Commodities Speculation - Trading Run Amok

Recently I wrote a blog about how trading stocks for the sake of doing so damaged the economy because it was a non-productive way to make money. The same is true for commodities trading - only in this case, the consequences for the general population are worse - far worse….

A couple of weeks ago I was in running my dogs in the park and an acquaintance of mine came in with her two dogs.  I mentioned the stock market and she started asking about commodities prices.  For about half a second I wondered why this was a concern.   Then it hit me - she is the owner of a coffee shop which is also a roasting establishment.   Commodities prices have a massive impact on her life and profit margins - and coffee has gone crazy over the past year.  Admittedly some of this was due to weather issues - but much of it was sheer speculation.
The same holds true from the oil speculation that was one extra nail in our fiscal coffin in 2008.   High oil prices drove the cost of living sky-high in the middle of the recession in 2008 and helped lead the country off a financial cliff.  But the impact goes even further than that.  People die from commodities speculation. When food products are involved - such as wheat death and malnourishment result.  In poor countries, such speculation driving prices sky-high can mean the difference of eating or not.  Indeed, the high price of wheat was a big factor in rebellion in Tunisia and in Egypt.



© 2011 - RMGHicks - http://www.thebodypoliticusa.com - All rights reserved.

Jim Cramer of Mad Money Fame & the #occupy Wall Street Movement

Sometimes you find a supportive voice where you don't expect to find one.  I have to admit that I have a soft spot for Jim Cramer….Beyond the fact that he autographed a book for my Dad shortly before his death….he does try to make Wall Street explicable to those of us who have not spent quality time on the floor of the stock exchange.   He had words of wisdom about the #occupy Wall Street movement and highlighted the concerns of many about "direction."  Cramer has a unique opportunity to shape that focus the movement…by reaching out to them He certainly had enough to say about justice not being done…

Bravo Mr. Cramer!

Shattering the Illusion of Control...

Perhaps one of the biggest elephants in the room from  #occupy wall street movement is that many of the protesters have done a 180-degree turn on that "self-determination" thing.

Real estate agents are independent contractors and we are often coach and cajoled into believing that "you make it happen and YOU are in 100% control of your destiny."  That works until it doesn't.  You can be as aggressive as you want - but if consumer demand has completely dried up very few will survive. Like selling coals in Newcastle - selling houses in the biggest recession since the Great Depression is about as easy as selling ice to Eskimos.

The Occupy Wall Street Movement - free speech or a free-for-all?

Much of the criticism levied at the #Occupy Wall Street movement has pinpointed the fact that in general, the protesters lack "direction."   These people are not fools or bums and those who would dismiss them lightly do so at their peril.  They are savvy enough to know something is wrong. Very wrong.  They have the right target in their sites.  They are disgusted with Wall Street and the "too big to fail" banks that have yet to be held to account for the misery they have inflicted on millions of Americans.  They understand that the banks were bailed out.  They understand that instead of lending the largesse from the taxpayers - the banks took the money and locked it up.  They get that the super-rich, the big banks, and multinational corporations are sitting on the trillions of $$ that are desperately needed to kick start our economy.  They understand that until that money circulates - the misery on Main Street will only increase.

But specific demands are harder to get to…

So here are some demands that would give the movement "direction".  They are particularly relevant to an #Occupy Wall Street movement in that it targets Wall Street and the big banks.

Broken things or broken government?

People keep talking about things that are broken.  I'm not talking about a cup or a glass or even Grandma's antique china.  It usually goes something like..."the_______industry is broken!" or "the _____system is broken!"  or the ______business.  Which begs the question: how can so many industries, businesses, and systems all be broken at the same time?

Personally, I have had two careers and it seems as though academia is broken and the real estate industry is broken beyond repair. My father had cancer and getting him treated because he was in an HMO was a nightmare…so the insurance industry is broken.  The big banks won't discuss loan modifications with clients - so the banking industry is broken.

When there are this many "broken things"  shattered on the ground at the same time - something is wrong systemically.  It is rooted deep within our government and the body politic.  This is what happens when a government ceases to be functional.  When the government is broken, it means that those who would exploit and steal, those who would earn their money on the backs of others are in firm control.  In our case, the capitalistic beast has been let loose and is eating its prey.  Unfortunately, we are the prey and until the beast is contained - we will continue to look at our institutions and business as so much shattered glass.

The Wall Street protests reveal that the public is now aware of the fact that they are prey.  They see who the enemy is and are finally standing strong.  The response by the police only affirms how badly dysfunctional things are.  They are arresting the protesters while leaving the real criminals free to continue the carnage. Pssst...I have a hint for you....the REAL criminals have suits and carry briefcases...


© RMGHicks - http://www.therobberbaroneconomy.com