I would like to know what where I can put my savings, because all they want to bankrupt!!!
(Reuters) - Direct government intervention may be needed to burst bubbles in commodity markets inflated by a new herd of financial investors, a U.N. study found.
Excessive speculation has added around 20 percent to international oil prices, sending false signals to policy makers, said the report published on Sunday.
"The changing role of commodity markets, which are turning into financial markets, has enormous repercussions for the economy," said one of the report's authors, Heiner Flassbeck, a director at the United Nations Conference on Trade and Development.
"We think you end up with wrong signals for overall macroeconomic policy."
Reforms suggested by the report - Price Formation in Financialised Commodity Markets - included improving transparency on commodity exchanges and over-the-counter physical markets, better inventory data and action through the use of government reserves.
"The possibility of allowing governments' direct intervention in the physical and financial markets needs to be considered," the study concluded.
"In financialised commodity markets, as in currency markets, intervention may even help market participants to better recognise the fundamentals."
Since around 2000, as commodities were perceived to have entered a super-cycle and the equities market bubble burst, oil and other raw materials have lured financial investors, as well as the producers and big consumers historically in these markets.
The report quoted data compiled by Barclays Capital that commodity-related assets under management reached a historic high in March 2011 of around $410 billion, almost double the pre-crisis level of 2007.
(Reuters) - Direct government intervention may be needed to burst bubbles in commodity markets inflated by a new herd of financial investors, a U.N. study found.
Excessive speculation has added around 20 percent to international oil prices, sending false signals to policy makers, said the report published on Sunday.
"The changing role of commodity markets, which are turning into financial markets, has enormous repercussions for the economy," said one of the report's authors, Heiner Flassbeck, a director at the United Nations Conference on Trade and Development.
"We think you end up with wrong signals for overall macroeconomic policy."
Reforms suggested by the report - Price Formation in Financialised Commodity Markets - included improving transparency on commodity exchanges and over-the-counter physical markets, better inventory data and action through the use of government reserves.
"The possibility of allowing governments' direct intervention in the physical and financial markets needs to be considered," the study concluded.
"In financialised commodity markets, as in currency markets, intervention may even help market participants to better recognise the fundamentals."
Since around 2000, as commodities were perceived to have entered a super-cycle and the equities market bubble burst, oil and other raw materials have lured financial investors, as well as the producers and big consumers historically in these markets.
The report quoted data compiled by Barclays Capital that commodity-related assets under management reached a historic high in March 2011 of around $410 billion, almost double the pre-crisis level of 2007.
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