Tuesday, January 31, 2012

Worst Corporate Award

I read this hilarious story today.  What isn't hilarious is the idea of bankers speculating with global food prices.  Take a look at this chart:

There is clearly a spike in food prices before the financial crisis, and another peak in 2010. Financial institutions (in the form of index funds) control about 25-35% of agricultural futures contracts:

We estimate that Barclays makes up to £340 million a year from betting, or speculating, on food prices. In the last five years, the amount of financial speculation on food has nearly doubled, from $65 billion to $126 billion.

 I guess you can bet on anything, even if it means taking food from the poor...

No comments:

Post a Comment