RE:Storm developing in the Caribbean basinIndeed and there is another storm developing in the futures market(re-oil price,com)
$1.5 Trillion EU are at risk in the commodities futures markets due to being trapped
in outstanding margin calls. This is shades of the sub prime mortgage catastrophe
where counter party risk called in their positions in effect forcing mass liquidation
and simply refused to participate any longer in the market. This collapsed the sub
prime mortgage market business entirely causing a financial ripple effect throughout
the whole US banking system. The US financial system came to a hairs breath
of utter collapse.
Now we have a similar scenario on the brink in Europe. The EU is of course trying
to ease peoples fears with the standard "don't worry, we've got it under control, it
isn't really that bad" line. I'm not suprised by this one bit however with a dysfunctional futures market, all H ell could break loose in the oil markets IMO.