Before the Oil Bubble Burst

November 12 2008, 3:49am

Before the Oil Bubble Burst: George Soros warned in June 2008 that the investment flood into commodity indexes bore eerie similarities to the craze for portfolio insurance that led to the stock market crash of 1987. Investment institutions, he told a US Senate committee on energy manipulation, “are piling in on one side of the market and they have sufficient weight to unbalance it. If the trend were reversed and the institutions as a group headed for the exit as they did in 1987, there would be a crash.”


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