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> This is why we have agricultural derivatives, ...and, indeed, many other financial derivative products. They have a terrible reputation but smoothing the cur
by gusfoo 14y ago
> This is why we have agricultural derivatives,
...and, indeed, many other financial derivative products. They have a terrible reputation but smoothing the curve between boom and bust in commodities is a very useful service.
- jellicle 14y agoAnd back when investing in such derivatives was limited to, e.g. buyers of such commodities, it worked fine. Now the average commodity "investor" just sees a differently-labeled slot machine and cares not at all about the underlying commodity, and never intends to accept delivery of same. For speculators, increasing (not decreasing) the boom-bust cycle is beneficial.
- Retric 14y agoFor farmers a boom bust cycle is fine as long as they cam match the product being sold. If they sell a futures when planting they get out of the market and stop carring about the eventual price.