Thursday, January 14, 2010
New futures regulations = pablum
Another lost opportunity for real financial reform.
CFTC's trading proposals might not be too tough
Futures market speculation has grown exponentially in the last few years, especially with the emergence of massive, "long-only" funds that have contributed to price increases in everything from gasoline to basic food staples like bread, cereal and sugar.
Congress had a chance to pass real reform and clamp down on this sort of destructive speculation, but what's about to come out of this looks to be nothing more than watered down pablum.
"Limits" on the size of futures positions will be imposed, but according to some market participants those limits will be set so high that they'll likely have little effect on actual current positions.
Large speculators and investment banks will continue to have free rein to drive up the price of food and fuel, making it harder for ordinary folks who are already suffering because of job loss.
Another example of Obama's timid leadership and how this is causing a massive flow of wealth to the top. Working people and families are getting destroyed while speculators are rewarded.