Has The CFTC Lost Its Mind?!
It never ceases to amaze me the ignorance of those in power in this country… There has been study after study demonstrating that speculators in futures markets actually help to stabilize prices by providing liquidity, yet the CFTC is still pursuing a course of action to curb the amount of futures contracts that can be held by a single firm on an individual commodity. Can someone please educate me: how can a specualtor affect long-term commodity prices when they cannot take delivery?! Sure, short-term prices might be overly inflated or deflated, but when it comes time to take delivery or roll the contract speculators who cannot take delivery pay huge costs (see my post on the Ultimate Short Squeeze a couple of years ago).