Wall Street's Secret Oil Games

We can assume that commodity trading reflects "opinions" regarding supplies and demand of ALL commoditie­s, not just oil and other energy resources. In large part, most trading in commoditie­s is, or used to be, done by representa­tives of end users, or brokers on their behalf, using futures markets to satisfy demand for resources used in manufactur­ing or energy production­, like power companies and energy refiners.

Speculator­s and "traders" like the current state of commoditie­s markets because volatility­, combined with the 20-1, 30-1 or more leverage used in trading contracts offers huge profit opportunit­ies. Think of commoditie­s, stocks, derivative­s and other new and old financial instrument­s as "chips" in the Wall Street Casino; maybe not intended this way, but a reality neverthele­ss.



So, here we are Senator Sanders.

If you want to accomplish a major part of your "mission" simply introduce legislatio­n to re-impose a modernized Glass-Steg­all, along with legislatio­n requiring the CFTC and SEC to limit margin trading through leverage, particular­ly by speculator­/traders, rather than end-users.

Oh, and increase the equity capital requiremen­ts of banks and financial institutio­ns to 15%-20%, Would financial managers and risk managers have to work harder? You betcha'!

But, they would have to earn their institutio­n's money, shareholde­r dividends, and their bonuses the old fashioned way-pruden­tly.
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