We did stop speculation in onions

Reader comment on: Sanders on Speculators

Submitted by Lyle (United States), May 31, 2011 00:32

Once upon a time we had an onion futures market. In the 1950s the onion farmers decided they did not like it and outlawed the market. It turns out the onion market got cornered in 1955 and was the most active contract on the Chicago Merch. Without it the Merch almost went belly up. Interestingly it was a republican who introduced the bill Gerald Ford. It is not clear if the ban has increased or decreased volatility.

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