To: RayChuang88
One fast way to stop this inflation: change the minimum margin requirements (MMR) for equities trading in commodities and index futures from 5% to 15% immediately. How does the short term purchase of a futures contract cause inflation? If the buyer does not take delivery and hide the commodity, he has to sell the contract before expiration.
20 posted on
02/12/2011 8:33:02 AM PST by
Toddsterpatriot
(Math is hard. Harder if you're stupid.)
To: Toddsterpatriot
I think it reduces the numbers of players. More predictable.
22 posted on
02/12/2011 8:44:39 AM PST by
blackdog
To: Toddsterpatriot
It was too-low minimum margin requirements that caused the “bubble” that preceded the 1929 stock market crash. And the 2008 market crash happened for almost the same reason—remember the run up in the price of rice and crude oil in the commodities market during the first half of 2008?
50 posted on
02/12/2011 12:52:40 PM PST by
RayChuang88
(FairTax: America's economic cure)
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