Jon wrote:
"John R. Carroll" wrote in
message ...
F. George McDuffee wrote:
As the investigations grind on and on and on, the facts are
begriming to float to the surface like so many dead fish. It now
appears (with every possible spin) that 49% of the traders/trades
in crude oil over the last few months indeed were speculators or
in the terminology of the report "non-commercial market
participants."

Told ya'.

People are speculating on oil selling short, too.
What effect do they have on the market?

Less.
When you short anything your largest gain is realized when whatever you
shorted goes to zero.
The sky is the limit in the other direction.
Short selling is a great hedge but a poor strategy otherwise.

The article George quoted from glosses over the big problem, which is the
source of the new money.
Futures contracts are gambles in the truest sense of the word unless you
have a genuine interest in the underlying commodity.
Banks and other mortgage lenders were prevented by law from making such bets
until recently and for good reason.

How would you feel if the article had substituted the name of the bank where
your demand deposit accounts are or maybe your mortgage is for the term
"non-commercial market participants"?

That is what they meant and it's the truth. It's also the reason Banks used
to be Banks and Investment Banks weren't allowed to cross over. That's all
changed to the point that provate equity firms effectively control
Investment Banks that control or operate as Banks. We aren't at the begining
of the end at this point. We are about a year beyond the end of the
beginning and the middle could be real ugly.

--

John R. Carroll
www.machiningsolution.com