Ban the futures/options in oil market and oil will drop to $10

Discussion in 'Economics' started by misterno, May 9, 2011.

  1. Trader13

    Trader13

    Misterno, that's a fascinating statistic. Can you please provide a reference? Thanks in advance ...
     
    #11     May 10, 2011
  2. heech

    heech

    Sounds like the farmers (and onion consumers) are exposed to a huge amount of financial risk because of the lack of speculators. Onion prices moved up 300%, and then moved down 75%, in two years!? That's even more volatile/crazy than silver.

    That'd be equivalent to crude moving up to $300 by 2012, and then dropping back down to $100 in 2013. This is a good thing in your eyes?

    None of the other commodities with active futures markets have seen moves anywhere *close* to that.
     
    #12     May 10, 2011
  3. Illiquidity and volatility love each other.
     
    #13     May 10, 2011
  4. #14     May 10, 2011