Awhile back I asked the question whether speculation in the commodity markets is immoral. Since then I have kept tabs on the commodity markets and am convinced more than ever that the commodity market have indeed become immortal.
Oil and food prices are rising on the mere hint of trouble (real or imagined) in those markets and there are hyped reports daily of further rises further fueling the rise. Just a few years ago, a threat of a hurricane or inclement weather would not of caused a ripple in oil and fuel prices. Now they cause wild swings to the upside of the market. The only persons this wild speculation benefits is the speculators. Everyone else loses.
One bright note, I expect that, like the housing market, the commodity markets may be in for a crash.
2 responses so far ↓
1 Carol Ann // May 6, 2008 at 9:13 pm
I agree with you — between the speculators and the chicken-little-sky-is-falling crowd (self-fulfilling prophecies), the rest of us barely stand a chance. It may be small comfort, but the worst of the speculators, at the end of their earthly life, will have to answer to God for all the people they added to the ranks of the poverty-stricken. Getting wealthy from honest effort and hard work is one thing; getting wealthy on the broken backs of the poor is altogether another thing.
2 Pelianito // May 7, 2008 at 11:06 am
You wrote: “One bright note, I expect that, like the housing market, the commodity markets may be in for a crash.”
I have no doubt that the commodity markets will crash, but you can bet that the speculators will not go down alone. I wouldn’t say that this is a “bright spot”, though it may satisfy some sense of justice. I’m afraid we’re all in for a bumpy ride, with the sin of greed blindfolded in the driver’s seat.
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