Thursday, July 5, 2007
Flashback: Higher oil prices will impact such things as lending rates
Higher oil prices will impact such things as lending rates
Oil spiked today but not for reasons directly related to oil. The point here is that unforeseen consequences abound in connected markets. Private Equity Firms, Hedge Funds and other investment managers have finally breached the differences in asset classes effectively. A Capacitor was once described to me in "water" terms as a pipe with a rubber sheet across it allowing one fluid on one side to transmit its pressure variations without the fluids mixing. Think of our brave new world of financial wizadry as a set of capacitors allowing pressure from one market to be transmitted to another.
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