Futures contracts do not always have bad results. Southwest purchased jet fuel futures contracts before 2008 and as a result, they had higher profits during 2009 and 2010 as the price of jet fuel exploded. Their finance department made some very good judgments. Somebody else took it in the shorts, no doubt, but I'm happy that Southwest was profitable so I could get lower airline fares.
The answer is not regulating futures markets; the answer is letting people that really use oil, like Southwest, to have a chance to participate in these markets so as to minimize their risk.
I want less government in our national life and business. Period. I do not believe in benevolent government.
I totally agree. Southwest uses the oil, therefore taking delivery. No problem. They are the ones that need to buy them, not someone who has no intention of ever using or even needing the oil with the only purpose of running the price up or shorting it down creating an artificial market. IMO