We are a commune of inquiring, skeptical, politically centrist, capitalist, anglophile, traditionalist New England Yankee humans, humanoids, and animals with many interests beyond and above politics. Each of us has had a high-school education (or GED), but all had ADD so didn't pay attention very well, especially the dogs. Each one of us does "try my best to be just like I am," and none of us enjoys working for others, including for Maggie, from whom we receive neither a nickel nor a dime. Freedom from nags, cranks, government, do-gooders, control-freaks and idiots is all that we ask for.
The Hunts Brothers tried to do this. The Federal Reserved basically did a short dump on them by coordinating a release of actual silver onto the market, shorting the future contracts that they were holding on, and bankrupting them in the same time.
Physically holding the product, you do take a risk the price could go the other way. Should be "to bad for you."
But the real world doesn't work this way. See the thief who sued and won for damages for falling off the roof of the building he was breaking into.
Or members of a Coop who sued (but lost) for certain contracted months. Never Mind about the months they profited from. "Our claim is that the Coop benefitted from the lower price we freely agreed to, thereby making money for the group at our expense."
I really dislike that part of the human race.
I saw an item on this a day or so ago & I was prepared to believe the worst, as G-Sachs was involved; their integrity is so - compromised - and they seem to pay so little in consequences for their transgressions, I am prepared to believe they're capable of about anything.
Then a ran across this at "Just One Minute", which made me think again:
Not that I don't think G-Sachs isn't capable of weaselly manipulation, just that maybe there's less to this than immediately meets the eye.
And I am certainly sympathetic to the notion of NYT reporters not being as competent to report facts as their eminence might suggest. Goodness knows I've seen them mangle legal facts / issues when I think they're really trying to report it straight.
Perhaps too simple minded for Maggies' esoteric readership, but this worked for me: http://money.howstuffworks.com/oil-speculation-raise-gas-price.htm
Just to put the commodities in human perspective:
The Hunt Brothers are two of my favorite Americans. They managed to lose, fair and square [at least according to the rules], around 4 Billion actual dollars. That's not the same, for me, as Buffet or Gates losing billions as a result of declining stock prices or something.
I believe they were trying to corner the soybean market, too.
Anyway, in most cases, to actually 'lose' billions requires law breaking by someone.