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Modern financial markets are extremely complicated. Not because all parts of the subject are complicated, but more of a result of a layer-upon-layer-upon-layer

Modern financial markets are extremely complicated. Not because all parts of the subject are complicated, but more of a result of a layer-upon-layer-upon-layer effect mixed with jargon. Anyway, regarding this contract. What happens if a bunch of random people bet on water scarcity? Well, if there is no water scarcity they will simply lose all their money. If there is water scarcity, however, this will be a clear signal of trouble ahead several weeks (or even months) before the scarcity becomes a real problem for real people. Yes, these greedy speculators will earn a lot of money (from people hedging and from other speculators); but it will not be because of losses of ordinary people using water on a day-to-day basis. Those people, if water scarcity sets in, will have to ask their supplier (the state I suppose? or are there private companies in CA?) why this is happening and solve the problem.

jacobwilliamroy 6y ago
You offer no guarantees. I'm sick of gambling and I don't trust you. I don't care about gambling. I just want to conserve water and distribute it efficiently. That's what I care about. I don't need to be tied up in the stock market in order to do that. Just shut your dumb mouth and go read about what Bechtel did to Bolivia. That's what happens when you start screwing around with water and treating it like it's some stupid useless commodity like onions. You know nothing about the real world clearly. Real life rarely lines up with these abstract economic simulations you read in your textbooks. You're like a Christian, conflating scripture with facts. Put down your finance textbook and maybe take a look out in the real world. And stop gaslighting everyone. You have no idea how much that pisses me off. If I could reach through this screen, grab your shoulders and shake you I would.
- marshray 6y ago
  In the real world, farmers and consumers have been using standardized forward contracts to stabilize prices for eggs, butter, wheat, and corn since 1864.

jacobwilliamroy 6y ago

You offer no guarantees. I'm sick of gambling and I don't trust you. I don't care about gambling. I just want to conserve water and distribute it efficiently. That's what I care about. I don't need to be tied up in the stock market in order to do that. Just shut your dumb mouth and go read about what Bechtel did to Bolivia. That's what happens when you start screwing around with water and treating it like it's some stupid useless commodity like onions. You know nothing about the real world clearly. Real life rarely lines up with these abstract economic simulations you read in your textbooks. You're like a Christian, conflating scripture with facts. Put down your finance textbook and maybe take a look out in the real world. And stop gaslighting everyone. You have no idea how much that pisses me off. If I could reach through this screen, grab your shoulders and shake you I would.

marshray 6y ago
In the real world, farmers and consumers have been using standardized forward contracts to stabilize prices for eggs, butter, wheat, and corn since 1864.