Let's Tell the Commodity Futures Trading Commission Where to Go
"The deadline looms for interested parties to respond to the Commodity Futures Trading Commission's request for comments about regulating prediction markets ("event markets" in the CFTC's usage)."
Posted 44 days ago
Jim Cowie
Responses to this thread:
todd:
i have to admit that i am baffled by the whole "speculation driving prices" meme. it's incoherent on its face. speculators take contracts that have risk based on price moves. if they are right they make money. if they are wrong, they lose money. the provide valuable indicators of risk in the market. russ nelson did an excellent write-up of this issue years ago.
notgneiss:
That's a good article. It reminds me of the accusations made during the "Reign of Terror" period of the French Revolution, when the death penalty was prescribed for "les accapareurs" (hoarders). Hoarding is a precursor to speculation in the absence of a liquid market. If I can't buy futures contracts on ham and cooking oil, I can at least put it in my cellar and wait for the prices to rise.
