The story traders are selling doesn't make much sense--if the debt ceiling is not increased, then the economy will lurch downwards, putting even further downward pressure on oil demand globally--demand levels which already make it very difficult to explain this high price, especially given the vehicle miles traveled and other consumption data.

If, on the other hand, the debt ceiling is increased then at least arguably the economy has a chance of reaching escape velocity (although given the spending cuts envisioned even that's hard to credit) and, thus, demand for oil would go up, putting upward pressure on the price, theoretically anyways.

What we are looking at with the trader talk is price being alienated from supply and demand. Note that in the commitment of traders report the commercials are net short.

The company used complex mathematical models to take advantage of fixed income arbitrage deals (termed convergence trades) jenna haze usually with U.S., Japanese, and European government bonds. Government bonds are a "fixed-term debt obligation", meaning that they will pay a fixed amount at a specified time in the future. Differences in the bonds' present value are minimal, so according to economic theory any difference in price will be eliminated by arbitrage. Unlike differences in share prices of two companies, which could reflect different underlying fundamentals, price differences between a 30 year treasury bond and a 29 and three quarter year old treasury bond should be minimal—both will see a fixed payment roughly 30 years in the future. However, small discrepancies arose between the two bonds because of a difference in liquidity.[13] By a series of financial transactions, essentially amounting to buying the cheaper 'off-the-run' bond (the 29 and three quarter year old bond) and shorting the more expensive, but more liquid, 'on-the-run' bond (the 30 year bond just issued by the Treasury), it would be possible to make a profit as the difference in the value of the bonds narrowed when a new bond was issued.As LTCM's capital base grew, they felt pressed to invest that capital and had run out of good bond-arbitrage bets.This led LTCM to undertake more aggressive trading strategies. Although these trading strategies were non-market directional, i.e. they were not dependent on overall interest rates or stock prices going up (or down), they were not convergence trades as such.By 1998, LTCM had extremely large positions in areas such as merger arbitrage and S&P 500 options (net short long-term S&P volatility). LTCM had become a major supplier of S&P 500 vega, which had been in demand by companies seeking to essentially insure equities against future declines.

If one meeting on one day is enough to give someone foreign policy experience. RIO then Angelina Jolie and Bono also have enough foreign policy experience to be Vice President..

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