Sunday, September 30, 2012

Why who appoints the Judges matters

Robert Wilkins, a US district judge in Washington has struck down the new commodities trading rules that were supposed to limit how much of the futures market anyone trader could hold. You know, rig the market. 

This rule was passed by the Commodity Futures Trading Commission (CFTC) as a result of the Dodd-Frank Act passed while the Democrats briefly had control of Congress. It doesn't even begin to roll back the rules to the pre-Clinton era.  

The judge said on Friday the CFTC failed to heed instructions from Congress requiring it to determine that its rule was “necessary to diminish, eliminate or prevent” excessive speculation, and they could propose their rule again. Hog snot futures are trading higher on the news. 

We have a small problem with this right-wing corporate ruling, this was an Obama appointed judge. Washington is so awash in corporate money that it's impossible to predict how these judges will rule, except to take cynical view of it, which seems to always be right.

On the other hand maybe the judge was just doing his job, perhaps the corporate dominated CFTC deliberately put a poison pill into their own regulations. Regulations that have taken years to get out of the commission instead of the few months it was expected to take. This one was only two weeks from being implemented before being struck down.


Anonymous said...

Romney said he blamed Obama for high fuel and food prices. I wonder how he could fix this problem. HELP!