Thursday, February 24, 2011
What a crock of bologna
Gas prices are at around $3.30 here and climbing but from what I'm hearing demand is down and supplies are rising. That seems to contradict the laws of supply and demand. But oh I forgot about the speculators who just can't resist messing with the market to make a buck. And we've seen their handy work in everything from beef cattle to toilet paper over the years. The original function of the futures market was to provide protection to farmers in the event of a bad season but now it's a different story. What was once an insurance for farmers has now become a casino game of hot potato. Buy and hold a contract until the very last minute then dump it and make huge profits and don't worry if the price goes down because you can always buy a hedge against that happening and you don't even need to pay for that hedge up front. Pretty slick game if you know how to play it. Sorry but I have to many scruples for that casino.
Sorry if posting is light I'm working 8 hrs and doing a 4 hr recert. Plus I'm a bit out of shape so these 13 hour days are killing me. Got to factor in at least an hour for travel you know.