As they say Lawyers should be at the bottom of the ocean, more people are strating to include Brokers who have no assets, and yet act as a middle man.
Just as in the real-estate market crash, brokers would sell over priced homes to under income people, the people move in and the title gets sold off to a new mortgage holder a month later. These brokers walk away with all the money leaving the new bank holding a hot risky potato.
Same with oil contract broker FUNDS, there is no asset on a contract, like say shares in gold, you own some gold. Shares in Exxon you own a piece of that company. Shares like these are just paper contracts.
This broker contract buy sell trade, is just like a barrel of oil having a "Title or Note" they buy it and sell it off quickly. But when your shares goes south, do they sell FUNDS like these off to a new company? If so then the new company has jack and the new companies real assets take a hit.
Same story like the real estate, just different product "Title or Note"
That's my input.
Why do you think companies set these up as funds seperate from the main asset of the companies trading names. That is just like when a company sees a division under a company has now good profit outlook they sell off a division of the company, or have legal ways to just bankrupt a division with out hurting the main branch.
$108.82 (06/13/08)
