Argyle

'Index Speculators' Responsible For Commodity Prices?

Color me ignorant, but it seems one of Masters' statements just plain doesn't add up. In his testimony he says

"There is a crucial distinction between Traditional Speculators and Index Speculators: Traditional Speculators provide liquidity by both buying and selling futures. Index Speculators buy futures and then roll their positions by buying calendar spreads. They never sell."

If you buy a calendar spread you have effectively taken both a long and a short position, else no spread. Saying they never sell may be correct on some level, but ultimately, when you need to be both long and short in order to create a spread, saying you never sold seems a distinction without a difference.

Should We Force a Housing Bottom?

Except that double taxation of investment properties would also have the unpleasant side effect of driving up rents. Making it even less likely that the lower middle class would ever be able to afford traditional financing.

Interest rate increases are the medicine that nobody wants to swallow. Just how far are prices likely to fall when the real cost of money is so darn cheap?