This is solely to do with A) Capital pools, principally pension funds and related types of funds, getting together with investment banks in order to avoid/evade position limits in futures mkts, and B) the incompetence of the Regress in recognising this, accompanied by their dildonic refusal to push for enforcement of **EXISTING** law.
Hey, you asked. 'Course, I've only been in the futures mkts for 36 years. What the hell do I know, eh?
FReegards to you!
Well, sometimes people really are OUT TO GET US. heh heh heh...
What the hell do I know, eh?
Once again, I've appreciated the postings and the education you've provided. I fully admit that I know nothing about futures markets, which is why I read these posts, trying to make sense of it all.
Freegards back at ya!
B) the incompetence of the Regress in recognising this, accompanied by their dildonic refusal to push for enforcement of **EXISTING** law.
Shouldn't the enforcement come from the Attorney General, federal or state, as an Executive function ? Or are you making this commentary in response to the idiotic hearings held by Congress, where they interrogated the oil company executives, instead of, as you have laid out, called for the enforcement of existing law which would have avoided the kind of speculation by institutional investors of which we are now reaping the whirlwind ?
It appears to me that Congress is as you describe it, and President Bush and his Executive function is a spent force.
Thanks and FReegards.
The "fundamental theorem" of welfare economics [no, for the unwashed, not that kind of welfare], i.e. that competitive markets provide the most efficient allocation of resources rests on three conditions:
1.No information asymmetry
2. No monopoly power
3. No externalities (i.e. 3rd party effects)
Each of these conditions are violated under this arrangement with certain banks to avoid trading limits.
In other words, to oversimplify for those to whom these words are unfamiliar, in those futures markets where these kinds of arrangements exist, the market is no longer what the economics profession would regard as a free competitive market.