Friday, January 28, 2011

Don't be a greedy pig

Don't be a greedy pig.  Don't be a greedy pig.  Don't be a greedy pig.  Don't be...When I was a kid, one of my punishments for bad behavior was to write something over and over again.  Alot of it has stuck with me.  "Don't be a greedy pig" is something I need to write over and over again.
Take your gains, don't be greedy. 
Now, in my defense, oil surged today for ridiculous and ignorant reasons.  The concern is that the riots in Egypt will close the Suez canal and affect oil transit flows.  This is unlikely to happen because 1) this is not an Al-Qaeda/Muslim Brotherhood insurgency; its a popular uprising against a dictator that the population feels does not represent their best interests and/or cannot provide for a better future, i.e., there is no reason that - even if they toppled the current government - the Suez canal operations would be affected whatsoever; 2) even if the Suez canal was closed completely, only about 1.5% of world oil used per day flows through the Suez, i.e., at most, it would delay some delivery of oil, but with stockpiles at all-time highs, its hard to see how a normal supply/demand price would be affected (i.e., its idiots/HFT that hear "maritime chokepoint" and "Middle East" and are pre-programmed to "buy buy buy").

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