Political Games at CFTC - Pinning the Tail on the "Speculators"

Started by The Minsky Moment, August 04, 2009, 06:53:12 PM

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Scipio

#15
August 05, 2009, 11:30:28 AM
From a certain standpoint, all commodities trading is speculation.
What I speak out of my mouth is the truth.  It burns like fire.
-Jose Canseco

There you go, giving a fuck when it ain't your turn to give a fuck.
-Every cop, The Wire

"It is always good to be known for one's Krapp."
-John Hurt

The Minsky Moment

#16
August 05, 2009, 12:34:12 PM
Quote from: Scipio on August 05, 2009, 11:30:28 AM
From a certain standpoint, all trading is speculation.

Fixed.  Viewed that way, the proposition becomes a truism.  And one not subject to any solution beyond nationalization.
The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists.
--Joan Robinson

The Minsky Moment

#17
August 05, 2009, 12:52:18 PM
Quote from: Admiral Yi on August 05, 2009, 09:09:52 AM
Quote from: alfred russel on August 05, 2009, 08:48:54 AM
If demand is inelastic, a small increase in demand can produce a large increase in price.
If demand and supply are extremely inelastic then what you are describing can happen.  But demand is elastic.  We saw it in the US: prices went up, driving went down. 

Worldwide energy demand went down as a consequence of the global economic downturn and that fed through to energy prices.  But even then there is a time period over which the adjustment occurs.  Its not like everyone shuts down all their plants overnight - it is a drawn-out process that plays out over many months.

What I've yet to see is solid affirmative evidence that links alleged speculation in the energy derivatives markets with spot market prices paid for physical quantities.
The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists.
--Joan Robinson

Razgovory

#20
August 06, 2009, 02:17:52 AM
Oh.  I was hoping this would be a browser game or something. :(
I've given it serious thought. I must scorn the ways of my family, and seek a Japanese woman to yield me my progeny. He shall live in the lands of the east, and be well tutored in his sacred trust to weave the best traditions of Japan and the Sacred South together, until such time as he (or, indeed his house, which will periodically require infusion of both Southern and Japanese bloodlines of note) can deliver to the South it's independence, either in this world or in space.  -Lettow April of 2011

Raz is right. -MadImmortalMan March of 2017
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