Get ready for Onion Shortage II, Vinnie Kosuga Boogaloo via /r/wallstreetbets #stocks #wallstreetbets #investing

Get ready for Onion Shortage II, Vinnie Kosuga Boogaloo

It seems likely that onion shortages may hit parts of the country, due to a listeria outbreak related to onions produced in Georgia being recalled. The states where the contaminated onions were shipped include Florida, Georgia, Massachusetts, New York and Pennsylvania. So how can you play this minor potential onion shortage? You can't, because its illegal to trade in onion futures due to Vinnie Kosuga. Due to a successful corner of the onion market by Vincent Kosuga and Sam Seigel in 1955, in which they made millions of dollars by buying up 98% the onions available on the Chicago Mercantile Exchange a through futures contracts, driving the price sky high, and then buying puts on said onions and tricking traders into thinking massive amounts of onions were being injected into the market by moving freightcars of onions around. Prices crashed, causing various onion farmers to go bankrupt and a subsequent real onion shortage occured. After the onion market crash and Kosuga's hijinks, Congress decided to pass the Onion Futures Act which made trading in onion futures illegal in the united states.

Submitted July 04, 2022 at 04:25PM by ScipioAtTheGate
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