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bruce MN
Advisor

The speculator 2

Dennis Kelleher and panel:

 

http://www.msnbc.msn.com/id/31510813/#46710459

 

Never heard of this guy but he should be on somebody's advisory team.

 

22 Replies
BA Deere
Honored Advisor

Re: The speculator 2

Here`s a serious question that I`d love to get an honest(plain English) answer to.  Now, about a year ago silver prices on the board went nuts up to $50/oz, margin requirements were raised and silver dropped to $30...If "speculators are the problem!" why not raise margin requirements on oil contracts???????????   Of course, what happened in silver is the physical market took on a life of it`s own and the board is littler more than a joke.   The guy ain`t as smart as you think, Bruce he`s a political hack laying the brick work for government intervention.

hardnox604008
Advisor

Re: The speculator 2

Thanks for the link.  Moderate, reasonable and essentially correct.

 

But as I've said, I am beyond despair in the regard to the fact that there is absolutely no possibility of the there being much if any broad public understanding of these moderately complex issues.

 

You can study a situation extensively and explain until the cows come home and people will run away and seek out a simple answer that conforms with their sense of identity. And there are well compensated people working 24/7 to manufacture those answers.

 

The only hope is that there are some adults in the room who make good public policy. However, the goal of everyone who games the system has been to get rid of them and put puppets in their place.

 

The best way to get those puppets in is with made up issues about sex, religion and identity.

 

This is an important issue to everyone and farmers especially. We'll see how many comments this thread gets as opposed to something about religion, sex or reality TV political persoanlities.

 

 

bruce MN
Advisor

Re: The speculator 2

The first respondent from the panel... a correspondent/columnist from a big newspaper proves your point, which you've made a few times lately.  He thinks it works lke they told him in 101, 20 yearsa ago.  Now he writes about it for a living and shows that he gets none of it.

 

Whether it's 600T, or more like 900T as some say....and it's more revealing and scary than anything else that nobody actually knows....we've just been shown with MF Global that 25% can not only disappear but actually be potable.  If only it would just disappear...but the whole system is set up to enable somebody to run off with negotiables.

 

 

BA Deere
Honored Advisor

No one wants to answer my question..

...soo I`ll just talk to myself Smiley Happy  Okay, to have any discussion about "high" gas prices, this from Energy Sec Chu MUST be addressed http://www.youtube.com/watch?v=K-pAvg6McPQ    See, the guy that Obama appointed the Secretary of Energy wants high gas prices..high gas prices is THIS administration`s goal.  If you want high gas prices then by all means vote to re elect Obama in November.  If Ratigan was going for a fair and balanced interview, that expert would`ve been grilled on that issue of high gas prices being the goal.

sw363535
Honored Advisor

Re: No one wants to answer my question..

When I here some one blame the flow of money for the actions of the market, I know there is a "snow job" going on.  Like blaming the air for wind and clouds to promote a new public out cry-----------No---wait-----we already have the epa.

 

This may not be an interview-----------------it may be an infomercial.    

 

msnbc does a lot of infomercials.  

kraft-t
Senior Advisor

Re:Help me understand

If in a commodity trade there is an equal and opposite position for each transaction how does that equate to inflated commodity prices?

 

The only thing I can see is that the huge volumes of spec trade will actually dwarf actual buyers and sellers so that fundementals play an increasingly smaller influence on prices.

 

So what is the solution? Limiting speculation to individuals? Increasing margin requirments? Transaction tax?

BA Deere
Honored Advisor

Re: No one wants to answer my question..

Even Kraft doesn`t understand their malarky.  Hold on to your wallet, Buddy Smiley Wink

kraft-t
Senior Advisor

Re: No one wants to answer my question..

If indeed  high gas prices is the goal, How would the administration make that happen? If they thought lower gas prices is the goal, how would they make that happen? Or how would you make that happen for that matter?

r3020
Senior Advisor

Re: Re:Help me understand


@kraft-t wrote:

If in a commodity trade there is an equal and opposite position for each transaction how does that equate to inflated commodity prices?

 

The only thing I can see is that the huge volumes of spec trade will actually dwarf actual buyers and sellers so that fundementals play an increasingly smaller influence on prices.

 

So what is the solution? Limiting speculation to individuals? Increasing margin requirments? Transaction tax?


If the buy orders are coming in at a rate of 10-1 to sell orders it will put an upward pressure on the price.

 

I would say the number of contracts anyone can hold.