zzyzx

Dow Will Equal Gold in 2009

Somebody please explain to me why these big mining companies let traders on a Futures exchange set the prices they get for their wares?

The airlines don't do it. They set their own prices and see how many seats they sell. Sure, one will try an increase and if the rest don't follow, they may have to cut it back to where it was. They need $ now to pay the bills, just like the miners.

But Freeport McMoRan CEO Richard Adkerson said recently that they are selling all the copper they produce. The only reason they are cutting production is because it's unprofitible to mine at full productoion at these prices.

He seems to accept the idea that it's not up to him to set the price of his goods.I think his company is big enough to put a price on their goods and make the buyers pay it.

Maybe Congress should take a good look at these Futures markets and limit the participants to those who have an interest in production or consumption. I know I got emails from Northwest Airlines last summer asking me to write my congressman about this very issue. It was their opinion that oil prices were being run up by day trading speculators who collectively made a few bucks for themselves while transferring billions or trillions of our $ to the Middle East.