Oil ceased to be oil. Oil ceased to be a commodity. Now this is a financial instrument which is called - "Futures contract".
The basic rule of the market "demand creates supply" does not work in this case. Because the demand is not managed by real buyers. Because not real manufacturers make up the tender. In this world ruled by speculators and hedge funds.
You'll be surprised if the bank will begin to buy huge quantities for themselves orange juice and corn. But you are not surprised, if this bank buys oil But the basic difference is not present: all of them are the commodity. Certainly, while they remain the commodity... But oil is not a commodity now, it is a financial instrument only.
All becomes complicated also that future contracts on oil much more in the market, than is the oil. The contract actually is the contract without the commodity. And it does not excite anybody. Banks and hedge funds with pleasure are buying it, knowing that under the name "oil" they are buying simply air. And this happens not only with oil. As and derivatives are torn off from real money etc.
And this is causing the crisis, but not delinquent loans on the mortgage. Isolation of virtual financial instruments from real money and the commodity - here a principal cause. All measures of struggle against crisis now how struggle against windmills. Because struggle goes not with the reason, but with a consequence. Don Quixote and Sancho Panza in XXI century.
As long as financial instruments will not correspond to the real commodity and real money, we will wait the next collapse by reason of the next "soap bubble". Also it is not known than all will end next time.
