MrRodgers -> RE: BREAKING: Ron Paul to Announce Presidential Candidacy Friday Morning on ABC Good Morning America 7 (5/13/2011 7:24:06 AM)
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so does a loan. No, it doesn't. Farming is vulnerable to a host of weather and pest problems, several of which can cripple a year's crop. A futures contract allows the farmer a workable price, guaranteed, giving him a reason to take out that loan and plant. bullshit I know shit loads of farmers and they dont even know what futures are. you must be talking about corporate farms and that may as well be guvmint owned and operated farms First of all, futures contracts exist only as a means to speculate and trade commodities without needing more than a piece of paper...not the commodity itself. As what capitalism is...turning paper into money, it is a profit vehicle, nothing more. Yes, one can lose and lose big too if you time it wrong. Because there are billion$ thrown at speculation in commodities, it can and often does move prices. That price for those that are willing to be objective and learn, become the same thing they call it on oil...the benchmark price, i.e., the price at which all sales negotiation begins. The futures market then forces...yes forces producers to buy in order to hedge their capital for the insuing further speculation. Believe it or not kinkroids, depending on their timing, producers can lose money buying futures, but...they lose as little as possible. Anybody here actually tell me how producers can lose money investing in (buying) rising futures ?
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