Forum Post: Replace Commodity Exchange
Posted 12 years ago on Nov. 30, 2011, 9:06 a.m. EST by c2t
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This content is user submitted and not an official statement
With the internet it should be possible to put producers together with processors and distributors. The exchange's are outdated and the cause of all our problems with skabs making money without working.
Commodity futures trading was invented for hedging between buyers and end users. If you replace the exchange the traders will just end up there. is the system abused ? yes . Do banks lend money for trading when they could be lending it to small business --Yes. Should there be position limits so folks like Goldman can't corner markets and run up the prices for the middle class gambling with money they borrowed from us? yes. But I don't think closing the exchanges and opening new ones will happen or that it would change a thing if it did.
This is already done on sites like Alibaba.com. It is now easier than ever for global sourcing to be done via the Internet, but there are still plenty of ways to scam people over the web. That's why personal contacts will always be more important to establish trust and get things done. The world is still interconnected people, no matter what tools you use to connect them.
http://www.youtube.com/watch?v=4Z9WVZddH9w