Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: philv who wrote (1779)	11/3/2003 10:26:58 AM
From: glenn_a	Respond to of 110194

Hi philv. "But I really can't understand the commodity price surge. These commodities are either going into world wide manufacturing or are being stockpiled." Actually, I'm not sure either of these scenarios is necessary to drive commodity prices higher. Speculative capital could easily manipulate the price of the physical via sheer speculative capital flows. This is my sense anyway. Financial and underlying asset markets are SO driven by speculative capital flows its scary. Russ or anyone, any comments on the veracity of this statement? Am I off base here? So while I do concur there is a genuine macro story re: commodities, commodity pricing action "at the margin" (which is where prices are set) is very significantly driven by speculative capital. JM2C on the matter. Regards, Glenn