Price Manipulation

This is a big suprise to me. <a href="http://www.billingsgazette.com//index.php?id=1&display=rednews/2004/02/18/build/nation/50-beefsettlement.inc">$1.28B awarded to cattlemen in price manipulation lawsuit</a>. I assumed the meat packers would have deep enough pockets to buy the verdict they wanted. I know awful cynical of me but that's the way our justice system appears to work most of the time.<br />n<!–more–><br />nThe whole captive supply issue has wieghed heavy on the beef industry for quite a few years. Not that this is going to answer the question since Tyson is sure to appeal it. For those who don't know, captive supply is those cattle that the big three meat packers own before they are slaughtered through a contract or or outright ownership of them. This allows the meat packers a supply of cattle, under their control, allowing them not to have to buy cattle on the open market if the price gets too high. The big thing about captive supply in my opinion is that it is illegal under federal law. The Packers and Stockyards Act does not allow meat packers to oiwn cattle but the federal government has opted to never enforce this law. They probable never enforced it due to the meat packers deep pockets. Maybe there will be some money coming out of those deep pockets now and it will all go to the lawyers. There the only ones that ever win.<br />n<br />n<b>In the business world, the rearview mirror is always clearer than the windshield. Warren Buffett</b>