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San Francisco Onion Futures Company

398 points · 179 comments · z-mach9

  1. joegibbs · · focus · HN ↗
    Why was the law against onion futures passed in the first place? Couldn’t the same scheme be done with garlic, or sweet potatoes, or turnips or something?
    1. gostsamo · · focus · HN ↗
      A guy cornered the market in the fifties, caused a scandal, they made a special exception.
      1. joegibbs · · focus · HN ↗
        But what I’m saying is, why did they only cover onions? I don’t think there’s anything stopping someone from cornering the market in other commodities just as easily
        1. weakened_malloc · · focus · HN ↗
          Because the size of the market was/is so small that you're actually able to corner it. Oil or Treasury futures are far too big that no single person could ever corner it.
          1. microtherion · · focus · HN ↗
            Though the Hunt brothers made a pretty good run at the Silver market in 1980.
            1. defrost · · focus · HN ↗
              China went all in on rare earth concentrate processing, taking the environmental hits that no one else wanted to touch.

              That paid off in a concentrated lock on the bulk of rare earth applications.

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