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If the commodities market can't set prices through discovery, then the government has to by fiat. Neither are great, but one is definitely preferred.

• dd36 4y ago
  When speculators were allowed into the oil markets rather than actual buyers, the price jumped to like $120 barrel in like 2007. They had to stop it because hedge funds could just drive the price up indefinitely. See Bitcoin.
  • akira2501 4y ago
    Speculation didn't suddenly exist in 2007. I do recall several regulations being changed at that time which _relaxed rules_ around the market. Is it possible that these regulations had more to do with the outcome than mere "speculation" in and of itself?
    • dd36 4y ago
      https://thinkprogress.org/leaked-documents-reveal-major-speculators-behind-2008-oil-price-shock-hedge-funds-koch-big-banks-oil-54ff4aeec90d/ https://thinkprogress.org/leaked-documents-reveal-major-spec...