Tag Archives: mutual funds

Could the US cut retail investors out of commodities?

By Martin Fluck | Published: October 4, 2012
How a Wall Street elite contrived to turn the physical commodities market into a casino, and trigger damaging “spikes” in everything from oil to foodstuffs was beautifully reported on by Matt Taibi of Rolling Stone Magazine in 2008. But the food riots last year may be spurring politicians on both sides of the Atlantic to take action. Retail investors, the "long only" bettors who have for years forced prices upward, are part of the problem. So the Democrats are proposing rule changes that would force small investors in the US to divest themselves of the $50 billion they have tied up in commodity derivatives - if Obama wins the election.
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The Clear and Present Regulatory Danger Facing ETFs

By Martin Fluck | Published: August 30, 2010
We may not have long to wait for the collapse in the exchange-traded fund bubble. The ETF industry ran out of control long ago, but regulators can no longer ignore the retail money distorting market prices. Stuffed with exotic derivatives and super-concentrated bets on very risky markets, regulators are closing in. The steps they are taking will lead to a cascade of falling dominoes, as speculative ETFs are unwound.
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