Senate Hearing Testimony

[atlpeanut]

One of my co-workers sent me this link to a testimony to the Senate by the manager of a hedge-fund. I found his testimony to be surprising. As I'm not in the economic/banking/investment industry, it was a little hard to follow at times. I'm not familiar with how everything is connected. I hope that the Senate takes his testimony seriously and

Comments

[scorpioatl]

Speculation in food commodities is downright evil-- it leads to "starvation for profit." The bigger question that this guy didn't answer is WHY hedge funds have piled into futures speculation. It all has to do with the tanking of the U$ Dollar. People lose money if they just hold the paper, so they have to invest it somewhere to keep up with inflation and the dollar's falling value. Too many people don't trust the future of the stock market, real estate has gone bust, and precious metals are extremely volatile. Commodity futures are a way to trade a declining dollar for a rising tangible good. Until CONgress fixes the weakening dollar, investors and hedge funds will continue to seek a safe place to park their money.