Ban the futures/options in oil market and oil will drop to $10

Quote from misterno:

Did you know that there are 11 paper demand for every 1 physical demand for oil?

Of course you did not.:cool:
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Misterno, that's a fascinating statistic. Can you please provide a reference? Thanks in advance ...
 
Quote from misterno:

Here is the proof

http://blogs.wsj.com/economics/2011...rn-no-speculators/?mod=WSJBlog&mod=marketbeat
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Sounds like the farmers (and onion consumers) are exposed to a huge amount of financial risk because of the lack of speculators. Onion prices moved up 300%, and then moved down 75%, in two years!? That's even more volatile/crazy than silver.

That'd be equivalent to crude moving up to $300 by 2012, and then dropping back down to $100 in 2013. This is a good thing in your eyes?

None of the other commodities with active futures markets have seen moves anywhere *close* to that.
 
Quote from heech:

Sounds like the farmers (and onion consumers) are exposed to a huge amount of financial risk because of the lack of speculators. Onion prices moved up 300%, and then moved down 75%, in two years!? That's even more volatile/crazy than silver.

That'd be equivalent to crude moving up to $300 by 2012, and then dropping back down to $100 in 2013. This is a good thing in your eyes?

None of the other commodities with active futures markets have seen moves anywhere *close* to that.
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Illiquidity and volatility love each other.
 
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