In light of the recent rise in crude oil and other commodity prices and the influx of new investors into commodity futures markets, the Commodity Futures Trading Commission (CFTC) is announcing the formation of an interagency task force to evaluate developments in commodity markets. The CFTC is looking at changing commodity rules to force big funds to disgorge multi thousand contracts positions. We could be looking at a forced liquidation – similar to the silver liquidation that happened in the big metal run up and silver corner by the Hunt brothers. That episode resulted in huge losses for the Hunts – who were forced out at huge losses after they tried to corner the silver market.The entire world is up in arms about the energy and food shortages. It does not matter that the shortages are the real culprits. The fact is, pretty much all the nations are getting ready to force speculators out of these markets.The fact is that, in a world food crisis, this is going to force poor people to pay – tribute – to big investors to eat. The world governments are not going to allow that to happen if they can stop it.   more »

Gartmore head of global emerging markets Chris Palmer is net short Indian stocks and is concerned about government interference in private enterprise and a lack of financing for growing firms, he told Reuters. Palmer, who manages a range of portfolios including the $1 billion (513 million pounds) Gartmore Sicav Emerging Markets fund, said his long-only funds have been cutting back exposure to India, while his hedge funds are net short. Shorting means betting on a lower price for a security in the future. "Public policy in India has deteriorated substantially in the last two years," he told the Reuters Investment Outlook Summit in London. "Policy towards pricing, how private enterprise can price their services and goods, the level of government interference in the general price levels is accelerating," he said.   more »