Get Your Fresh Intelligence Daily

SUBMIT

High Food Prices One More Thing We Can Blame On Big Investors

Oct. 27 2008, Published 7:07 a.m. ET

Link to FacebookShare to TwitterShare to Email

SWEET IOWA GOLD Corn America's crappy housing market, weak dollar, and troubled finance sector have forced institutional investors to look elsewhere for places from which they can draw their rapacious profits. What's hot for spring? Commodities like food and fuel. And that's a big reason for rising prices of those two vital categories: Speculators are dumping their money into the markets and creating a bizarre feedback loop in which speculator demand increases as prices rise. Or so says Michael W. Masters a hedge fund manager who testified before the Senate Homeland Security and Government Affairs Committee yesterday.

Article continues below advertisement

Of course, not everyone believes this to be true:

Advertisement

© Copyright 2021 Radar Media Group LLC. Radar and RadarOnline are registered trademarks. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.