What nonsense. In the futures markets there has to be someone on the short side of every long contract and the shorts help keep prices in line. In a pure cash market there is no practical way to short so prices can reach even higher peak levels than in a futures market. The lack of an active futures market in steel hasn't stopped steel prices from going through the roof.
If we start taking our cue's from India the whole world is not what I thought it was. India is a great growth story, and due to demographics alone it should remain so for a long time, but the government of India is held together by a very fragile co-illition most of the time, with communists and very left wing socialists having their say on most important matters. This is especially true on the state level from what I understand.
Markets are never rational nor balanced. happened with the Hunt brothers cornering Silver. Only that time they had wall street by the balls. Caught on the wrong side of the trade, the greedy fucks on Wall st. didn't go away. They went to congress and changed the margin requirements. This time the greedy fucks on wall street have the rest of the world by the balls. And congress in their back pocket, corrupt as usual. These are the type of operators running the great oil swindle. http://www.reuters.com/article/newsOne/idUSN2139523420080521 The threat of jail time isn't enough of a deterrent for some of these greedy fucks.
http://seekingalpha.com/article/78440-the-oil-shortage-and-other-fairy-tales I'd love ANYONE debate Masters.
If that is true, then how do you explain commodities that have no futures markets, but which have gone up even more than gold or oil? What about the many stocks, with a whopping 50% margin requirement, which have gone up further than gold or oil?
Economic studies of futures vs non-futures markets have consistently found greater price volatility in the latter.
Spend a dollar or .6 Euros, to read the 5/23 WSJ. They explain much of what is happening in the futures markets as a function of bets gone bad and forced buying. I stand by my thesis. Do you stand by yours?