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Greece's Papandreou wants to curb speculation.

By Chidem Kurdas Guest blogger / March 10, 2010 -- The word “speculator” sounds derogatory, but it has a neutral, technical meaning. In commodity futures exchanges – the oldest and best established derivatives markets – a speculator is a trader who is neither a producer nor a user of the commodity in question. Commodity producers and consumers protect themselves against price fluctuations with futures contracts that specify delivery at a certain price and date.

By contrast, speculators trade the contracts as an activity in itself. They typically do not deliver or take delivery of the physical commodity. These specialized middlemen mediate between future buyers and sellers, playing an essential role in meeting the needs of both sides.

Futures markets work smoothly and effectively because there is a large number of so-called “speculato

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Submitted Mar 12, 2010 By: granitestater

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honda0105 Champion Author Tallahassee Posts:15,252 Points:1,141,025 Joined:Nov 2008	Message Posted: Mar 12, 2010 9:54:06 PM Ignore honda0105 Report Abuse hmmm.. isn't it that Greece isi n the mudhole they're in because of specu-traitors who counted on Greece to default after good ol' Hellas deceived everyone about the amount they borrowed. Didn't play quite honest there either, eh?
FuelBarge Champion Author Long Island Posts:6,796 Points:1,608,315 Joined:Aug 2005	Message Posted: Mar 12, 2010 10:13:23 AM Ignore FuelBarge Report Abuse To some extent, I guess I am a speculator with my 401K investments. I buy and sell stocks but that produces nothing except income for my broker (and myself when I am lucky).
MUSTANGSRUS Champion Author Ontario Posts:7,373 Points:1,506,045 Joined:Sep 2006	Message Posted: Mar 12, 2010 9:07:42 AM Ignore MUSTANGSRUS Report Abuse They do not play an important part in anything, except lining their own pockets. They neither produce nor consume, just drive up the prices.
mandoid Champion Author Colorado Springs Posts:5,037 Points:1,083,080 Joined:May 2008	Message Posted: Mar 12, 2010 8:33:24 AM Ignore mandoid Report Abuse another excellent point wegman
wegman Champion Author Twin Cities Posts:5,486 Points:1,626,560 Joined:Jun 2001	Message Posted: Mar 12, 2010 8:02:54 AM Ignore wegman Report Abuse Speculators are NOT the problem. Cartels are the problem. And if government action makes the cartels by limiting entrance, government is the problem. Over-regulation is more often than not a greater problem than under-regulation. Especially if you understand that life involves risk AND you have transparency.
TomT2Lee Champion Author Cincinnati Posts:3,807 Points:1,167,120 Joined:Sep 2005	Message Posted: Mar 12, 2010 7:35:10 AM Ignore TomT2Lee Report Abuse Too bad that speculators are not the real source of the problem. They point out the underlying imbalance and trying to squah their message does not eliminate the problem.
gasandgoAL Champion Author Alabama Posts:4,653 Points:1,121,795 Joined:Sep 2008	Message Posted: Mar 12, 2010 7:22:19 AM Ignore gasandgoAL Report Abuse they are not a friend of the common worker
jppezz Champion Author New Mexico Posts:6,225 Points:1,224,605 Joined:Jun 2008	Message Posted: Mar 12, 2010 7:22:11 AM Ignore jppezz Report Abuse I'm all for controlling speculators which leads to price manipulation.
turbosaab Champion Author Cleveland Posts:14,937 Points:1,945,015 Joined:Sep 2006	Message Posted: Mar 12, 2010 7:19:57 AM Ignore turbosaab Report Abuse The reason these 'commodity futures exchanges" don't work so well today is that information is so readily available and so easily manipulated.
bar1035 Champion Author Charlotte Posts:5,812 Points:831,675 Joined:Aug 2006	Message Posted: Mar 12, 2010 7:18:51 AM Ignore bar1035 Report Abuse "Then again, politicians need scapegoats."
RocketGeek Champion Author Grand Rapids Posts:8,231 Points:1,643,885 Joined:May 2005	Message Posted: Mar 12, 2010 7:18:11 AM Ignore RocketGeek Report Abuse Speculation was not allowed in the US until the early 90's I believe.
WonderfulMI Champion Author Michigan Posts:9,019 Points:1,319,805 Joined:Jun 2008	Message Posted: Mar 12, 2010 7:16:04 AM Ignore WonderfulMI Report Abuse Speculators are businessmen. The neither "sow nor reap", they just suck the blood out of the populace.
biza4u Champion Author New Haven Posts:6,172 Points:1,163,885 Joined:Jan 2007	Message Posted: Mar 12, 2010 7:15:58 AM Ignore biza4u Report Abuse I am with him
Valricoslash Champion Author Tampa Posts:4,285 Points:885,395 Joined:Nov 2008	Message Posted: Mar 12, 2010 7:14:38 AM Ignore Valricoslash Report Abuse speculation is only a small part of the equation. In reality, the oil companies and OPEC control the supply. Iff the price gets too low, they simpley turn down the spigot or cut back production at a refinery or two. Even the rumor of this wil cause the price to go up. OPEC does have some issues however. they can't turn it down too much because their countries depend on the revenue to operate. Politicians (rulers) are the same everywhere--they can't control their spending and need the cash to satisfy their need to spend.
Masercal Champion Author Michigan Posts:3,610 Points:780,740 Joined:Oct 2007	Message Posted: Mar 12, 2010 7:12:55 AM Ignore Masercal Report Abuse Speculators are a large part of what put the world economy in the dumper.
dave364 Champion Author Lansing Posts:3,198 Points:1,007,320 Joined:Nov 2007	Message Posted: Mar 12, 2010 7:12:36 AM Ignore dave364 Report Abuse what happen to them GREED
PurduePete86 Champion Author Indiana Posts:1,077 Points:891,615 Joined:Apr 2007	Message Posted: Mar 12, 2010 7:12:05 AM Ignore PurduePete86 Report Abuse Now they now what happen's to farmers. Used to be a day when this service was needed to connect suppliers with customers. Now it is just so much greed. companies need to take the initiative to contact suppliers directly and cut out the speculators.
Grismer Champion Author Kitchener-Waterloo Posts:6,258 Points:1,271,445 Joined:Apr 2008	Message Posted: Mar 12, 2010 7:10:27 AM Ignore Grismer Report Abuse A greedy profiteer by any other name is still a greedy profiteer.
madison8359 Champion Author Cleveland Posts:5,731 Points:1,126,665 Joined:Apr 2008	Message Posted: Mar 12, 2010 7:10:23 AM Ignore madison8359 Report Abuse So where is the virtue and where is the vice?
rocket_ron Champion Author Grand Rapids Posts:3,913 Points:1,527,945 Joined:Jul 2006	Message Posted: Mar 12, 2010 7:09:33 AM Ignore rocket_ron Report Abuse Hang them all!!!!!
Hangnail309 Champion Author Manitoba Posts:3,792 Points:1,230,555 Joined:Aug 2006	Message Posted: Mar 12, 2010 7:09:11 AM Ignore Hangnail309 Report Abuse We'll have to wait and see ...
CSharpGuy Champion Author Colorado Springs Posts:7,111 Points:1,432,185 Joined:Jan 2008	Message Posted: Mar 12, 2010 7:08:45 AM Ignore CSharpGuy Report Abuse We see now how united and loyal the European union is.
Eichhornchen Champion Author Detroit Posts:3,772 Points:747,390 Joined:Feb 2009	Message Posted: Mar 12, 2010 7:08:41 AM Ignore Eichhornchen Report Abuse yes, "speculator" sounds derogatory
Don1222 Champion Author Michigan Posts:7,802 Points:1,089,855 Joined:Jul 2008	Message Posted: Mar 12, 2010 7:07:09 AM Ignore Don1222 Report Abuse Support alternative fuels.
mlhog Veteran Author Minnesota Posts:329 Points:223,685 Joined:Oct 2009	Message Posted: Mar 12, 2010 7:00:40 AM Ignore mlhog Report Abuse What do yuo call 200 energy speculator at the botom of the lake? A ggod start.
adr47 Champion Author Saskatchewan Posts:4,840 Points:1,016,830 Joined:Nov 2008	Message Posted: Mar 12, 2010 7:00:22 AM Ignore adr47 Report Abuse Speculators are wrecking the world markets. There Motto "I get Mine, Screw You" Greed Rules
BigdaddyMA Sophomore Author Massachusetts Posts:163 Points:154,070 Joined:Oct 2008	Message Posted: Mar 12, 2010 6:58:57 AM Ignore BigdaddyMA Report Abuse the problem is GREED!!!! [Edited by: BigdaddyMA at 3/12/2010 6:59:27 AM EST]
weenerdog Champion Author Detroit Posts:7,334 Points:1,437,635 Joined:Jan 2008	Message Posted: Mar 12, 2010 6:58:38 AM Ignore weenerdog Report Abuse we'll see
TerryLee Champion Author Ohio Posts:13,855 Points:2,632,895 Joined:Mar 2004	Message Posted: Mar 12, 2010 6:58:21 AM Ignore TerryLee Report Abuse great idea,, hope it works
abuck Champion Author Pittsburgh Posts:6,247 Points:1,076,000 Joined:Jul 2008	Message Posted: Mar 12, 2010 6:57:20 AM Ignore abuck Report Abuse doubt it will work in the long run....they always find a way...
tankneverfull Champion Author Charlotte Posts:6,364 Points:1,299,015 Joined:Apr 2008	Message Posted: Mar 12, 2010 6:56:03 AM Ignore tankneverfull Report Abuse Doesn't everyone? What would 500 speculators at the bottom of the ocean be called? A good start! See, the joke even works for speculators.
BazooQC Champion Author Montreal Posts:7,325 Points:1,171,405 Joined:Oct 2008	Message Posted: Mar 12, 2010 6:55:35 AM Ignore BazooQC Report Abuse Funny Greece should come out with this comment. They have gone broke and have serious financial difficulties. Are they trying to blame speculators for their demise? I wonder if the Olympics expenses had anything to do with it.
MertieMan Champion Author Lexington Posts:12,404 Points:2,427,635 Joined:May 2005	Message Posted: Mar 12, 2010 6:54:02 AM Ignore MertieMan Report Abuse Another couple of words that come to mind when mentioning speculators are manipulators and trouble makers.
FieroGT Champion Author Twin Cities Posts:11,971 Points:2,096,640 Joined:Mar 2005	Message Posted: Mar 12, 2010 6:51:34 AM Ignore FieroGT Report Abuse The speculators only want to increase the oil prices. Lets get rid of them in the US too.
BoerneWatch Champion Author San Antonio Posts:12,920 Points:1,986,030 Joined:Oct 2005	Message Posted: Mar 12, 2010 6:50:51 AM Ignore BoerneWatch Report Abuse Welcome to the club Mr. Papandreou. We all want to curb speculation once we understand what it is and what it does.
TeachR06 Champion Author Raleigh Posts:3,535 Points:1,018,660 Joined:Sep 2006	Message Posted: Mar 12, 2010 6:50:17 AM Ignore TeachR06 Report Abuse Greece is in a big financial mess right now. Hope they can figure it out.
GasRedliningSuk Champion Author Michigan Posts:4,930 Points:954,415 Joined:Jul 2008	Message Posted: Mar 12, 2010 6:50:11 AM Ignore GasRedliningSuk Report Abuse The speculative energy market worked ok until huge sums of money from around the world poured into it. That was whaen oil spiked to $150. At that point it became apparent that there was so much money available to those traders, that the could move and sustain the msrket at will. It is defacto price manipulation at the consumers expense. Until congress mandates regulation that impedes these trades we are forced to pay prices that aren't true demand driven....
mark1962 Champion Author Albany Posts:3,385 Points:800,865 Joined:Sep 2009	Message Posted: Mar 12, 2010 6:49:18 AM Ignore mark1962 Report Abuse That is a great idea. I hope he finds a way to do it and we can learn from them.
olcowboy14 Champion Author Spokane Posts:7,175 Points:1,027,995 Joined:Jul 2007	Message Posted: Mar 12, 2010 6:49:10 AM Ignore olcowboy14 Report Abuse Speculators take a cut of the action, they don't do this for free. It adds to the cost of the items. It is risky business on their part, but I'm not so sure they are necessary.
fightbigoil71 Champion Author Milwaukee Posts:5,201 Points:1,086,860 Joined:Nov 2008	Message Posted: Mar 12, 2010 6:49:08 AM Ignore fightbigoil71 Report Abuse When will B.O. do the same?
RichardoB Champion Author Fayetteville Posts:5,620 Points:1,535,210 Joined:Jun 2007	Message Posted: Mar 12, 2010 6:43:27 AM Ignore RichardoB Report Abuse The author of this blog sounds like an apologist for speculators. He didn't make a case for them with me.
minnesotagirl Champion Author Milwaukee Posts:3,539 Points:775,485 Joined:Oct 2009	Message Posted: Mar 12, 2010 6:42:06 AM Ignore minnesotagirl Report Abuse I don't see the good of speculators. Speculation in the market led to the Great Depression.
nb52 Champion Author Grand Rapids Posts:5,414 Points:1,079,590 Joined:Nov 2008	Message Posted: Mar 12, 2010 6:41:27 AM Ignore nb52 Report Abuse This is a good explanation of speculating. Thank you.
ftsgt Champion Author Illinois Posts:10,720 Points:2,060,460 Joined:Dec 2004	Message Posted: Mar 12, 2010 6:39:28 AM Ignore ftsgt Report Abuse its just people investing in commodities as an alternative to the dollar, blame our govt for causing the dollar to tank instead of investors
03mdx Champion Author Syracuse Posts:3,488 Points:1,103,920 Joined:Sep 2008	Message Posted: Mar 12, 2010 6:38:41 AM Ignore 03mdx Report Abuse I would love speculators to be gone. I see nothing positive about what they do.
cheapertvs Champion Author Richmond Posts:7,840 Points:2,273,745 Joined:Jan 2004	Message Posted: Mar 12, 2010 6:37:17 AM Ignore cheapertvs Report Abuse If there was significant risk, speculators would not proliferate.
greywolves Champion Author Las Vegas Posts:6,437 Points:1,990,020 Joined:Dec 2004	Message Posted: Mar 12, 2010 6:35:39 AM Ignore greywolves Report Abuse the problem is, there is NOT a large body of speculators. the problem is, the few speculators can leverage $1 to control $16 in product the problem is, not market makers, it is market manipulators.
JCUBE Champion Author Michigan Posts:6,140 Points:1,453,800 Joined:Aug 2003	Message Posted: Mar 12, 2010 6:35:35 AM Ignore JCUBE Report Abuse Good luck, Obama said he was going to do this too, but he's too busy trying to jam health care down everybody's throats..moe spin from the White House here, I hope George is more sucessful there.
fordfan1 Champion Author Indiana Posts:6,726 Points:1,423,040 Joined:Jul 2007	Message Posted: Mar 12, 2010 6:34:33 AM Ignore fordfan1 Report Abuse Yes speculators need to be taken out of the equation.
ttwiw Champion Author Austin Posts:2,166 Points:1,297,910 Joined:Sep 2005	Message Posted: Mar 12, 2010 6:31:41 AM Ignore ttwiw Report Abuse IMO, speculators don't add any value to the market process.