Biotech Values

[Jonathan Robinson]

Some have argued that the Fed could have changed margin requirements making speculation much more expensive and thereby reducing demand./i

I think this would have the effect of driving business overseas, which the US cannot afford. I agree it would have a great impact. I've advocated, for example, restricting biying and seeling of oil contracts to those who actually produce and distribute oil as a way to avoid speculation-driven price gains. The flaw in that idea is it would simply shift the market elsewhere.



With derivatives market being where it is (listed options and private notes and derivatives markets), I am not sure this policy intrument even works any more. Meanwhile the issues are in the debt markets more so than here, and how do you regulate a private debt supplier? And its terms?