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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Proud Deplorable who wrote (94387)5/17/2008 10:44:23 AM
From: I_C_Deadpeople  Read Replies (1) of 110194
 
"There is a crisis looming in the world's commodity markets, but it is has nothing to do with high prices, food shortages or the "peak oil hypothesis."
It has everything to do with the flood of capital into new financial instruments tied to commodity prices."


Chicken and egg argument I suppose (no food pun intended). Capital will only flood into a market IF there the potential to make money off the market. Commodities have been traded since the dawn of trading. Jesse Livermore, Arthur Cutten (sp) were big commodity traders at times. If the world was bursting with wheat, rice and corn as they were 20 years ago we would not be talking about this.

Hot money and smart money entered the market when they knew there was going to be tightening in short order.
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