zenalgorithm

Speculators Driving Up Commodity Prices? Hardly

The commodities market is being manipulated and artificially inflated. Why did cotton skyrocket a few months ago - it wasn't supply and demand...?

I believe that the commodities market is a huge bubble that is going to eventually crash, but in the mean time, the manipulation is going to kill a lot of people in the third world. Energy and food can't be allowed to be potentially manipulated, they definitely need to be removed from the indexes and heavily regulated to stop abuses from the investment banks and hedge funds.

Speculators Driving Up Commodity Prices? Hardly

So funds which have added almost triple the amount of equity to the entire commodities market, don't have an effect on the price?

Give me a break. The entire U.S. commodities market was smaller than MSFT, GE, or XOM.

The commodities market is broken. It's like putting a Ford Escort engine into a bus and pretending that it's going to keep on trucking.

Goldman is making a killing on rolling contracts through their GSCI index - it amounts to legalized front-running.

'Index Speculators' Responsible For Commodity Prices?

I think hedge funds with the help of the investment banks are manipulating this price up - index funds buying each month help add volume to sustain the upward trend. I would not be surprised to find out in a few months that some oil producing nation was using a hedge fund to push this up.

There needs to be strict regulations as to who can trade the food and energy commodities. Manipulating stocks is one thing, but manipulating the commodities leads to famine and death. The commodities can't be allowed to be manipulated.

Too Much Money Chasing Too Few Commodities

Outstanding article!

Greenspan made it so that I couldn't afford a house.

Bernanke is making it so that I can't afford anything else.

At least the FED is doing one thing right - they've allowed our banks to retain their AAA values.