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To: Katelew who wrote (413272)2/26/2011 1:29:47 PM
From: LindyBill  Read Replies (1) | Respond to of 793964
 
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.

"Correlation is not Causation." Speculations are trying to find the trend, just like the rest of us when we buy and sell. Behind every price rise and drop is a real reason.



To: Katelew who wrote (413272)2/26/2011 2:00:52 PM
From: Brumar892 Recommendations  Read Replies (1) | Respond to of 793964
 
I don't think speculators are responsible for much of the rise in prices or are making people starve in poor countries ... there's a real change in demand associated with expanding use of biofuels. Seems to me that has to be bigger than temporary fluctuations caused by speculators.

I don't know how you make prices stop fluctuating. I can't imagine governments making any market change thats positive. Heck, I think government-imposed ethanol and biofuel mandates are a lot of whats driving the overall trend in ag commodities and thats more responsible for starvation in the 3rd world than someone speculating in commodities.