aluminum allowed by the LME—1,500 metric tons a
day—to leave its facilities, and that Metro could remove much more,
erasing supply bottlenecks and lowering premiums for physical delivery
in the process. Coca-Cola, which has complained to the LME, says it can
take months to
get the metal the company needs, even though warehouses are allowing
aluminum to come in much more quickly. Warehouses, meantime, collect
rent and other fees." It is not only Goldman's Metro operations, but
includes JP Morgan's Henry Bath division, and naturally commodities
behemoth Glencore, all of which are taking advantage of the LME's
guidelines and rules which make the imposition of a pseudo-monopoly an
easy task. The primary driver of this anti-competitive behavior is the
fact that GS, JPM and Glencore now control virtually the entire
inventory bottlenecking pathways: "In recent years, major investment
banks like Goldman and J.P. Morgan and
commodities houses like Glencore have been snapping up warehouses
around the world, turning the industry from a disperse grouping of
independent operators into another arm of Wall Street. The LME has
licensed about 600 warehouses around the world. The transformation has raised questions about whether the investment
banks, which also have big commodity-trading arms, are able to use their
position as owners of warehouses to manipulate prices to their
advantage."And since the outcome of this anti-competitive delayed
tolling collusion ends up having quite an inflationary impact on end
prices, the respective administrations are more than happy to turn a
blind eye to this market dominant behavior which buffers the impact of
deflation on input costs. We may have seen the end of the OPEC cartel.
Alas, it has been replaced with a far more vicious one - this one having
Goldman Sachs and JP Morgan as its two key members.WSJ explains further:
Will <b>News</b> Corp. leave the <b>news</b> business? « BuzzMachine
So I wonder whether News Corp. will have to get out of the news business to save the business of News Corp. For it's not so bad to be rapacious when you're in the entertainment business. ...
Will <b>News</b> Corp. leave the <b>news</b> business? « BuzzMachineNikon launches AF-S DX Micro Nikkor 40mm F2.8 macro lens: Digital <b>...</b>
Nikon launches AF-S DX Micro Nikkor 40mm F2.8 macro lens: Nikon has announced an inexpensive macro lens aimed at entry-level DSLR users. The AF-S DX Micro Nikkor 40mm f/2.8G offers true 1:1 macro in a compact, ...
Nikon launches AF-S DX Micro Nikkor 40mm F2.8 macro lens: Digital <b>...</b>Jon Stewart Tackles the <b>News</b> of the World Scandal
But before Stewart could expound on his point, correspondent John Oliver presented him with a recap of Rupert Murdoch's News of the World scandal--a friendly reminder that the British will always find a way to out-shame ...
Jon Stewart Tackles the <b>News</b> of the World Scandal
assurance bobby fergusonWill <b>News</b> Corp. leave the <b>news</b> business? « BuzzMachine
So I wonder whether News Corp. will have to get out of the news business to save the business of News Corp. For it's not so bad to be rapacious when you're in the entertainment business. ...
Will <b>News</b> Corp. leave the <b>news</b> business? « BuzzMachineNikon launches AF-S DX Micro Nikkor 40mm F2.8 macro lens: Digital <b>...</b>
Nikon launches AF-S DX Micro Nikkor 40mm F2.8 macro lens: Nikon has announced an inexpensive macro lens aimed at entry-level DSLR users. The AF-S DX Micro Nikkor 40mm f/2.8G offers true 1:1 macro in a compact, ...
Nikon launches AF-S DX Micro Nikkor 40mm F2.8 macro lens: Digital <b>...</b>Jon Stewart Tackles the <b>News</b> of the World Scandal
But before Stewart could expound on his point, correspondent John Oliver presented him with a recap of Rupert Murdoch's News of the World scandal--a friendly reminder that the British will always find a way to out-shame ...
Jon Stewart Tackles the <b>News</b> of the World Scandal
bobby ferguson wa
No comments:
Post a Comment