[lbo-talk] Once again, food prices

[Sean Andrews]

I'm with Carrol here: I assume you're right, but I don't understand,
technically, how this works.  Isn't every position countered by some other
position?  Is there a succinct source that would help me understand how it
is possible for speculators to have an adverse relation here?  My hypothesis
is that they do (and I think there was a congressional testimony by a hedge
fund operator a few years back that made headlines by saying as much) but it
seems counter intuitive when I try to explain it.

s

On Wed, Feb 9, 2011 at 09:37, Carrol Cox <cbcox at ilstu.edu> wrote:


> Doug Henwood: In more normal trading, there'd be speculative interests on
> both sides, but in this case, as in the 2006-7 runup, all the money was
> betting on higher prices.
>
> A question. Doesn't every bet involve two persons: a buyer and a seller?
> I'm
> assuming you are correct. I just don't understand how this was done.
>
> Carrol
>
>
>
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