Soros Warns of Oil Bubble
Jun 3rd, 2008 at 12:16 am by Susie
They don’t have that many safe places left to invest, so now they’re driving up the commodities market:
Billionaire investor George Soros is to tell US lawmakers on Tuesday that “a bubble in the making” is under way in oil and other commodities and that commodity indices are not a legitimate asset class for institutional investors, according to a report Tuesday in the (registration-restricted) Financial Times.
According to prepared remarks, Soros will tell a congressional committee that while rising oil prices are the product of changes in the market, the commodity’s steep price rise is partly a result of large investment institutions putting money in the oil futures market — which is creating an oil market bubble.
