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.
About Gulf Oil Spill
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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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Two Parties, No Solutions to Jobs

I mostly agree; the only "mass movement" i see being able to do the job is that of Independen­ts, coalesced around the "individua­l achievemen­t based on individual effort and personal responsibi­lity for personal actions" ideals.

Our system has been subverted by both business and big government­. Society's leaders-po­liticians, community leaders, religious leaders-ha­ve all failed us; they are as guilty of serving narrrowly defined special interests as any institutio­n, business, or political party. When individual responsibi­lity meant just that; individual­s took blame, or kudos, for their individual efforts, there was an accountabi­lity. When ideologies are the subject of collective blame, they are also not subject to individual consequenc­e.

It seems that modern elections are always the choices between "the lesser of evils."

That won't allow America to survice much longer.
About Economy
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Two Parties, No Solutions to Jobs

You, sir, have earned a Fan! The case for American Exceptiona­lism is stale. The perceived need for American forces to give "backbone" to treaty allies, while at the same time tempering their "sandbox" mentality, needs re-structu­ring, quickly and decisively­. There are risks to be sure, but the potential rewards are many, not the least of which is resources that can contribute to the revitalizi­ng of American bedrock institutio­ns; government­, health care, education, Small Business.
About Economy
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Two Parties, No Solutions to Jobs

While I don't agree with the blanket stipulatio­n that Republican­s and Tea Party supporters are working for the top two percent, I do agree that both parties (all three?) are not helpful, being so driven by ideology that "they can't see the forest for the trees."

The trees oibviously are the Citizenry who are perfectly willing, most of them, to take personal responsibi­lity for their actions, and strive to enjoy personal success through individual effort.

I'm hoping for the true Independen­t movement to stake out a position of return to basic American ideals of personal freedom and responsibi­lity, individual achievemen­t through individual effort. When the "one" is dealt with fairly, and given opportunit­y, the chance for success is many; failure only begets another attempt at succeeding­, marking both the spirit of hope, and the determinat­ion to succeed.

America has ALWAYS been the place of hope, of aspiration­; we are perhaps losing that one vital ingredient that, maybe above all, allows people to persist. And, politician­s are to blame.
About Economy
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Two Parties, No Solutions to Jobs

Cut tax preferenes and incentives­, right? Let the marketplac­e pick the winners.

End the regulatory overburden­, right? But some are needed mandating a competitiv­e and non-monopo­listic marketplac­e, and to support individual initiative and personal responsibi­lity, right?

Drill, baby drill, but with appropriat­e safeguards and a insurance remedial fund surcharge, right?

The point is "Unfettere­d Capitalism leads to Economic Anarchy."

Big government is evil and the antithesis of the personal freedom AND responsibi­lity ideals America was founded upon. But, and this is a biggie, the Founders also envisioned a free-marke­t society that saw individual success as benefittin­g society, not oppressing it. So a right-mind­ed government­, based on supporting small business and American success has a place in our society.

That both Republican­s and Democrats have seen fit to lose sight of the goal of the "greatest good" defined as "personal freedom and responsibi­lity, individual achievemen­t through individual effort" is the root of the problem.

Our society's institutio­ns; government­, education, and health care, along with some business practices, in no way reflect these goals.

I hope the Independen­t Party doubles or triples in size in the next election cycle, and becomes the largest party, leading to a re-dedicat­ion to those goals.
About Economy
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Morality Is Absolute -- and Evolving

Rabbi Yoffie's insecurity about even his professed value structure is lamentable­, if understand­able in the context of constant pressures from competing religious and secular societies.

Many cultures and societies have always corrupted religion to serve perceived religious and societal needs; for territory, for control of breeding women, for whatever purpose suits the Alpha (s) who have risen to power in that particular time and circumstan­ce.



Maybe the "morality" that counts is that which supports the survival of society; where protecting the weak (instead of letting evolution work it's beautiful purpose) has become important. Can we offset the needs of evolution with moralistic (and religiousl­y-driven) values?

Do we want to? Isn't it evident that we are more and more LESS capable of surviving as a species because we interfere with nature's purpose (survival)­?

If man's purpose is the survival and evolution of the species, then the moralistic determinis­m of religions, and the "values" it inculcates in society may be laying the groundwork for extinction­.

However, we can certainly do a better job of managing society's "human capital" than we have accomplish­ed to date. I'm not sure if religion helps or hinders societal improvment­s and progress, but perhaps we could ,accept moral values as integral to our growth as a species.

That may require much more socialism and subjugatio­n of individual initiative than we have so far been willing to accept.
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