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View Diary: SEC is giving “big banks license to manipulate commodities” (165 comments)

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  •  Like talking to a post (2+ / 0-)
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    bobswern, greenearth

    It seems that the belief that this or that new "investment" vehicle or trading strategy simplifies things to the point where the ordinary schmo or even a banker can now prudently speculate will never die.  Gee.  I guess we're on easy street from now on.  20 years of financial industry supervisory experience trumps reality every time.

    Life's lessons:  Bankers are greedy.  Bankers are idiots.
    However this particular baloney is being sliced, the banks in their greed will end by screwing things up and charging us for the favor.  They will of course market these ETF's to their customers as a "safe" way to play the commodities markets.  They will also take hedged positions AGAINST the interests of some of those same customers, just like they did with toxic mortgages.

    Allowing banks to participate directly in non-banking investment activities is a deal with the devil.

    Labor was the first price paid for all things. It was not by money, but by labour, that all wealth of the world was originally purchased. - Adam Smith

    by boatwright on Mon Jan 07, 2013 at 02:06:01 PM PST

    [ Parent ]

    •  Yes... (1+ / 0-)
      Recommended by:
      greenearth

      ...but, the other Kossack put forth a rather disingenuous meme relating to trading that has little/nothing to do with the commodities trading we're talking about in this post, which is: ETF (or otherwise) trading by non-commercial interests, where the trader is taking physical possession of the commodity (i.e.: "non-commercial being folks NOT trading for a price hedge for their own businesses, which is the diametric opposite of entities such as: airlines buying fuel for their planes, large supermarket chains and processed/packaged goods food producers, farmers hedging their crops, oil companies, gas distributors, etc.--where they intend to take/provide physical possession/delivery of the commodity; and this is something that's done in the credit derivatives industry, too), or firms without legitimate commercial reasons, such as firms just looking to make a big buck by cornering the markets at the expense of the public, etc., etc.

      "I always thought if you worked hard enough and tried hard enough, things would work out. I was wrong." --Katharine Graham

      by bobswern on Mon Jan 07, 2013 at 02:47:18 PM PST

      [ Parent ]

    •  This is exactly what I meant (0+ / 0-)

      personal attacks.

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