LMETrying to understand the issues in the copper markets is not easy. LME brings
on emergency conditions like a code red because the market is out of control.
Well isn't that the consequence when you run out of inventory due to excessive
demand and even hoarding? Looking backwards, this low inventory situation
must have been going on for a while to get to the crisis stage but it was held in
check up to this point. So my question is where is the transparency and proper
price discovery in all of this? The other thing that I don't understand is the LME
needing to come to the aid of those who are short contracts. If this is a free
trading market, why do they need to rescue short traders? Can anyone explain
this stuff in plain language. When I ignore my car maintenance, it doesn't go
away and the consequences are it's going to cost me more. Where are the consequences for the LME and traders who are caught short?