zenalgorithm

'Index Speculators' Hoarding Commodities

Monopolies/hoarding of things obviously corrupt vibrant economies in the long run. There's a reason we have to break things up that coagulate and clog up the veins of business - otherwise we'll eventually have one lord, and billions of peasants.

The commodities markets are relatively tiny. For every $1 billion thrown long into the WTI futures contract the price of oil shoots up 16%. The current commodities market is broken and is easily manipulated. When the foods get manipulated by greed, people die.

Globalization is changing everything now, the commodities markets need to eliminate the speculators and hoarders who have no intentions of picking up product. Otherwise we'll have individuals and funds on a weekly basis cornering some market, somewhere and holding the rest of the world hostage.

Tuesday Outlook: Market Manipulation?

I was thinking the same thing about the DOW yesterday...that's the easiest one for the PPT to manipulate. The PPT seems to usually target just one of the indexes...then the others reluctantly follow and slow their descent.