Author Archives: James_Hamilton

What happened to oil markets on Monday?

Here’s how it was reported, for example, in the Wall Street Journal:

Reaction to the Wall Street bailout and frenzied last-minute trading in the oil market sent crude prices soaring by more than $16 a barrel, the biggest one-day jump ever.

The late-day spike, which shoved oil up 16% to $120.92 a barrel on the New York Mercantile Exchange, offered an illustration of Wall Street’s hard-to-predict moves amid broad market turmoil.

And here’s what really happened.

Continue reading

Paulson bailout

Let me begin with the point on which I am in complete agreement with Treasury Secretary Henry Paulson and Federal Reserve Chair Ben Bernanke– it is hard to overstate just how scary this week’s developments in financial markets could be.

Continue reading