> The profit Sumitomo expected to make this year, a hefty $2.27 billion, has been
> all but wiped out. News of the disaster atomized 13 per cent of its stock value in one day.
> Its credit rating went to “negative.”
Excellent news! Shame that the first-in/first-out capitalists have coined a very nice
profit off this disgracefully exploitative & polluting industry but at least some of the
subsequent supporters have bitten a tasty bullet.
> Itochu Corporation, Japan’s third largest trading company, has written off 80 percent
> of a nearly $80 million investment in a US fracking company.
> And then there is Shell, which took a $2 billion hit last August
Burn baby burn.
I also like the straightforward explanation in the linked article:
> Every Ponzi scheme and bubble is based on the Greater Fool hypothesis of investing,
> which is that the real value of the assets you’re buying don’t matter as long as you can find
> a greater fool, someone who knows even less about the assets than you do, who will
> buy them from you. When you run out of fools, the market crashes.
Special mention for a classic phrase:
> With Sumitomo bailing now — that is, selling its leases — the search for the next
> greater fools is becoming really intense. They are going to experience peak fools very soon.
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