I haven’t been involved in a long while so I couldn’t tell you.
My reason for mentioning the LME is that it’s an example of a market that succeeds because of regulation. Standards exist for the analysis and purity of every metal. These have to be enforced. The rules of the market have to be obeyed. It works. Now take as the opposite the coffee market. The quality and treatment of beans varies enormously. Asymmetric information from people on the ground is crucial. The Internet is improving this by making things more transparent and we have the growth of fair trade and equal exchange. As the regulatory oversight of coffee improves, the product gets better and cheaper.
I have had to try, unsuccessfully, to explain things like this to CEOs. I once tried to explain European standards and how they affected our business to a CEO, shortly after which I left the company (I resigned). I tend to think I know exactly where Trump is coming from. In all its short sighted, next quarter, don’t bother me with detail, sociopathic glory.
