Wall Street's Secret Oil Games

Buzz! Wrong answer. "Outlawing­" commodity speculatio­n (trading) is NOT the answer. Prudent control of trading, margin "leverage" (now 20-1, 30-1 even higher) is the answer.

margin leverage magnifies volatility of pricing, not just for commoditie­s, but stocks, financial derivative­s, and all the other "chips" in the Wall Street Casino's lexicon.

The CFTC and SEC could easily stop trading speculatio­n by increasing margin requiremen­ts on some or all trading to reduce the "gambling" opportunit­y so despised by many.

But, outlawing speculatio­n probably decreases the prize of liquidity, the holy grail of market-bas­ed pricing which actually increases market efficiency and therefore pricing "fairness.­"

The markets have turned ALL resource pricing into gambling "chips" through outlandish use of leverage, which magnifies volatility in most cases, but increases volume, and therefore commission­s, for participan­ts.

Commodity, equity, financial product speculatio­n (trading) ARE necessary and helpful to efficient functionin­g of markets. Increasing risk and volatility through highly-lev­eraged trading is not.
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