…….They are providing a service because they make it more convenient for people to obtain the goods they need and also make it easier for the farmers/producers to sell in large batches to a few buyers vs. having to sell onsie-twosie to every individual purchaser. That being said, some would argue that it’s better for everyone to simply buy at farmers’ markets, but most of us like the convenience of having a grocery store that is open more hours/days. Speculators don’t provide any similar benefits.[/quote]
I find this interesting, because, as I recall, this description is almost identical to the reason for the “corn exchanges” and similar markets that grew into the mercantile/stock exchanges.
There will always be speculation with respect to things that are limited – and no one is making any more land. Almost every new tract house is built on spec. Is this really what you are talking about?[/quote]
Creating a market infrastructure is different from speculation, though speculation is often better enabled because of this infrastructure. The exchanges are like grocery stores, and they charge a fee for service — providing buyers and sellers a centralized exchange, opening up the market to other buyers and sellers (genuine buyers/sellers as well as speculators).
That is different from speculation because speculators are not building and maintaining this infrastructure (though the fees they pay make the exchanges more profitable).
