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For all those who "don't get it", read jsmcgd's link. For convenience I'll repeat it here "How Goldman Sachs Created the Food Crisis" http://www.foreignpolicy.c
by chrisbennet 15y ago
For all those who "don't get it", read jsmcgd's link.
For convenience I'll repeat it here
"How Goldman Sachs Created the Food Crisis"
http://www.foreignpolicy.com/articles/2011/04/27/how_goldman_sachs_created_the_food_crisis?page=full http://www.foreignpolicy.com/articles/2011/04/27/how_goldman...
The very briefest answer is that G.S. created a "long only" investment vehicle based on food staples with no mechanism for shorting it.
- Tichy 15y agoI've read it, but I don't really understand it. Could you explain it, please?
- anamax 15y ago> The very briefest answer is that G.S. created a "long only" investment vehicle based on food staples with no mechanism for shorting it. In other words, GS didn't create a mechanism for speculation.... Note that the financial industry is often trashed for shorts, as in "those folks are betting on/profiting from failure". So, now we find that they're also wrong for not creating an opportunity for shorting.
- yummyfajitas 15y agoWhile the GSCI is a "long only" investment vehicle, it is utterly nonsensical to say there is no way to short it. All you need to do is buy a set of short positions which are mirrors of the GSCI's long positions.