Bureaucrats Can Ruin Jobs

We’re in a serious recession, so this is obviously a good time for bureaucrats in Washington, who enjoy cush jobs, to come up with questions about financial markets concerning opractices that have been legally and ethically practiced for many decades.

Such as: Are some traders arbitrarily setting interest rates or bond prices?

The sound of it connotes mischief and illegality to a bureaucrat or politician in power, one who has no idea of financial markets. But the fact is, many prices of such commodities, including day-opening gold prices, are established by someone or a group throwing out an opening price. A liquid market very quickly picks up on it.

In many ways, it’s comparable to a racetrack odds-setter or handicapper, who creates the morning line; betters take over from there.(See the Earl J Weinreb NewsHole® comments