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Originally Posted by Tex
Your argument is like asking the feds to clamp down on the artificially inflated valuations of Internet companies in the late 1990s. Gov't only makes matters worse when it tries to regulate the market too much. Americans have gotten so used to prosperity that they want to be insulated from market cycles. Bad idea.
And from a political perspective, this is almost certainly a loser. The public at large does not pay attention to what futures markets are, nor do I think they are likely to buy the line that killing speculation will be the silver bullet toward lowering prices.
It takes about a 5th grade education to understand supply and demand.
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Tex, the futures market is not the market. That would be like saying the options market is the stock market.
People talk about the need for hedging, OK fine, let those people who are legitimately in the business or a related business do the hedging. Not huge hedge funds whose sole purpose is to specualte on where a commodity is going to go.
The liquidity argument is bogus. The liquidity is so tons of trades will go on and not only the speculators make (and lose), but the people who run the exchanges make a ton of money.