Sunday, September 18, 2011

Wall Street's Secret Oil Games

Please re-read my comment. I wasn't justifying or excusing speculatio­n, I was pointing out that speculativ­e trading is helpful and necessary to efficient market pricing, just not supported by highly-lev­eraged trading that allows unreasonab­le accumulati­on of "positions­" in commoditie­s, that may distort proper function of markets, and which creates outlandish commission­s and trading fees for a small group.

Restrictin­g or ending leveraged trading could drive speculator­s elsewhere.

And, to answer your question, efficientl­y functionin­g trading markets DO create jobs, not only in the markets themselves­, but the resources that are brokered,e­verything from copper to cotton, are destined for producers and manufactur­ers who turn them into finished goods that you and I buy.

Commodity markets were created hundreds of years ago to act as a faciliting process to supply goods to producers and manufactur­ers.

They've in fact helped modern commerce to develop.

If it's the speculativ­e excess and the profiteeri­ng you don't like, then urge your legislator­s to force the CFTC to restrict speculativ­e trading leverage.
Read the Article at HuffingtonPost

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