Skip to comments.Three Cheers for Oil Speculators! (These folks are really the benefactors of humanity)
Posted on 05/02/2012 6:57:42 AM PDT by SeekAndFind
Oil speculators are benefactors of humanity. We should be very grateful to all of them. Next time you see an oil speculator, thank him for what he is doing. Most Americans would strongly disagree with me. But they are wrong -- not morally wrong, but factually wrong.
One of the consequences of the recent increase in the price of gasoline has been the demonization of oil speculators. Politicians, journalists, talking heads, bloggers, and agitators have been denouncing speculators and proclaiming that the general public has been harmed by their speculating. Most of the anti-speculator rhetoric has been civil. But some of it can be described only as hate speech: Google "speculator, bloodsucker" and you will be directed to 295,000 websites. And this anti-speculator hysteria has not been confined to the usual suspects on the left. For example, the normally sensible Bill O'Reilly has been bloviating about the wicked oil speculators.
We now face an even more dangerous idea than the idea that speculation is harming the average American: the idea that the government should do something about it. Many people, including the president of the United States, have called for the government to stop -- or reduce the amount of -- speculation in oil. Vermont's socialist senator, Bernie Sanders, has announced that he plans to introduce a bill to do just that.
According to President Obama, "[w]e can't afford a situation where some speculators reap millions while millions of American families get the short end of the stick." The president's assertion that some speculators have reaped millions is almost certainly true. But his implication that the American people have been harmed by that is false. Those who believe that speculation makes non-speculators like us worse off are factually incorrect.
(Excerpt) Read more at americanthinker.com ...
A long windy road to get to the punch line: Environmentalists (and the EPA) suck.
Since the 1970s it has been well documented that there were capped oil fields all over the US because it wasn't economically viable using existing technologies to extract the crude. Under Carter several capped fields were reopened because they had become money makers, again.
Without “evil oil speculators” the oil boom would have been confined to the original Pennsylvanian fields of the late 19th century! Anyone want to discuss the differences between the 1890s and today?
Futures trading tends to level out a fluctuating market. Its what the Board of Trade,and all the other futures exchanges, including the financial futures exchanges around the world and around the country do. The mush heads and socialists will not or cannot understand this.
Oh please. Speculators are only interested in making money, which is fine. However, making them sound like some noble business person providing a valuable public service is extremely dishonest.
Certainly--as opposed to the "Occupiers" and the parasites in Congress and the Press and on the welfare rolls!
For each speculator who becomes rich, how many fail?
The author is creating a ridiculously oversimplified strawman and holding that up as an ideal. The actual speculation market is far different and reality does not support his assertions.
This is not to say that speculation can or should be reined in by the government because speculation is now global and we do not have the ability to control it.
Not sure I see the corelation here. Consumer demand / business demands (i.e. engine improvements) would seem to be the more logical "encouragers" of technical advancement & exploration. The speculator neither adds to, nor subtracts from either of those demands over the long term, and whether the speculator is betting on rising or falling prices would not seem, on the surface anyway, to encourage investment on the part of the producer.
Can you provide some reasoning?
I have to wonder if BOR is going to revisit this issue. Or 60 Minutes, for that matter.
Show us some wealthy speculators, show us the broke ones. Show us how government rgulations play into pricing anomolies.
Just don’t wave your arms, and have no there there.
What does that have to do with what I posted?
For that matter, what do I care? It is thier decision to gamble thier money. If they win - nice job! If they loose, sorry - get a job with a more stable income. Just don't tell me I have to feel some debt of gratitude for thier nobel sacrifice ...
Nobody is saying you have to......but if we did away with the function of speculating, it will have terrible ramifications for the economy.
Right, and thats exactly what I called for when I said:
"Oh please. Speculators are only interested in making money, which is fine. However, making them sound like some noble business person providing a valuable public service is extremely dishonest."
Which is why you chose to call me out on my bashing of the evil oil speculators.
Oh, and if speculators were to stop speculating, the economy would not tank. Producers would still produce and consumers would still consume - there would be more seasonal fluctuation perhaps - but the world would still keep spinning.
In a free market there is a tendency toward the equalization of the price of a good in the present with the expected price of that good in the future. The activity of the speculators serves to transfer supplies from a period on which they are less urgently needed, as indicated by their lower price to a period in which they are more urgently needed, as indicated by their higher price. In this way, it brings about the optimum rate of consumption of limited supplies.
I gather you’re making money hand over fist lately.... :)
Greater liquidity and depth = smaller spreads.
Smaller spreads = lower prices.
That might be true in some cases, but that has nothing to do with the post you responded to where I asked for the the reasoning behind the assertion that Speculators / Speculation encourages technological advancement and exploration.
I am a Daytrader/Scalper, strictly looking for price action. So, whether, up/down (even sideways) I have the same outlook every day. My profit potential is not dependent on the price being driven up (or down) but strictly on the price action.
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