Thursday, March 22, 2012

Refreshing Candor from Emirates President #TimSmith

Interesting piece via Bloomberg Emirates Says 'Whole Load of Airlines' will Fail in Fuel Squeeze. In it Emirates President Tim Clark had some surprisingly candid comments in the article.

Check out this doozy of a comment from Clark;

according to Clark, who says he’s sticking with a no-hedging strategy rather than risking a losing bet. “You think you’re going to win, but in the long term you always lose,” Clark said yesterday at the Gulf carrier’s head office near Dubai International Airport. “When we enter into derivatives, betting whatever it may be with counterparties who actually control the price of fuel in the first place, you have to ask yourself, ‘Is that smart?’”

So here we have a cat Tim Smith, who gets it. Maybe more like him will get it. He basically told you the derivatives markets are rigged by a den of thieves. Okay, maybe I'm just reading between the lines, engaging in hyperbole yet again. (wouldn't have anything to do with free, walking around speculating money from the Fed now would it?)

Actually maybe Mr. Smith should just consider doing business with Goldman Sachs. I hear they get you great execution and only front run you if they absolutely have to . Hell, Warren Buffett thinks they're aces, swears they've done right by him. I'm hearing they treat their clients first class, like cuddly little TV creatures called Muppets and who doesn't like cuddly little TV creatures?

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