|
|
Joined: Jun 2010
Posts: 9,433
Hall of Famer
|
OP
Hall of Famer
Joined: Jun 2010
Posts: 9,433 |
Water is joining gold, oil and other commodities traded on Wall Street, highlighting worries that the life-sustaining natural resource may become scarce across more of the world.
Farmers, hedge funds and municipalities alike will be able to hedge against -- or bet on -- potential water scarcity starting this week, when CME Group Inc. launches contracts linked to the $1.1 billion California spot water market. According to Chicago-based CME, the futures will help water users manage risk and better align supply and demand.
The contracts, a first of their kind in the U.S., were announced in September as heat and wildfires ravaged the U.S. West Coast. They are meant to serve both as a hedge for California’s biggest water consumers against skyrocketing prices and a scarcity gauge for investors worldwide.
“Climate change, droughts, population growth, and pollution are likely to make water scarcity issues and pricing a hot topic for years to come,” said RBC Capital Markets managing director and analyst Deane Dray. “We are definitely going to watch how this new water futures contract develops.” There's more at the link. I....have no words. Looks like Kevin Costner's Waterworld will never be our future at this rate.
|
|
|
|
|
Joined: Sep 2006
Posts: 34,532
Legend
|
|
Legend
Joined: Sep 2006
Posts: 34,532 |
|
|
|
|
|
Joined: Sep 2006
Posts: 39,554
Legend
|
|
Legend
Joined: Sep 2006
Posts: 39,554 |
Makes sense. If you can buy and sell it, you might as well buy stock in it.
We are lucky here in Chattanooga. most of the watch that falls on the west side if the Smokey's runs past my back window. Other places aren't as lucky.
California as an example has serious problems. First, they have a fairly short supply to begin with compounded by irresponsible urban demand. California's agricultural demand is huge. Take almonds as an example. I read somewhere that 1 almond requires over 1 gallon of water to be produced.
I don't have a problem with water being used to produce food items, but that can of almonds has maybe 150 gallons of water inside.
If everybody had like minds, we would never learn. GM Strong ![[Linked Image]](http://www.dawgtalkers.net/uploads/small-gator-chomp.gif)
|
|
|
|
|
Joined: Sep 2006
Posts: 34,532
Legend
|
|
Legend
Joined: Sep 2006
Posts: 34,532 |
How long until price and trading make water only for the elite? This is dumbassery at it's finest if you ask me. Next we will put a premium on breathable air... 
|
|
|
|
|
Joined: Sep 2006
Posts: 15,015
Legend
|
|
Legend
Joined: Sep 2006
Posts: 15,015 |
......This is dumbassery at it's finest if you ask me. Next we will put a premium on breathable air... Only if you want to breathe the clean filtered air.  The regular polluted stuff will still be free.
We don't have to agree with each other, to respect each others opinion.
|
|
|
|
|
Joined: Mar 2013
Posts: 15,927
Legend
|
|
Legend
Joined: Mar 2013
Posts: 15,927 |
Great, something conservatives can play in and muddy up now. Our water futures.
Should be interesting to see how much water is claimed by the US Vs Canada for good ole Lake Erie and the other Great Lakes.
Last edited by PerfectSpiral; 12/07/20 08:53 AM.
"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." Thomas Jefferson.
|
|
|
|
|
Joined: Sep 2006
Posts: 39,554
Legend
|
|
Legend
Joined: Sep 2006
Posts: 39,554 |
Great, something conservatives can play in and muddy up now. Our water futures.
Should be interesting to see how much water is claimed by the US Vs Canada for good ole Lake Erie and the other Great Lakes. It isn't a conservative/liberal issue. Great Lakes water has been a topic since the 50's. It really isn't a issue of the "have's" and "have not's". Water Rights law has been well established for over 100 years. Locally, Atlanta has serious water issues. If they could bottle up all the water flowing down the Chattahoochee, which runs through Atlanta down to the Gulf, they could use every ounce. They can't as that would impact the water rights claimed by both the states of Alabama and Florida. It's the same with the Great lakes or any other fresh water source. I am sure some company could divert some water bound for the Great Lakes, and send it to say Arizona or California, but it wouldn't be all that much. Every point down from the intake point, on both side of the border would work to make sure there was no real impact further down the water basin, which includes all of the St. Lawrence.
If everybody had like minds, we would never learn. GM Strong
|
|
|
|
|
Joined: Nov 2008
Posts: 13,472
Legend
|
Legend
Joined: Nov 2008
Posts: 13,472 |
Great, something conservatives can play in and muddy up now. Our water futures.
Should be interesting to see how much water is claimed by the US Vs Canada for good ole Lake Erie and the other Great Lakes. The article specifically said it was California that is setting this up. Further, CME is based in Chicago.
There is no level of sucking we haven't seen; in fact, I'm pretty sure we hold the patents on a few levels of sucking NOBODY had seen until the past few years.
-PrplPplEater
|
|
|
|
|
Joined: Sep 2006
Posts: 39,554
Legend
|
|
Legend
Joined: Sep 2006
Posts: 39,554 |
Great, something conservatives can play in and muddy up now. Our water futures.
Should be interesting to see how much water is claimed by the US Vs Canada for good ole Lake Erie and the other Great Lakes. The article specifically said it was California that is setting this up. Further, CME is based in Chicago. Hey, details, schmetails. You can't expect some to pay attention.
If everybody had like minds, we would never learn. GM Strong
|
|
|
|
|
Joined: Mar 2013
Posts: 15,927
Legend
|
|
Legend
Joined: Mar 2013
Posts: 15,927 |
Ok still a dumass idea. I still expect conservatives to muddy the waters with this. Pun intended.
"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." Thomas Jefferson.
|
|
|
|
|
Joined: Nov 2008
Posts: 15,533
Legend
|
|
Legend
Joined: Nov 2008
Posts: 15,533 |
Michael Burry, who was portrayed in the movie the Big Short and famously known for shorting the marketing during the housing collapse, has advocated invested in investing in water for awhile now. This article dates back to 2016... https://www.wyattresearch.com/article/investing-in-water/
|
|
|
|
|
Joined: Sep 2006
Posts: 34,532
Legend
|
|
Legend
Joined: Sep 2006
Posts: 34,532 |
Investments in water for profit will only drive the price of clean water up and up. Dilapidated water systems throughout the country might somewhat benefit from the investments for updating/repairs, but the end result will be skyrocketing costs IMHO. This is why it is dumbassery.
And both Biden and Trump ran on major infrastructure spending. If the government pumps a ton of money into water systems that are being traded, where do you think that money will go?
Last edited by OldColdDawg; 12/07/20 06:08 PM.
|
|
|
|
|
Joined: Sep 2006
Posts: 39,554
Legend
|
|
Legend
Joined: Sep 2006
Posts: 39,554 |
Investments in water for profit will only drive the price of clean water up and up. Dilapidated water systems throughout the country might somewhat benefit from the investments for updating/repairs, but the end result will be skyrocketing costs IMHO. This is why it is dumbassery.
And both Biden and Trump ran on major infrastructure spending. If the government pumps a ton of money into water systems that are being traded, where do you think that money will go? Maybe not as much as you think. Our local water utility is owned by a for profit company, American Waterworks. I think the company is owned by a German outfit and is traded on the NYSE. The utility is still regulated by the state in which it does business, so rates can't just jump on a whim. Any proposed rate increase has to be presented to the state for approval. I think this company owns water utilities in maybe 15 different states.
If everybody had like minds, we would never learn. GM Strong
|
|
|
|
|
Joined: Sep 2006
Posts: 11,064
Legend
|
|
Legend
Joined: Sep 2006
Posts: 11,064 |
Kind of outraged that there would be (is) a very tangible incentive and payout to ruin water and drive the price up more.
"Every responsibility implies opportunity, and every opportunity implies responsibility." Otis Allen Glazebrook, 1880
|
|
|
|
|
Joined: Sep 2006
Posts: 39,554
Legend
|
|
Legend
Joined: Sep 2006
Posts: 39,554 |
Kind of outraged that there would be (is) a very tangible incentive and payout to ruin water and drive the price up more. I am as well. However, that threat has been real for quite some time now. How hard would it be for a well funded terrorist group to dump 55 gallons of super toxic material in to a water source? Poison just 1 or 2 and they will have effectively poisoned all.
If everybody had like minds, we would never learn. GM Strong
|
|
|
DawgTalkers.net
Forums DawgTalk Palus Politicus Diversify Your Portfolio: H2O Now
Available For Public Trading
|
|
