Al Loria wrote:
Volatility in the food markets has also trashed what might have been a great opportunity for global cooperation.
Al Loria wrote:
Emerson, always dependable on these complex topics.
John Polk wrote:
Hey. If you have the wrong kind of apples for pie, you can always make cider!
Emerson White wrote:
The Goldman-Sachs article has one fatal flaw, well two really, no make that three.
First damning flaw Nations grain harvests went up, nations grain reserves went down, if Goldman were sitting on a bunch of grain gran reserves would go up, because they wouldn't be selling it.
Second damning flaw (related to the first) these commodities markets deal in futures, you don't have to sell anything the investment matures, then you deliver your commodity at a set price, the sell is automatic, so you don't need to have a sell built into your system.
Third damning flaw, If there were a buyer who was just buying grain to sit on it and driving up the costs either their costs would rise way up too, as sellers realized that they could squeeze more money out of them (if all you do is buy as much as you can you have zero bargaining power and the contents of G-S's portfolio are public information), alternatively there would be a killing to be made by selling not to them but around them.
Long and short of it, that author had no business writing about an industry he doesn't understand, his journalism background was apparently not enough for him to push to understand the system he was writing about.
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