gabe borenstein

Institutional Speculators Disrupt Futures Markets: The Evidence Mounts

Nothing radical was disclosed by the Wall Street Journal.I have argued for more than a year that the the record,massive speculation is driving commodity prices up ,not the final demand. One more time ,on September 18,2007 during the Bloomber TV interview(Brian Sullivan ),I have specifically blamed the record leveraged commodity speculation on the geometric increase in the commodity prices. Clearly then ,since the final demand is not responsible for the "inflation",the ECB should focus more on economic risks which are about to lead to the economic decompression in Europe.Fortunately ,the FED had seen the light much earlier and addressed potential problems via easing.
Perhaps now ,the FED could focus more on the monetarry accomodation to deflect the vestiges of economic questions lingering on the Wall Street .More importantly perhaps the ECB will ease drastically deflecting potential disaster.
Let the CFTC and the relevant exchanges address the speculative issues discussed in the Wall Street Journal.