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Politics : Politics for Pros- moderated

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To: Bridge Player who wrote (256211)	6/30/2008 3:34:11 PM
From: skinowski	Read Replies (3) of 793897

I'm thinking that instead of a guaranteed profit of $10 I'm in a world of hurt. Not quite... in your hypothetical scenario you would still keep your $10 of profit. Of course, in the case you describe you would have made much more by just shorting a contract at $160. Would be no problem arranging a delivery at $120 in this case... :) In reality, most specs, including the recently infamous long only commodity index funds - wrongfully accused in bidding up prices - would close out their positions (both long and short) a long time before the expiration, at which point the only parties still at the table would be the actual buyers and sellers of the commodity. The final spot price is what "anchors" the prices of further out futures, and most futures "investors" are not unlike bettors on sports - if they are right, they win; if wrong - lose. But they do not influence the outcome of the event to any meaningful extent, no matter how many bets are made. Many politicians don't grasp this, or at least act as if they don't. Maybe they must have someone they can "blame" for the high prices.

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