jump to navigation

speculation: more con September 25, 2010

Posted by Bradley in : markets , trackback

The UN’s Special Rapporteur on the Right to Food, Olivier de Schutter, writes:

a significant portion of the increases in price and volatility of essential food commodities can only be explained by the emergence of a speculative bubble.
In particular, there is a reason to believe that a significant role was played by the entry into markets for derivatives based on food commodities of large, powerful institutional investors such as hedge funds, pension funds and investment banks, all of
which are generally unconcerned with agricultural market fundamentals. Such entry was made possible because of deregulation in important commodity derivatives markets beginning in 2000.

Comments»

no comments yet - be the first?