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To: Brumar89 who wrote (413251)2/26/2011 12:59:07 PM
From: Katelew  Read Replies (2) | Respond to of 793912
 
Yes, I said that in my original post. Eventually prices will revert to the mean of the trendline.
Speculators, or hot money, will move on to something else, or they will stay in that particular commodity but reverse their net positions, i.e. go from long to short.

The question is how much should a society tolerate in terms of the damage done in the short term by these massive shifts of hot money? I already mentioned starvation in third world countries.

I live in a part of the country with lots of small trucking companies and individual truckers. When oil was spiked up in 2008 all out of proportion to supply considerations, many of these folks went out of business.