Capitalism eats its tail

The Folks Who Sell Your Corn Flakes are Acting Like Goldman Sachs—and That Should Worry You | New Republic

Over the last decade, some of the world’s biggest traditional traders in grains, oil, and metals have quietly taken on many attributes of banks—running billion-dollar hedge funds, launching private equity arms, and selling derivatives to clients. These businesses enable trading firms to tie up large sums of money in bets and profit off insider information. Unlike the banks, these companies have escaped regulatory scrutiny—even though experts say they present similar hazards.