COLORS OF THE WIND: BLEAK
July 4th 2008 00:00
Up till the very last minute of my self-imposed deadline, I could not decide on what to write for today’s post. Well, until a song started playing inside my head. But no, I have not suddenly turned into a lyricist or anything like that. This post is still about making money and sometimes about losing it.
Done with preamble. Now, let’s go to business. It still fluctuates, maybe to give credence to the author of the Elliot Wave Theory, but the price of oil practically does nothing these days than to go up. Day after day, you read about it hitting new records, then sliding down, then going up again to punch a hole on the ceiling of the last record price it made.
The money managers who lost their nerves in using other hedging instruments found a new haven in that black commodity and they might as well be calling it “heaven” than “haven.” And why not, when they are doubling or tripling their money while millions are hitting the gutters, starving to death?
Of course, if you are the money manager, you can claim that you are only doing the right and sensible thing to protect the assets under your management. And you will be right. But you see, while you are doing it, and while the likes of you are multiplying because of the lure of more of those assets (the dollar sign, pleaseee!) which your clients will probably need a dozen of their greedy lifetimes to spend, millions of those who can hardly afford one lifetime are practically spilling into the streets!
Oh, but let’s not worry about it, one of these days, some of your clients will take their materialistic eyes off their hoard of newly acquired expensive “non-essentials”, take a glance into the surrounding, notice a number of “poor little souls” who cannot take-care of their own (because they have been fired from their jobs time and again due to the ever rising cost of doing business, which is a direct result of the ever escalating price of oil), and so the client will organize a donation campaign to raise funds to feed the “needy.” Maybe help them “stand on their own two feet.”
Because the clients have a lot of friends who are pretty much like them, the campaign donations will pour in and run into hundreds of millions, and because they have a golden heart, they will give those millions not just to a few “poor little souls” but to thousands upon thousand of them and they will feel very good about this deed because they are able to give to the unfortunates, what… a few measly dollars worth of food that will last them – maybe, a day!
Now, isn’t that a lot better than just letting the price of oil alone? But why not take advantage of the opportunity to utilize a very effective instrument for protecting your client’s assets? Why not squeeze blood out of a turnip? Why allow the hapless individuals to continue working? Why not make it a little bit harder for the other industries to continue producing goods?
Come on guys, there are still remaining automakers which have thousands of workers! The transportation industry and those small retailers are still able to eke out a living, let’s quadruple the price of oil some more so they can fire thousands more of their employees and fold up those retail stores! Darn, this opportunity will never come again for the next couple of years the moment it stops!
Now, let me just see that line up. If we keep buying oil: we bring up the price of transporting goods, people and machinery. We bring up the cost of producing power, we jack up electricity bills, we increase the price of producing goods, food prices go up, inflation go up, we make it harder for people to buy their daily essentials, margin of profit shrinks, companies that can no longer hack it close shop... people stop buying appliances, cars, non-essentials…food.
Very good! Then, we can organize another feeding campaign…
Sheees! Didn’t I start this post with a title of a song…? Oh yes, Colors of the wind! Now, what about it? Well, it was the song that started playing inside my head while I was thinking about what to write for today. Remember that? It was the theme in that movie Pocahontas!
Err…ah, that song is related to this post because….? Well, there is a line there that goes: “And we are all connected to each other, In a circle in a hoop that never ends…”
Now, isn’t that a nice line? Come on! Let’s buy some more of that oil! There is no other hedging facility that works, right? It is really good in protecting our assets!
By the way, in case you missed the news… Here in the Philippines, the oil companies have just announced that their under-recoveries for June alone have reached P7.00/ liter. And the most recent price increases in the commodities market have not yet been factored in.
Start adding that number in the price of your petrol guys. It is being adjusted here every week! No. Don’t think about world market prices for July, yet. It will continue to be used as a hedge to protect assets, remember?
Aaaarrrgh! Good. Now, you start seeing the colors of the wind?
P.S. This is not intended to malign other posts. This is just the way I see things at the moment. Well, not exactly. I’ve already made reference to the use of oil as hedging instrument last April.
Done with preamble. Now, let’s go to business. It still fluctuates, maybe to give credence to the author of the Elliot Wave Theory, but the price of oil practically does nothing these days than to go up. Day after day, you read about it hitting new records, then sliding down, then going up again to punch a hole on the ceiling of the last record price it made.
The money managers who lost their nerves in using other hedging instruments found a new haven in that black commodity and they might as well be calling it “heaven” than “haven.” And why not, when they are doubling or tripling their money while millions are hitting the gutters, starving to death?
Of course, if you are the money manager, you can claim that you are only doing the right and sensible thing to protect the assets under your management. And you will be right. But you see, while you are doing it, and while the likes of you are multiplying because of the lure of more of those assets (the dollar sign, pleaseee!) which your clients will probably need a dozen of their greedy lifetimes to spend, millions of those who can hardly afford one lifetime are practically spilling into the streets!
Oh, but let’s not worry about it, one of these days, some of your clients will take their materialistic eyes off their hoard of newly acquired expensive “non-essentials”, take a glance into the surrounding, notice a number of “poor little souls” who cannot take-care of their own (because they have been fired from their jobs time and again due to the ever rising cost of doing business, which is a direct result of the ever escalating price of oil), and so the client will organize a donation campaign to raise funds to feed the “needy.” Maybe help them “stand on their own two feet.”
Because the clients have a lot of friends who are pretty much like them, the campaign donations will pour in and run into hundreds of millions, and because they have a golden heart, they will give those millions not just to a few “poor little souls” but to thousands upon thousand of them and they will feel very good about this deed because they are able to give to the unfortunates, what… a few measly dollars worth of food that will last them – maybe, a day!
Now, isn’t that a lot better than just letting the price of oil alone? But why not take advantage of the opportunity to utilize a very effective instrument for protecting your client’s assets? Why not squeeze blood out of a turnip? Why allow the hapless individuals to continue working? Why not make it a little bit harder for the other industries to continue producing goods?
Come on guys, there are still remaining automakers which have thousands of workers! The transportation industry and those small retailers are still able to eke out a living, let’s quadruple the price of oil some more so they can fire thousands more of their employees and fold up those retail stores! Darn, this opportunity will never come again for the next couple of years the moment it stops!
Now, let me just see that line up. If we keep buying oil: we bring up the price of transporting goods, people and machinery. We bring up the cost of producing power, we jack up electricity bills, we increase the price of producing goods, food prices go up, inflation go up, we make it harder for people to buy their daily essentials, margin of profit shrinks, companies that can no longer hack it close shop... people stop buying appliances, cars, non-essentials…food.
Very good! Then, we can organize another feeding campaign…
Sheees! Didn’t I start this post with a title of a song…? Oh yes, Colors of the wind! Now, what about it? Well, it was the song that started playing inside my head while I was thinking about what to write for today. Remember that? It was the theme in that movie Pocahontas!
Err…ah, that song is related to this post because….? Well, there is a line there that goes: “And we are all connected to each other, In a circle in a hoop that never ends…”
Now, isn’t that a nice line? Come on! Let’s buy some more of that oil! There is no other hedging facility that works, right? It is really good in protecting our assets!
By the way, in case you missed the news… Here in the Philippines, the oil companies have just announced that their under-recoveries for June alone have reached P7.00/ liter. And the most recent price increases in the commodities market have not yet been factored in.
Start adding that number in the price of your petrol guys. It is being adjusted here every week! No. Don’t think about world market prices for July, yet. It will continue to be used as a hedge to protect assets, remember?
Aaaarrrgh! Good. Now, you start seeing the colors of the wind?
P.S. This is not intended to malign other posts. This is just the way I see things at the moment. Well, not exactly. I’ve already made reference to the use of oil as hedging instrument last April.
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