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Seems like having too many "investors/speculators" accessing commodities is a bad idea... Investors who don't know much about the supply and demand shifts and aren't part of the industry are causing such dramatic turmoil in these markets.
-chuck22b
Investors are out to make a buck. The last thing they want is to take delivery of said "purchased" commodity. They are in and out, just like the stock market..bottom line is profit, nothing more.
Investors are out to make a buck. The last thing they want is to take delivery of said "purchased" commodity. They are in and out, just like the stock market..bottom line is profit, nothing more.
Well, I guess once they, the so called profit investors, fund managers, move out... there's going to be a huge surplus of grain, wheat, corn, etc.
The people that get screwed here are the farmers with margin calls when contracts dry out, and consumption falls far short of supply. There's gonna be a huge surplus of food stuffs and a market for grain storage, and lots of lost/spoiled food stuffs.
Thanks Investors/Speculators for creating another "faux" bubble for "Profit". Hmm... where's the regulators when you need them?
The regulators are staying out of it because they realize that, while futures markets are imperfect mechanisms, they are nothing compared to the massive instability we would have in the supply and prices of ag commodities without them.
The regulators are staying out of it because they realize that, while futures markets are imperfect mechanisms, they are nothing compared to the massive instability we would have in the supply and prices of ag commodities without them.
I guess we can all take comfort and be happy in a few months or a year when prices for food/commodities drop when investors move on to something else. Hopefully farmers aren't over investing... and saving some of their current gains to weather the future price drops.
I agree, this is just a bubble of sorts. Same with gas prices to some extent. I think gas will play out a bit different though, I think oil prices will drop for a bit and then get back on track to its ascent toward the sky.
I agree, this is just a bubble of sorts. Same with gas prices to some extent. I think gas will play out a bit different though, I think oil prices will drop for a bit and then get back on track to its ascent toward the sky.
Agreed. Especially if one subscribes to the peak oil theory.
Well peak oil isnt a theory. Theory is a idea that isn't proven. Hubbert's "theory" was proven when the U.S. oil field peaked and subsequently dried up. He also said the same of the big oil field in Baku and one of the field in Columbia and those two peaked and dried up. Oil doesn't regenerate itself so it is natural that it will disappear after awhile. Oil fields being found now are harder to get too than the saudi fields and hence that cost to extract will be passed on to end users as it should be.
Wouldn't it be neat if they created a "Water Future's market"...
I wonder if there'd be tighter regulations and restrictions on who can be in the market then? Otherwise... I guess half the world could just die since your too poor to live.
Well peak oil isnt a theory. Theory is a idea that isn't proven. Hubbert's "theory" was proven when the U.S. oil field peaked and subsequently dried up. He also said the same of the big oil field in Baku and one of the field in Columbia and those two peaked and dried up. Oil doesn't regenerate itself so it is natural that it will disappear after awhile. Oil fields being found now are harder to get too than the saudi fields and hence that cost to extract will be passed on to end users as it should be.
Wild..ya know I was trying to not get any feathers ruffled with my statement so it was carefully worded
Not everyone thinks we have peaked..hence to them it is still a theory.
Wouldn't it be neat if they created a "Water Future's market"...
I wonder if there'd be tighter regulations and restrictions on who can be in the market then? Otherwise... I guess half the world could just die since your too poor to live.
-chuck22b
I am at work now but when I get home I will find this documentary you should watch. it is about water and what happens when you commercialize it. It can be really ugly!
Quote:
Originally Posted by HappyTexan
Wild..ya know I was trying to not get any feathers ruffled with my statement so it was carefully worded
Not everyone thinks we have peaked..hence to them it is still a theory.
Me...I took the red pill.
what do you mean by "we"? If by "we" you mean Saudis then yeah, no one knows but them. But if by "we" you mean America then all they have to do is drive through the old oil fields in texas, they are dry and empty as hell. That is a fact that can not be denied. Well it can be denied, but it would just be silly to do so.
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