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To: Okeydoker

The futures market provides some very useful functions such as price discovery and hedging for the physical market so the companies lock in and/or protect against sudden price swings right before delivery of the physical commodity.

Sure, the traders play their games, but modern life in the real economy would be far more difficult without them.


36 posted on 07/02/2018 5:11:16 PM PDT by MichaelCorleone (Jesus Christ is not a religion. He's the Truth.)
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To: MichaelCorleone

I am no expert on this subject. My research has indictaed that speculation would be quite subdued if people were require to possess before they can sell. Owners would be hesitatnt to bid up the price for fear they would be stuck with goods they bought at lower prices. Now there is no such restraint. Buying and selling paper seems to me ripe dor massive abuse. And the trading houses make money on every trade.


38 posted on 07/02/2018 5:20:35 PM PDT by Okeydoker
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