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What's the problem? These are futures, not options, so the dynamic is different and you MUST take delivery at the price you bid for. If anything this is a fan
by dnautics 6y ago
What's the problem? These are futures, not options, so the dynamic is different and you MUST take delivery at the price you bid for. If anything this is a fantastic step in the right direction of starting to acknowledge that the cost of consumption should be borne by the consumers (and not by the politically less privileged).
- dheera 6y agoExcept this will encourage people to take delivery and resell it at a markup, and the victims of this scheme will be the lower income class. Water should be free upto basic living necessities, and the government should be responsible for maintaining that.
- tempsy 6y agoit’s all financially settled. there’s no actual physical delivery of water with these contracts.
- Dylan16807 6y agoWater's cheap and storage isn't. I would expect resale to only significantly affect the price of extreme bulk use. Residential use isn't that big and I expect the vast majority of the price to stay in distribution and filtering.
- deleted 6y ago[deleted]
- dnautics 6y ago> Water should be free upto basic living necessities. If you mean to an end user, that's your opinion. I think we should aspire to that, but water is most definitely not "free" in general, and treating it as such is very dangerous. Even if government is responsible for providing water to the people, there is a cost (to the government for obtaining that water), and that cost needs to be accounted for somewhere. Perhaps you can provide a better price discovery mechanism that efficiently matches the price to its cost, that is robust to environmental swings and minimizes waste. Please let us know.