Log in or Sign up
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
Scary stuff and more government control
>
Reply to Thread
Message:
<p>[QUOTE="Cloudsweeper99, post: 650040, member: 3011"]I don't think anybody wants to take away the futures market. And the main issue isn't about buying commodities in the futures markets. It is about selling commodities you don't actually own or have access to. If you wanted to sell futures contracts for an enormous amount of something, the commission is proposing that your transaction be limited to a certain [fairly low] number of contracts unless you can prove you either own or will have access to the commodity to deliver when the contract comes due. This limits the ability of speculators to affect the commodity price. I think that's a good thing. Others may differ and continue to believe that speculators should be permitted to buy or sell enormous amounts of a commodity through the futures market in amounts far in excess of the physical production of that commodity. That's an accident waiting to happen. Also, nobody is talking about permitting the government to regulate prices. They are only regulating the participants.</p><p><br /></p><p>Your farmer example is backwards. Nobody is trying to lower prices here. They are trying to raise them to free market levels by preventing speculators from selling commodites in huge amounts to drive down the price for reasons totally unrelated to supply and demand.</p><p><br /></p><p>What if there was a futures market for automobiles. Under current law, a speculator could sell a futures contract to deliver 10 million autos at the end of the year. Now that is clearly impossible, causes price manipulation, and threatens the price discovery mechanism of the market. What is being proposed here is that the market participant have the ability to actually deliver the 10million autos on the delivery date before they can write the contract. </p><p><br /></p><p>How is that bad?[/QUOTE]</p><p><br /></p>
[QUOTE="Cloudsweeper99, post: 650040, member: 3011"]I don't think anybody wants to take away the futures market. And the main issue isn't about buying commodities in the futures markets. It is about selling commodities you don't actually own or have access to. If you wanted to sell futures contracts for an enormous amount of something, the commission is proposing that your transaction be limited to a certain [fairly low] number of contracts unless you can prove you either own or will have access to the commodity to deliver when the contract comes due. This limits the ability of speculators to affect the commodity price. I think that's a good thing. Others may differ and continue to believe that speculators should be permitted to buy or sell enormous amounts of a commodity through the futures market in amounts far in excess of the physical production of that commodity. That's an accident waiting to happen. Also, nobody is talking about permitting the government to regulate prices. They are only regulating the participants. Your farmer example is backwards. Nobody is trying to lower prices here. They are trying to raise them to free market levels by preventing speculators from selling commodites in huge amounts to drive down the price for reasons totally unrelated to supply and demand. What if there was a futures market for automobiles. Under current law, a speculator could sell a futures contract to deliver 10 million autos at the end of the year. Now that is clearly impossible, causes price manipulation, and threatens the price discovery mechanism of the market. What is being proposed here is that the market participant have the ability to actually deliver the 10million autos on the delivery date before they can write the contract. How is that bad?[/QUOTE]
Your name or email address:
Do you already have an account?
No, create an account now.
Yes, my password is:
Forgot your password?
Stay logged in
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
Scary stuff and more government control
>
Home
Home
Quick Links
Search Forums
Recent Activity
Recent Posts
Forums
Forums
Quick Links
Search Forums
Recent Posts
Competitions
Competitions
Quick Links
Competition Index
Rules, Terms & Conditions
Gallery
Gallery
Quick Links
Search Media
New Media
Showcase
Showcase
Quick Links
Search Items
Most Active Members
New Items
Directory
Directory
Quick Links
Directory Home
New Listings
Members
Members
Quick Links
Notable Members
Current Visitors
Recent Activity
New Profile Posts
Sponsors
Menu
Search
Search titles only
Posted by Member:
Separate names with a comma.
Newer Than:
Search this thread only
Search this forum only
Display results as threads
Useful Searches
Recent Posts
More...