Comment by probligo
October 28, 2008 @ 9:37 am
“They also perform a valuable service for the economy by providing stability and certitude that wouldn’t otherwise exist, making commodies less volatile.
How so, Dave? “…stability and certitude…” from speculation and market wagers?
How does buying 250,000 tanker load of crude, then having it sail in circles somewhere south of Africa constitute a “stabilisation” of a market?
Why is it neccessary for there to be “profit makers” or “profit takers” sitting between producer and consumer. They add nothing to the value of the product, other than their profit for taking a bet on the price increasing.
Explanation required because that statement is entirely contra-intuitive. It makes no sense. It is water running uphill.
Comment by Dave Justus
October 28, 2008 @ 10:07 am
“How does buying 250,000 tanker load of crude, then having it sail in circles somewhere south of Africa constitute a “stabilisation” of a market?”
I’ve never heard of such a thing. If that is what you think commodoties speculators do, then I can see why the subject confuses you.
I can accept that Dave does not like me using simile to make a point, but it is his outright refusal to answer that point that is the major difficulty.
I challenged his statement that middle traders, future traders, commodity traders "providing stability and certitude that wouldn’t otherwise exist" and his only response was to indulge in petty denigration and avoidance of the question.
Well Dave, I guess that from now onward you are going to have to write your own comments to your pieces. Oh, yeah, forgot there are a couple others who float through from time to time. Some are interesting, others seem somewhat pornographic.
Yeah, it is your blog. You can censor what is said. So, I don't care all that much. Been nice meeting you.
Tis sad really.