Thread

1. joegibbs · 1789794613 · 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 · 1789796046 · focus · HN ↗

      A guy cornered the market in the fifties, caused a scandal, they made a special exception.

      1. joegibbs · 1789799957 · 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 · 1789801854 · 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. baobabKoodaa · 1789838621 · focus · HN ↗

               There are many other small markets as well, and yet, this law is not called the "Don't Corner Small Markets Act".

               1. chadgpt6 · 1789841758 · focus · HN ↗

                  This came from the times when Congress wasn't deadlocked. If someone cornered a different small market they could make another law against that.

                  1. baobabKoodaa · 1789842893 · focus · HN ↗

                     The point is that it's silly that the law is specific to onions, and the explanation "it's because onion market was small enough to be cornered" is unsatisfactory because there are other small markets too

                     1. IAmBroom · 1790079241 · focus · HN ↗

                        The law actually addressed public outcry, not regulatory malfeasance in a broader sense.

                        And therefore, yes, it was a silly, political reaction.

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