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To: agere_contra

True, and even the legislation they’re considering won’t eliminate speculation. But the correlation is stil there - speculation decreases, the price drops. I don’t want to interfere in free markets any more than necessary. In this case, oil goes to people who produce, not people who endlessly hand stuff back and forth.


20 posted on 07/13/2009 1:47:18 PM PDT by domenad (In all things, in all ways, at all times, let honor guide me.)
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To: domenad
Correlation? Absolute rubbish. For example, consider one of the greatest crashes in futures mkt history: Dec 98 Lean Hogs.

As hog prices collapsed (cash got down to NINE cents/lb at one point), the open interest kept going straight up in Dec, then shifted to Feb and April.

I have the hard figures in hand, and you can get them too, at cftc.gov. Moreover, this is not the only such example of specs hitting the downside of a mkt viciously; examples are to be had in the crude and products mkts, also. Your generalisation is just silly, and your ''correlation'' ... well, 'laughable' comes to mind.

41 posted on 07/13/2009 2:06:58 PM PDT by SAJ
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