Posted on 05/22/2008 5:51:24 AM PDT by wildbill
We’re almost there now. When the bottom drops out a lot of speculators are going to get their @sses handed to them.
CNBC is a willing co-conspirator for all the hedge funds who have their hacks on forecasting $150 or $200/bbl. oil. They are all in bed together, promoting the Democrat victory in Nov. They should all be sued when the bubble bursts, as it most definitely will.
It is heartening though, to see that the Congressional hearings with the oil company execs are being universally panned by everyone. The publicity hogs in D.C. have worn out that old propaganda gambit, and no one believes they can do anything about the price of oil.
However, I would like to see someone ask Nancy Pelosi why the price of gasoline has almost doubled since the Dems took over Congress in ‘06. When they campaigned on “doing something about the price of oil” the voters didn’t think they meant they’d double the price.
Oh, absolutely. I don’tknow when the world’s going to wise up to the fact that these people are trading with the value of a country’s economy and wrecking the infrastructure while they’re at it.
Yep. When the summer tourism season hits and a lot of people opt out of driving cross-country for vacation, watch for the panic to set in.
China also suffered two devastating natural disasters in just the past 6 months (cold winter and earthquake). Over half a million structures were destroyed and over 100,000 businesses demolished. Their oil demand right now should be way down. Heck, they cannot even get oil to some earthquake damaged regions.
“Stored oil” means it is oil that is not on the open market yet. They hold it in reserve and control the price that way. It also means wells that have been drilled, but not depleted or yet sold. In this case you seem to consider the oil not yet produced as a “surplus”.
That’s not how the industry or the market works. In fact, very little of the oil taken out of the Alaska Pipeline goes to our domestic use. Most all of it is contracted to Japan and is tankered there the moment it hits Valdez. The reason is logistics and shipping distance and difficulty dealing with shipped products.
Most of our oil comes from Canada via pipeline.
The speculators tracks are found in the commodity pits and in corporate boardrooms of financial giants. They took option postitions early on and now talk up the price.
Supposedly the DEms held a hearing the other day and called in the CEOs of oil companies to berate them and find out why oil prices were going through the roof.
Did you hear anything about this hearing and their response?
Dems want to demagogue the issue.
Second, ''margin'', in the world of futures, is a performance bond put up by the trader as a guaranty of performance on the contract, and a guaranty that he will be responsible for any trading losses. These dolts (Sen. Bunghole Bingamen, to name one) who are calling for gigantic margin requirement increases on the order of tenfold, are off on some other planet. Name me an instance, ANY instance, of a 50-60-70% performance bond on ANY contract on this planet.
Third, in futures mkts there is NO borrowing by anybody from anybody, except sometimes in the case of physical delivery (the brokerage will lend the client the capital to pay for the goods, on the condition that he sell them back into the spot mkt immediately).
Other than those points, your cited source may have a clue as to what he's talking about.
we were thinking of that for our living room/dining room/kitchen area on the first floor.
It’s a good sized house with 5 different zones on the furnace.
One zone is a new addition for my mother-in-law - a pellet stove could heat her whole apartment.
So, we’re wondering if there’s a way to keep the furnace running on a different source.
Close. The rules need to be reinstated... Glass-Steagall Act.
Anyone with the reputation of Goldman Sachs who predicts $200 oil in the future is going to be listened to—with the predictable result of an immediate run up in oil futures as speculators want to get in on the run-up.
Does anyone here think that Goldman Sachs is already sitting on some very sizeable oil futures options? They are investment bankers. That’s what they do—invest and speculate on financial paper.
From what I understand you can hook these units into your existing duct work and wa-lla...heat!
The figure cited was 6.0 %. It was cited by the author from an earlier article the author wrote. Do not know when that article was written.
Third, in futures mkts there is NO borrowing by anybody from anybody, except sometimes in the case of physical delivery (the brokerage will lend the client the capital to pay for the goods, on the condition that he sell them back into the spot mkt immediately).
Perhaps borrow was a poor choice of words by the author. As you stated, Guaranty is much better. That could be a simple England verse States problem. For Example - They refer to rent as let over there.
Other than those points, your cited source may have a clue as to what he's talking about.
Well he is from England. You can post comments to his article if you like.
Partially true, but T. Boone hasn’t always hit homeruns!
Can remember back in the 70’s GAS LINE days, a lot of “offshore” oil stockpiling was going on and may prove today’s oil scam could have an end as well.
This statement doesn’t make sense.
The bubble will not burst until after the election. Especially if obama-lama-ding-dong gets elected. IF that happens, the price will plummet (congress finally telling the traders that there is no reason for the run up) allowing the dhims to claim a major victory. The dhim congress needs this issue of high oil prices for their campaigning. So, don’t expect anything until after Nov.
Watch the video I posted...You'll then find out...
“in futures mkts there is NO borrowing by anybody from anybody”...
With the margin you cite there has been an increase in the cash working capital requirement of the futures market in propertion to the increase in value of the commodity.
“On November 12, 1999, President Bill Clinton signed into law the Gramm-Leach-Bliley Act, which repealed the Glass-Steagall Act of 1933. One of the effects of the repeal was to allow commercial and investment banks to consolidate. Several economists and analysts have criticized the repeal of the Glass-Steagall Act as contributing to the 2007 subprime mortgage financial crisis.”
Oops. Clinton and McCain involved.
http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Act
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