Coke also turns out to be a good example of one of my favorite phenomena—people just trying to run normal businesses who have reason to take advantage of the existence of “useless” speculators. Jakab notes that “currency fluctuations are likely to be a drag on operating income in the fourth quarter, after boosting it by 6% in each of the last two periods.” Getting better at hedging these kinds of risks away can be useful for everyone from gourmet cheese shops to Starbucks and beyond, but it turns out to be pretty hard to pull off perfectly. Doing it at all requires the existence of a big and liquid market in currency speculation so that all the different kinds of firms operating “real” businesses have a pool to buy and sell into.
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