From the Economist
posted on
Oct 19, 2011 10:28AM
We may not make much money, but we sure have a lot of fun!
Oct 19th 2011, 10:41 by A.E.S
This isn't likely to be the final word on the matter. Commissioners voted 3-2 in favour of the rule, but it has its critics. Michael Dunn, a CFTC commissioner, has said the caps are a "sideshow". Others have warned the new rules may be vulnerable to a legal attack, since the CFTC hasn't shown conclusively that excessive speculation contributes to rising commodity prices. The US Chamber of Commerce, a business group, has already defeated a rule by the Securities and Exchange Commission (SEC) that makes it easier for shareholders to nominate directors for corporate boards. A court ruled that the SEC hadn't adequately tested the economic consequences of the rule. Speculators are already saying the same thing about this one, and warn it may actually lead to higher commodity prices, because it will make it harder for firms to hedge. Some say they are planning to deliver those same arguments in court.