Krugman notes that the corruption of futures markets by rampant insider trading compromises its key purpose: the reduction of risk by both buyers and sellers. His warning:
> This is bad for everyone who doesn’t have those connections. It’s bad for economic growth. And it undermines the moral basis of the economy and society as a whole. It’s the path of how a country slides into third-world status.
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> Either way, the effect of traders’ suspicion that they may be losers in a rigged game will be to make them reluctant to play at all — reluctant either to buy or to sell oil futures. And this will mean losing the risk-reducing benefits of a properly functioning futures market.
Counterpoint: traders are clearly suckers inclined to believe Trump is magic.
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Krugman notes that the corruption of futures markets by rampant insider trading compromises its key purpose: the reduction of risk by both buyers and sellers. His warning:
> This is bad for everyone who doesn’t have those connections. It’s bad for economic growth. And it undermines the moral basis of the economy and society as a whole. It’s the path of how a country slides into third-world status.
> Either way, the effect of traders’ suspicion that they may be losers in a rigged game will be to make them reluctant to play at all — reluctant either to buy or to sell oil futures. And this will mean losing the risk-reducing benefits of a properly functioning futures market.
Counterpoint: traders are clearly suckers inclined to believe Trump is magic.