Calling all DUers that are on Facebook to support OWS by posting this article to your wall

[roseBudd]

You bet it’s another bubble

http://www.washingtonpost.com/business/economy/steven-pearlstein-you-bet-its-another-bubble/2011/10/31/gIQAKOtxnM_story_1.html

today, because of a sudden desire to earn higher returns and diversify investment portfolios, there are more people wanting to invest in corn and copper and oil than there is corn and copper and natural gas produced and consumed. But no problem. The financial wizards on Wall Street have magically conjured up synthetic corn and copper and West Texas oil so that speculators can provide hedging opportunities for other speculators. Instead of 30 percent of the market, these “passive investors” typically account for 70 percent or more....

The strong demand for commodities futures also put upward pressure on the actual prices paid for those commodities by real producers and consumers, if for no other reason than many private sales contracts are settled at a price linked directly or indirectly to futures prices....

What’s clear from this tale is how little the financial services industry has really changed since the crisis of 2008. The financialization of the economy continues undeterred, creating a bubble in commodities just as it did with houses and office buildings. The industry is still engaged in clever games to circumvent regulation, increase risk and find the cracks between one regulatory agency and another. And when regulators step in to try to restore some sanity to the markets, they inevitably run into a political buzz saw created by the industry and its Republican allies...

Now you can bet what’s left in your 401(k) that there’s about to be a commodities bubble — one that will generate big fees for Wall Street and leave a mess for everyone else.

[Cirque du So-What]

1. One of my major problems with laissez-faire capitalism

is the ability of the wealthy to manipulate prices on the basic staples of the economy...and I don't have much sympathy for small-time players, who - IMO - are playing a sucker's game with money they can't afford to lose.

[roseBudd]

2. Rising energy prices caused by commodities speculators was the one two punch that took the global

economy down.

One problem is this stuff is hard for Joe Sixpack's to understand. That is why I love Pearlstein's business columns

[Frustratedlady]

3. There must be something that can be done to stop this madness.

Isn't the rise in food prices mainly due to speculation, as well as gas...the collapse of the housing market? How much does computer trading 24/7 have to do with the rise?

Wouldn't we get some return by putting a transaction fee in place? Didn't they remove that? At least, we could build some kind of buffer to pay for their folly.

Just askin'.

[roseBudd]

4. When the 99% demand it rather than worry about Chaz Bono & the gay and or abortion agenda

We have to help the 99% see how they are being screwed

Share it on Facebook

[Frustratedlady]

5. Done! EOM

[cyrakitty]

6. Done

Thanks for sharing the article

[roseBudd]

7. Kicking it for OWS