The History of a Scandal: Metallgesellschaft Revisited with Kevin O’Reilly
The HC Commodities Podcast
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The Itchy Trigger Theory and the Bad Hedging
Itchy trigger theory is that when oil prices were at their lowest, the board get scared of what's going on here. And liquidate all the positions, realizing that loss. The idea is that if only they hadn't have done that, everything would have been okay. Liquidity issues ultimately forced the bankruptcy of Lehman and problems of any number of other banks. If money costs nothing, which back then it certainly didn't, we've had an entire generation of people who've just joined the financial markets who have never seen the financial catastrophe.
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