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.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (323032)	1/25/2007 7:22:15 PM
From: TimF	Read Replies (1) \| Respond to of 1574004

And haven't you told me in the past that free markets will take care of the problem. If there is extra demand free markets take care of the problem by increasing the price. That doesn't mean no one feels any pain when the price goes up. Allowing prices to adjusted will produce the most efficient solution, but that doesn't mean a painless one. The price merely reflects the increased demand without an equivalent increase in supply. It will encourage more supply, but there is a limit to how much extra corn can be produced. In the long run it might encourage shifts to other grains. In any case the situation here really isn't a free market situation. The demand for corn is growing because of government subsidies and requirements for ethanol. Also corn gets subsidies and controls, and now Mexico is trying to control prices of the tortillas produced with corn.