A Look at the three Bills that could Impact Commodities Markets

Independent Senator Joe Lieberman revealed the drafts of three Bills which could cut back on the investment choices of large players in the commodities markets.

In the first bill, it would not allow pension funds of private or public companies holding over $500 million in assets to invest in energy or agricultural commodities on U.S. futures, foreign or over-the-counter exchanges.

The second Bill would empower the Commodities Futures Trading Commission to limit the share financial investors could hold in the commodity market.

Finally, in what is being called speculatation in the market, the futures regulator could put limits on investments deemed not connected to hedging activities. That would cut back on investments from huge investment banks on commodities swaps.

What I don't like about this is it is really an excuse by politicians for their revealed inability to handle markets. It underscores the weakness and limitations of government, something politicians don't like the electorate to think about.

It's also an attempt to deflect, rather than accept blame for the poor decisions by government officials that have led to high energy and food prices; things like not drilling for oil on American land and coasts, and the terrible decision to subsidize corn-base ethanol, which has resulted in higher food prices across the world.