OK, I am going to have to print your post out and go thru it paragraph by paragraph. Lots and lots of good info that post. If you are willing, I will get back to you with my questions on this.
My 1st question though. IS there a way to undercut the speculators? If I were to make you “King for a day” what would YOU do about the problem of high energy prices?
2) Enforce position limits on ALL players in the energy mkts. Limit violations should be treated as felonies, not just slapped with a piddly fine, but with real live time served at the Greybar Hotel.
3) Change exchange practices on daily trading limits. This has been done before w/o any goobermint input at all, and there is AMPLE precedent for it. The mechanics of this are a bit technical, and I'll spare you the details until/unless you ask for them.
4) Suspend Section 1056 of the IRS code for large specs, banks, and funds regarding any energy market or markets. Again, this is technical; you can have the details if you like.
5) Pick ONE recalcitrant big player (G-S would be my preference), and conduct an unannounced audit raid on their positions, and doings generally, in the energy mkts.
6) Drill. Nukes. Coal.
The first 4 will cool out the mkts, not a doubt in the world of it, and can be accomplished in any 30 given days.
The fifth is to set an example for the next group of would-be runaway specs: this will happen to you, next time.
The sixth is to prevent this sort of nonsense from occurring again for the foreseeable future.