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If Allan Greenspan Were an Ayn Rand Character

27 posts in this topic

There are too many faux players in these markets; state agencies - like CALPERS - big "charitable" foundations, big university endowments, union pension plans and more.

Except for the state agencies these are all private investors with a fortfolio to manage professionally. Why should they be prohibited from investing in futures?

You touch on the Catch 22 in the Objectivist outlook. I wouldn't necessarily outlaw their participation. But not only does their participation lack any basis in the underlying economic activity, but their power - much of it unearned, maybe most of it unearned - facilitates distortion of the market and undermines the value and purpose of the market. The managers of these powerhouses have no stake, no interest and no care for the players who "legitimately" need the futures market and, indeed, in the case of endowments and foundations, are often actively hostile to the values and interests of people who produce...

Why do professional fund managers have no legitimate interest in the futures market? They have to understand that market and act accordingly or they will lose their shirts, regardless of what organization they represent and which hired them. What is the catch-22? Would you want to ban people from the market that you don't think "care for the players" who you think "legitimately need the market"? Does the corner grocer "legitimately need" Walmart in his market?

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