Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: palmer

Right.

But when the market, oblivious of the fundamentals, drives the prices outside the supply/demand curve’s pricing, then the market can crush the producers and consumers.

Before the CFMA in 2000, we had commodities markets. The markets worked just fine. The energy futures markets worked just fine prior to 2000, and prior to ICE, et al.

People who want to say that eliminating ICE or the CFMA would bring about dire consequences are talking through their hats. We’d just return to a pre-2000 world, when energy futures were regulated. No big deal. The markets worked then. There were speculators, but their position sizes were limited.


22 posted on 07/09/2008 9:19:36 AM PDT by NVDave
[ Post Reply | Private Reply | To 20 | View Replies ]


To: NVDave
Before the CFMA in 2000, we had commodities markets. The markets worked just fine.

For apples and oranges. The oil market was in a long bear that destroyed domestic production. Odd though, as the current bashers were basking in cheap oil then, they weren't bashing the speculators for making it too cheap.

24 posted on 07/09/2008 9:33:53 AM PDT by palmer (Tag lines are an extra $1)
[ Post Reply | Private Reply | To 22 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson