DeltaCharlie

How Will CFTC Hearings Impact Commodity ETFs?

It wasn't too long ago (in 2008) when the CFTC said in no uncertain terms that the Oil price spikes to $147 were not the doing of speculators. They issued a report saying exactly that on their website. How is it credible now that they want to hold hearings to impose limits on speculators trading commodities. I think this is an absolute joke.

The fact there are speculators is the only reason that many of the producers are still in business. Take the liquidity away, you may very well get low priced oil/natgas, but you're destroying the companies that supply the market and reduce investment for future demand.

The problem that seems to consistently emanating from this Obama administration is its short-sightedness on how their policies are harming the free market. Big government in typical fashion blames everybody except themselves for the mess that we're in.

I foresee the unintended consequence of these regulatory policies hurting US companies when investors who provide liquidity to the markets start investing overseas into BRIC and other EMs. When that happens, they'll wish they'd never blamed the so-called speculators.