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

To: bentway who wrote (618463)	7/8/2011 2:31:29 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 1583675

Bentway, > One way to weed out speculation would be only to sell contracts to people who can TAKE DELIVERY! There's always going to be speculation in some form or another. For example, Southwest Airlines locked up a great multi-year deal on airline fuel back when the price was low. By definition, that would make them speculators, though they actually use the fuel they bought rather than sell it back. Other speculators, the kind that won't use the fuel they speculate on, will always find ways around whatever regulation you propose. Like I said, this is a global market. You can always find buyers and sellers. > Did you do as well? I don't buy houses to flip, but I know several coworkers who do. Too much hassle for me. I'm not impressed by "5x mortgage value" if said value is small and the result of many years of principal payments. Getting at least 100% return on your equity is pretty good, though, but that depends on time frames. Tenchusatsu

To: bentway who wrote (618463)	7/10/2011 8:46:36 PM
From: TimF	2 Recommendations Respond to of 1583675

One way to weed out speculation... Why would you want to do that? Speculators drive short term price swings, but in most cases those supplying and using the commodity or resource drive the long term moves. When speculators get it right they buy low and sell high (not necessarily in that order), smoothing out price swings. The housing market is harder to short (and less liquid and more leveraged), so you can have a bit more of a one sided effect from speculators, but the only way to drive such a large market up for so long on speculation is if ordinary people who do "take delivery" are also speculating when they do that. That is the type of speculation that drove the housing market so high. Forbidding buying houses that your not going to live in (if its even constitutional, and if it could be passed, if you could keep people from going around the law, sending them to prison if they say they will live in it and "change their minds", and if you don't care about liberty) wouldn't keep housing bubbles from forming.