Fresh Air had a great interview with Antonia Juhasz about commodity trading, and the impact of the Commodity Futures Modernization Act (yet another wonderful legacy of Phil Gramm). Juhasz’s argument is that the CFMA created, in essence, unregulated shadow markets for the trading of commodities (like oil), which has enabled oil companies to, among other things, withhold supply. It also opened the door for speculative trading.
The interview is well worth listening to, but that’s not the only reason I mention it…
I thought the timing was interesting after the question in last night’s debate about whether the candidates believe that health insurance should be treated as a commodity.
Listen to the interview and then think about the implications of that question.