“Tolong jelasin masalah resesi dong”

recession-2008(Conversation as of 19 October 2008)

yyyy(9:43:38 PM): btw tlg jelasin masalah resesi dong

yyyy(9:43:43 PM): gw ga ngerti nih hehehe

yyyy(9:43:47 PM): lo kan pasti jago

Dhirosattha (9:44:40 PM): resesi ekonomi scr umum? ato yg sekarang?

yyyy(9:47:25 PM): yg sekarang

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We have been talking about the wrong type of oil inventory

By Sendy Filemon, 25 October 2008

When one think about speculating on commodities, products with physical form, one thinks about hoarding.
Popular example in an Asian country would be, rice hoarding, speculators buys rice, hoard it in some warehouse, create supply gap in the market, prices starts increasing, consumer start to perceive the increase in price, consumers join hoarding rice, price gets even higher, then the original speculator release his stock. (For readers who don’t live on such country, please exchange “rice” with any other staple food in your country).

This is how the speculator makes his killing, creating false supply and demand gap, leveraging market sentiment to create a snowball effect, and reap the profit when the snowball gets big enough.
To execute this type of speculation effectively, the speculator would need large amount of capital and physical space.

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