Transfer of Ownership of Physical Assets Should Require Taking Physical Possession of Same

One way to discourage the casino mentality and its impact on our economy – instability and higher prices as middlemen profit without adding value – would be to change our contract laws to require that purchasers of any physical asset actually take physical possession of that item before they can resell it.

This would not eliminate futures markets which are supposed to provide predictability for farmers and other producers. However, because you could not trade the future contract until you took possession of what you purchased, the gamblers would not want to play in the market – only those who are actually part of the market such as processors, distributors or retailers.

There would be some difficulty in defining “physical possession” to insure that it is enforceable.

There certainly would be an impact on the fluidity of markets and liquidity of participant’s investments, but it may be preferable to the gambling that takes place today.

What do you think the impacts would be – positive and negative?

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