Quote:
Originally Posted by Otto
OTOH, the speculators may get their asses handed to them if prices head south as the speculative bubble bursts. Then, they'll be trampling all over each other heading for the exits, so as to avoid being stuck with inventory they cannot unload. Markets go down a lot faster than they go up, as fear motivates better than greed.
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I still question the speculation, you can only speculate prices up for so far and for so long before someone kicks the legs out of your house of cards. Artificially high prices encourage suppliers to operate at full bore and consumers will eventually say no more and stop consuming (realistically a significant reduction). At some point the S=D equation will become out of whack and prices crash. IMO if prices survive the July-August vacation period there is no significant level of speculation involved.