-steve grube ======================
James Devine wrote:
> At 04:07 PM 9/29/98 -0700, you wrote:
> >>farmer sometimes "hedges" by signing a contract with someone to pay a
> >>price for some of his product in the future. This "locks in" the price,
> >>that the farmer doesn't suffer in a big way from price declines.
> >I seem to remember reading in Wall Street about how this "fairy tale"
> >explanation (hardworking farmers transfer risk to speculators and
> >everyone lives happily ever after) is just that: only a tiny portion of
> >futures contracts have anything to do with producers or consumers of
> >actual commodities. Doug, if you could elaoborate?
> yeah, it's "only a tiny portion" -- but that's still _some_. It's easier to
> explain hedging with agricultural examples. Besides, it you listen to the
> radio in rural areas, they'll fill your ears with hog belly futures data.
> >>btw, how 'bout those Cubs?!? I expect to see pigs flying soon.
> >Bastards. I already had my tickets on order for the playoffs in
> >Candlestick. And, speaking as a born-and-bred New Englander, the pigs
> >will start flying when the Sox win the Series. The Cubs just suck -
> >they don't have the awesome tragic power of those afflicted with the
> >Curse of the Bambino...
> the White Sox?
> Jim Devine jdevine at popmail.lmu.edu &