Onion Futures
The Chicago Mercantile Exchange started as the Chicago Butter and Egg Board. Once the New Dealers subsidized daily products, there was no need for butter futures. Looking for other business, the Merc developed onion futures in the 1940s. Then in the mid-1950s traders cornered the onion futures market, driving prices toward Dutch tulips at the height of tulipmania. Onion farmers experiended the euphoria and, instead of selling and making a killing, bought futures at sky high prices. The bubble of course burst and the farmers lost big. What to do? Lobby their Congressmen and demand a ban. Congress was forchcoming and onion futures were banned forever. We can no longer speculate on onion prices. Another idiotic federal law passed to apease irate constituents.
