Markey = the one on the left......
Posted on 05/22/2008 12:31:15 PM PDT by gleeaikin
The global financial system these days is beginning to look like a giant Whac-a-Mole game--when we think we've knocked down one speculative bubble, another one just like it pops up.
The latest is the commodities bubble--everything from oil and natural gas to gold, copper, wheat and rice....Like the credit bubble, this speculative bubble in commodities has badly distorted the workings of key markets and sectors of the global economy....this bubble is creating vast new wealth for some, including brokers, traders and investment houses who have gorged on fees and trading profits.
The difference this time, however, is that even before it bursts, this bubble is causing economic discomfort for households and businesses around the world, and misery for hundreds of millions of hungry people who suddenly cannot afford a bowl of rice or scrap of meat.
Speculators have always played a prominent role in commodities markets, but in the past year, they have literally overwhelmed them, causing a dramatic increase in trading volume, volatility and prices and disrupting many of the normal relationships between producers and end-user....But perhaps the biggest push came from pension funds, foundations and university endowments....
To meet the needs of these investors, Wall Street and Chicago's commodities houses came up with all sorts of new vehicles, including exchange traded funds, index funds, and structured investment vehicles--the commodities equivalent of mortgage pools and asset-backed securities.
The [Commodities Futures Trading Commission] last week decided to hold off on plans to raise the limits on how much any one fund can speculate on any commodity.
I suspect...the industry, which has always called the tune at the CFTC, fears a backlash in Congress that could usher in an era of tough new regulation of commodities trading as part of a broader package of financial regulatory reformsl.
Government intevention in any markey causes more harm to the consuming public than it does to tame the market.
“markey” = market
Markey = the one on the left......
I’m wondering if all this “speculation” is really just a bunch of people with computers at home playing Day Trader?............
I guess you could call your what you wrote a Markey Post.
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