Chocolate Finger corners the market

Discussion in 'Economics' started by Covertibility, Jul 25, 2010.

  1. This reminds me of the oil bubble a few years ago when hedge funds and investment firms were buying oil, storing them on tankers and then parking the tankers offshore to drive up the price. The cost was $0.50-$1.00 per oil per day but the oil service stocks would increase roughly $2 per $1 increase in the price of oil.

    Now we see Chocolate Finger:

    Trader’s Cocoa Binge Wraps Up Chocolate Market

    In a stroke, a hedge fund manager here named Anthony Ward has all but cornered the market in cocoa. By one estimate, he has bought enough to make more than five billion chocolate bars.

    Chocolate lovers here are crying into their Cadbury wrappers — and rival traders are crying foul, saying Mr. Ward is stockpiling cocoa in a bid to drive up already high prices so he can sell later at a big profit. His activities have helped drive cocoa prices on the London market to a 30-year high.


    Where the hell is Goldman Sachs in all of this? Who do we blame: Barney Frank? Community Reinvestment Act? Bill Clinton? Nancy Pelosi? Islamofascists? Acorn?

    I'm sure the economics departments see nothing wrong with running up the price of things by those who have the financial power to do so. O lawdy, we sure as hell don't ne no stinkin' regulation.