Global Margin Call Pushing Oil Prices Lower …
Sean Brodrick (September 17th, 2008) Writes:
The commodity correction continues. And it's getting more painful by the minute as big trading houses like Lehman and Merrill Lynch go belly up or are forced into mergers. I think we're seeing a margin call on a global scale.
The good news is it should bring incredible opportunities for long-term investors. The bad news is we could see a lot more pain before this is over.
A "margin call" is when an investment, bought with borrowed money, decreases in value past a certain point, and an investor either has to put up more money or sell the investment. And we're seeing margin calls as Lehman and others liquidate their trading books.
What's more, we're seeing margin calls in oil.
Speculators pushing prices down
Now, here's where I eat ...


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