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> Unless you want to restrict markets to being only between suppliers and consumers That is what I would like to do, yes.
by BeFlatXIII 4y ago
> Unless you want to restrict markets to being only between suppliers and consumers
That is what I would like to do, yes.
- lotsofpulp 4y agoThat is how they were in the beginning. I recommend reading about the development of markets and futures trading to see what benefits they provide, as they are a component of any developed economy around the world.
- kortilla 4y agoI challenge you to write out what scenarios you think reducing market participants will solve. Historically it has 100% so far been highly illiquid markets with huge price spreads, which is terrible for both sellers and buyers. What you’re suggesting means a farmer selling wheat futures for delivery a year from now needs to be at the market at the same time a bread maker is looking to buy wheat a year from now. That basically doesn’t happen because the bread maker doesn’t need that level of forward looking price stability.
- parmenidean 4y agoRead up on the onion futures markets; due to a (rather fascinating) historical decision, they are one of the few commodities without speculative futures. As a result, price volatility in the market is massive, with far worse swings compared to the efficient markets where speculators operate.