How Over-Regulating Goldman Sachs Will Lead to Higher Oil and Commodity Prices

I don't really understand all this deeply but have to appreciate the author's view regarding trust in free market. - MBC

http://www.moneymorning.com/2009/08/21/commodities-regulation-controversy/

"earning hefty profits on its commodities trading for nearly 18 years, heavyweight trader Goldman Sachs Group Inc. (NYSE: GS) now finds itself on the hot seat, defending this crucial source of revenue. And while that may not be good for Goldman, it’s also bad for investors..."

Complicated story of Goldman's big move into commodities market in 1991. Author touches on Goldman's 'special' relationships but makes a credible argument, the free market should be allowed to ultimately rule. - MBC

"...If regulations with real “teeth” – in this case, position limits on energy futures – are actually put in place... While the final result is difficult – if not impossible – to picture, here’s my best guess: The financially lucrative, economically prestigious and strategically important commodities-trading business won’t fold up and disappear – it will just move to another country, where it’s better treated, and even nurtured.

Perhaps it will end up in Asia, as has been the case with so many other important businesses during the past couple of decades. And that, once again, will end up costing America jobs – these jobs high-paying and prestigious – at the worst possible juncture..."