[Marxism] Iron ore speculation

[bauerly at yorku.ca]

WSJ article on how Iron ore speculation is getting around the futures markets
limits. 
http://online.wsj.com/article/SB121754136960102219.html?mod=googlenews_wsj

"Even as Washington attempts to crack down on speculation in food, fuel and
metals, Wall Street is rolling out new ways to bring in money.

In May, Credit Suisse Group and Deutsche Bank AG began offering investments in
iron ore, a component of steel. About one billion tons of iron ore is mined a
year but isn't traded on a futures exchange. So it has been virtually
impossible for speculators to bet on price movements.

The investment banks were inundated with interest in iron-ore deals, which
function like futures contracts. In just two months, investors and hedgers took
on more than $500 million of notional exposure -- about 2.7 million metric tons
-- making this one of the biggest commodities markets to spring up almost
overnight.

The new markets show how hard it will be for legislators to curb commodities
speculation. Such trading is spreading to an array of other goods, from jet
fuel to chicken, that have been off-limits to investors because they aren't
traded on futures markets. They also are offered for commodities already bought
and sold on global exchanges, including crude oil, corn and coffee."

Brad