Postmodern Capitalism

Feb 17, 2012 11:46

There's no real market anymore. There's only futures. The price of oil goes up these days despite weak demand and no disruptions in supply. We all pay more because traders 'speculate' that disruptions/increased demand might happen in the future, so they buy the commodity. It doesn't matter though if these things actually happen, all that matters is that enough people buy enough of the same commodity. This is what makes the value of the commodity go up (or down), not supply or demand. This creates fake demand and bubbles that pop. The investors then lose the fake wealth that they created on fake demand and get bailed out with more real money from us to maintain the make-believe markets that make us pay more in the first place!
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