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To: B Knotts
No.

Speculators ride the trend. The trend is rising demand for oil and flat supply. So the traders are riding that trend line. Fix that trend line by either significantly increasing supply or dropping demand and you will fix the speculation problem.

What is it about Americans that they desperately NEED some sort of big evil business interest to blame for everything? Why is is so utterly impossible for them to understand simply market economics?

2 posted on 06/25/2008 8:22:31 AM PDT by MNJohnnie (http://www.iraqvetsforcongress.com ---- Get involved, make a difference.)
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To: MNJohnnie

He’s not blaming “big business”; he is explaining that ETFs are introducing a new mechanism into the markets that will take some time to adjust to.

Note, he doesn’t say government should do anything.

It’s pretty clear, though, that ETFs are at least partially driving the current bubble.


3 posted on 06/25/2008 8:29:26 AM PDT by B Knotts (Calvin Coolidge Republican)
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To: MNJohnnie

Also, if you click over there, and check the comments (from traders), you’ll see some more detail about how long-only institutional investors are adding to the problem.


4 posted on 06/25/2008 3:24:36 PM PDT by B Knotts (Calvin Coolidge Republican)
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