Thursday, August 4, 2022

Trading

"Illustration" courtesy of:  https://www.craiyon.com "wall street"

What would we do without "Wall Street firms" who "trade" in commodities futures like pork bellies, soybeans, or sorghum?  They strive to keep prices stable or ensure those "producing" receive a "fair price" for their hard work.

We can always be less or more sarcastic.

Here are 2 or 3 "concerns" with trading on what others produce but ultimately don't set the price of:
  1. Those "trading" seek to profit for themselves.
  2. Those "trading" (being non-rational "creatures") don't always behave logically or rationally.
    • So do the "computer programs" they use.
  3. To the benefit of few or detriment of many, the power of resonance can move markets faster or further than desired or expected.
There's a slim possibility that commodities "trading" is backward.

What's the correct fix to apply?

Leave trading to "virtual" things only.

We can always pretend that the "imaginary" or "made up" - having no more value than an "opinion" - are relatively safe to painfully crash or wildly inflate.

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