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Thomas Palley: Iron Grip

Posted on July 03, 2008

I don't know much about the specifics ofthis market, but Thomas Palley says it is far from competitive, and a recent Bush administration decision will reduce competition even further. [There is one point where I'd disagree, though it's not about the market structure point, it's the claim that rampant speculative trading is responsible for the run-up in commodity prices generally. I think fundamentals are the main driving force. A more subtle point is that if, as Thomas claims, market structure is responsible for the price run-up, then the iron ore market doesn't have speculation yet it's pr...

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economic , policy , regulatory , trading