Much has changed in the futures world since Commodities magazine launched in 1972. Trading is now almost entirely electronic. The exchanges have morphed into publicly-listed companies.
Since you can't eat [gold] when hungry, or wear it when cold, or cuddle under it in the rain, what "protection" does it provide? Because it does not pay interest or dividends, why should one prefer it over investments that do?
This tapering means that bond yields are almost certain to rise, but only for future issuances. Existing bonds must fall in face value in order to compete.
Is Bitcoin a "futures contract?" Maybe. A futures contract is not defined in the CEA specifically, but it has been defined in the courts as a commitment to deliver or receive an asset - including U.S. dollars - in the future at a pre-agreed price.
Within less than a month, Gary Gensler will depart as Chairman of the Commodity Futures Trading Commission. He will be feted before that, and for good reason.
It hardly makes sense for the CFTC to pursue an appeal from a federal district court decision invalidating an earlier rule on speculative position limits when it is on the cusp of enacting new rules on the subject that (hopefully) will pass muster in the courts.
No wonder we have a federal debt crisis. With math like what's in the JPMorgan settlement, I cannot wait for the next analysis "proving" that our $17 trillion deficit is actually a surplus.
As we approach two potential national crises — a government shut-down and a default on federal debt — fertile minds will shift toward whether there is a financial tool to alleviate those risks. Futures contracts and options have long served as mitigators of risk. Why not here?
