As you have probably read the effort to impose position limits on the markets was struck down by a court in Washington DC.
I continue to suspect that meaningful market reform in the near term is a fantasy, given the realities of the credibility trap and corruption that maintains a hold on the financial and political systems in the US and the UK.
There will be some watershed event first, if there is to be any serious reform. What that might be, I do not know. But I am certain that it is coming, and change is coming with it.
The thought that these manipulated speculative markets in the US are effectively setting the world prices for critical commodities like food and energy is almost incomprehensible, especially if you understand what is really going on. It makes the LIBOR scandal seem like an uncontrolled burp at a Sunday school picnic, and LIBOR was a conspiracy of the first order.
The abusive rigging of LIBOR was known and tolerated by the regulators and the governments of the US and the UK, and was therefore an outrageous breach of trust that exemplifies the corrosive power of the credibility trap on the integrity of the entire system. And as I said at the time, LIBOR is the tip of the iceberg.
