Sorry man, you got this one wrong. It appears that you want to abolish speculation (in an admittedly speculative market, but that's another story). Well let me tell you that funnily enough, they do want it to stay volatile, but they also stabilize it with their trades.

Speculators cause stability in the market. If they weren't there, who on earth would ever buy a plummeting commodity or asset? Without speculators it would drop to zero. Or the opposite, how would you ever get a rally in a downward spiral if it wasn't for short covering?

So don't blame speculators so easily. Yes, they make a lot of money with volatility, but have in mind that they also risk their pants too.

See as an example the recent short selling ban by several European governments, imposed on the Stock Exchanges. The result of such moves in the past has always without exception been a stock market dropping more rapidly than before the ban. Why? Because speculators are not allowed to participate in price discovery. Greek stock exchange is down 16% since then, and it was falling at 5-8% per month before.

If you don't believe me, check the indexes of the exchanges that banned short selling 2 weeks ago, and compare them to the indexes in 2 months time (end of October). Or check the recent history in the NYSE (2008 autumn).

It might seem counter-intuitive but this is the case. And I'm putting this here, because I had the same delusions as you present above, about speculation, before I finally understood what's going on in money markets.

Hope it helps.