Commodity ETFs: Toxic, deadly, evil (Next crash dead ahead, bigger than dot-coms, subprimes)

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By Paul B. Farrell, MarketWatch


ARROYO GRANDE, Calif. (MarketWatch) -- The warning screams at you: "Do Not Buy Commodity ETFs!" Yes, this Bloomberg BusinessWeek cover reads like National Enquirer or a flashing neon sign on the Vegas Strip.

And just in case you didn't get the warning, B/W repeats it twice more, on the cover: "Do Not Buy Commodity ETFs ... Do Not Buy Commodity ETFs." Then, as if afraid you still won't get it, they scream even louder: Commodity ETFs are "America's worst investment."

Worst? Add toxic, deadly, evil. Commodity ETFs are rapidly becoming a malicious virus breeding chaos in the global markets pricing all commodities: food, farm lands, metals, oil, natural gas, livestock, water and other natural resources are the assets under commodity derivatives and their ETFs, pricing that's now controlled more by Wall Street speculators than the weather, adding wild swings in volatility and trillions in global derivative risks.

And once again the usual suspects, the Goldman Conspiracy of Wall Street Banksters, are in the lead.

Today, Wall Street is making a killing on commodity ETFs. And yet at the same time they are rapidly accelerating global market conditions that'll eventually kill the goose that laid their golden egg, those high-profit-generating commodity ETFs. But unfortunately this new ideology, Chaos Capitalism, is rapidly moving past economic pricing wars into military conflicts, a trend the Pentagon predicted years ago, an ever-increasing cycle of global wars over increasingly scarce nonrenewable commodities.

'Next financial time-bomb ... stuffed with derivatives'

In Bloomberg Markets' "ETFs Gone Wild," investors are warned that many ETFs are "stuffed with exotic derivatives," at risk of becoming "the next financial time bomb." In short, thanks to ETFs, Wall Street is already creating a dangerous new kind of global weapon of mass destruction -- a bomb primed to detonate like the 2000 dot-coms, the 2008 subprimes -- and detonation is dead ahead. ............(more)

The complete piece is at: http://www.marketwatch.com/story/commodity-etfs-toxic-deadly-evil-2010-08-03

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1. What are you going to do?

The Finansialists are not going to be regulated
Meaningfully.

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2. Of course not.....but we have the facade of a "landmark" regulation bill.

Such is life in a Kabuki Democracy.