Banks aren’t lending money to businesses or people, but don’t worry Karl-Theodor zu Guttenberg, quit your moaning Alistair Darling, banks are doing SOMETHING to help out the common folk. They are getting into the supertanker business. Citigroup has booked two supertankers. Barclays has booked one supertanker, according to Reuters today. It’s a way for them to serve their commodity-trading clients, whofor some time have been taking advantage of contango — future oil prices that exceed present ones — by stockpiling cheap oil on the water while demand is low and selling it to the thirsty world in the future.
As the villified securitization market continues its sulk and the FT wonders if it wasn’t such an awful thing, after all, Deus Ex Macchiatto ponders whether there’s a tradeoff between financial instability and growth.