ping
The Goldman Sachs of the world bet heavily upon lending to subprime borrowers, figgering to take over an inflationary higher home; thus, profiting upon the resale of the repo.
The housing bubble slowed down; therefore the Goldman Sachs of the world had to recoup or Bear Stearns.
So buy oil on the futures markets, have the media announce rebels in Nigeria doing this or that for oil to spike. Sell on the way up, wait for markets to calm to buy. Buy, then have the MSM announce a record hurricane season for this year, then sell on the way up, buy when the market settles down.
Bear Stearns was too, too slow to jump aboard this gravy train.
Rub the No Drill Dems noses in this....Increasing production won't lower prices, eh?
If you bought it,a truck brought it. I wonder how many “we can't drill our way out of this” slimy politicians have oil stocks? I am so frustrated with Washington I could (as my dad used to say) bite nails in half!
BTTT
As long as there is a good reason to speculate there will be speculation or shortages. They need to attack the reason that there is so much speculation, Iran and the lack of reserve capacity.
Fuel is not in short supply. What is in short supply are future’s contracts. Actual world usage is only responsible for about $60/barrel of the price.
The future delivery of oil is in doubt. This is due mainly to Iran.
It is analogous to generators before a hurricane. The price does not shoot up because electricity is in short supply. It shoots up because people fear that there will be an event in the future that will put it in short supply.
Try going out before a hurricane and trying to talk down the price of a generator based on the fact that the supply of electricity is currently plentiful.
Deal with Iran, or negate the Iran problem by opening up more reserves, and the price will come down. Why? Because the future supply of oil will no longer be in doubt.
Or else what? This is as silly as suing OPEC for violating US anti-trust laws. Or the Saudis demanding that Budweiser shut down because alcohol is against Sharia law. Wait, that last hasn't happened yet, but it makes as much sense as ordering the Brits to obey our convoluted investment regulations.
If Obama gets elected and smacks down these energy commodity markets (I invest in coal and energy) he will be crowned as king.
I much prefer a Republican (Geo Bush) does the dirty work. I doubt he will
How can the US Commodity Futures Trading Commission regulate trading on a foreign exchange? The foreign exchange would probably follow commonly accepted practices since the management are reasonable, but they don’t have to follow US Commodity Futures Trading Commission recommendations.
BOHICA
However bead one might think speculators have made the current situation, it is guaranteed to get worse with government intervention.
For example, government intervention in the exploration and delivery of oil to market is what put here in the first place. If they can't even grasp such simple concepts as supply and demand, what makes anyone think they can grasp the intricacies of the futures market?