Rice Rationing

What just a simple horrible day for news.

Wal-Mart Sam's Club announced limit to the amount of rice customers can purchase. This is voluntary (government isn't telling Wal-Mart to do this) but food rationing in it infancy may have just started in the U.S. I do not think it is that bad yet but one bad harvest year and we will be there.

It's funny to listen to all the CNBC talking heads over the last few weeks. "Oil, food, gas, are all way overdone and overextended and are in a bubble and are driven by speculators" while at the same time we need to "buying bank stocks and the worst in the market is behind us."

What sounds like the contrarian plays to you?

http://www.bloomberg.com/apps/news?pid=20601087&sid=a8eTi39MS7Vc&refer=home

Wal-Mart Stores Inc.'s Sam's Club warehouse unit is restricting purchases of some types of rice to four bags a visit as prices reached a record in Chicago futures trading.

and

"The warehouse clubs are doing it to protect their business customers, like smaller restaurants, caterers, nursing homes, day-care centers,'' said food consultant Jim Degen. ``The business members are the most important members in warehouse clubs because they generate so much more revenue per member.''