Home / Markets
Wednesday, September 24, 2008
Cavuto: The Rescue Needs Rescuing
FOXBusiness
Missed tonight's Cavuto? Catch "The Deal" right here on FOXBusiness.com
The rescue needs rescuing.
And here's the deal.
No deal, unless we change the deal, and fast.
That's not democrats saying that about a $700 billion rescue package that looks like an increasingly fragile package.
That's the republican presidential candidate John McCain.
He's heading back to Washington.
Suspending his campaign, and promising to roll up his sleeves.
And get this, calling for cancelling Friday's big debate with Barack Obama to cobble together something...anything...to get this financial bailout off life support.
President Bush himself set to address the nation tonight. He too sensing this thing ain't looking like quite a sure deal anymore.
Treasury Secretary Hank Paulson got a clear sense of that in testy hearings today.
So too fed head Ben Bernanke.
They pitched.
Congress bitched.
And stocks?
Well, they just kinda sat.
Not moving...clearly waiting for someone, anyone to move.
By now, we thought we'd have a great deal.
We do.
FOX Translator
No data currently available.
No data currently available.
No, it's not a dance craze. Contago is a condition of supply and demand, essentially a fancy word to say that prices for items, typically commodities, are cheaper now than they would be at some point down the line.
Anything that¿s sold in the futures market can be in a case of contango. Futures are exactly that: a contract to buy an item or asset at a price in the future. This is the case with oil, with traders buying and selling contracts to acquire a barrel of oil in months down the line. When a market is in contango, spot prices, or the price of a commodity if you were to buy it right now, are lower than forward prices.
Why is that important? Well, it usually tells you the supply of a given commodity is plentiful (since, according to Economics 101, a large supply usually leads to cheap prices).
Incidentally, if you think contango is a mouthful, its opposite condition is known by the equally tongue-tying term backwardation.
