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...February 2009 and February 2010 contracts. In other words, if a company bought oil on the February 2009 contract, stored it for a year and sold it on the February 2010 contract, it would make more than $22 per barrel, excluding the costs of the operation. This represents a greater than 60% gross return! Since interest, storage and delivery costs should amount to significantly less than the $22 spread, the venture would yield a virtually riskless profit, or arbitrage. When the February contract ended trading in late January, an enormous opportunity still existed for arbitrageurs...

Author: /time Magazine | Title: How Citigroup Makes Hay in the Oil Market | 2/2/2009 | See Source »

...banks were poorly positioned to weather a downturn - particularly this downturn. Accounting rules demand that banks take a hit to their earnings by the value of a loan when it becomes clear a borrower is not going to pay it back. When a bank's loan losses are greater than its income, it has to take money from its shareholders' equity account to make up the difference. That's a big deal for a company's investors. If shareholders' equity is wiped out, their stock is effectively worthless. So investors watch this account intensely; if they think shareholders' equity...

Author: /time Magazine | Title: Why Your Bank Is Broke | 1/31/2009 | See Source »

...1990s. But Summers has long identified himself as a Democrat and has often leaned toward the left edge of the centrist economic consensus that has driven our recent financial history. "His solutions tend to be government-led, progressive structuring of the market for what he perceives as the greater social good," explains the new Treasury Secretary, Timothy Geithner, who was an Under Secretary for Summers during the Clinton Administration. "But he is also a firm believer in letting market forces lead...

Author: /time Magazine | Title: Can Larry Summers Save the Economy? | 1/29/2009 | See Source »

Harvard Kennedy School professor Joseph S. Nye has been offered the post of U.S. ambassador to Japan, an appointment that could enhance the current administration’s call for greater adoption of Nye’s noted “soft power” foreign policy philosophy, according to multiple news outlets...

Author: By Esther I. Yi, CRIMSON STAFF WRITER | Title: Rumors Peg Nye As Ambassador To Japan | 1/29/2009 | See Source »

...appointment of Nye, who would replace current ambassador Tom Schieffer, would complement the current administration’s call for a greater reliance on soft power, a marked contrast to what many of Obama’s top national security officials viewed as the overuse of military force, or “hard power,” during the past administration...

Author: By Esther I. Yi, CRIMSON STAFF WRITER | Title: Rumors Peg Nye As Ambassador To Japan | 1/29/2009 | See Source »

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