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Airlines To Passengers: Blame Oil Speculators (try blaming the right people, Congress!)
CBS ^ | 7/10/2008 | Politico

Posted on 07/10/2008 8:28:25 AM PDT by tobyhill

Airlines are trying to divert Their frequent flyers' fury to a new villain: oil speculators.

On Wednesday, AirTran sent out an e-mail encouraging their passengers to urge Congress to crack down on commodities investors – labeled by opponents as “speculators.”

“Our country is facing a possible sharp economic downturn because of skyrocketing oil and fuel prices, but by pulling together, we can all do something to help now,” says the email, which went out to members of AirTran’s A+ Rewards Program. “Normal market forces are being dangerously amplified by poorly regulated market speculation.”

(Excerpt) Read more at cbsnews.com ...


TOPICS: Extended News; News/Current Events
KEYWORDS: energyprices; oil
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1 posted on 07/10/2008 8:28:25 AM PDT by tobyhill
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To: tobyhill
Oh, perfect! Let's have the gov't get more involved in the market and put regulations into effect that will become obsolete before they even take effect. Even if they were effective, they would simply create a new market in some place where the US laws can't reach. Like it or not, speculators do perform a function in the market.

If you really want to hurt speculators, Congress would be more effective if they would secretly set forces in motion that would dump about half of the Strategic Petroleum Reserves on the market overnight. Then, as the gov't is dumping the reserves on the market, have both parties hold a joint news conference and announce what they are doing as it is happening. The spot price of oil would go into the dumper. Speculators would take it in the shorts all the way down. When the new (lower) equilibrium spot price is sensed, the gov't jumps in and uses its ill-gotten profits to refill the SPR. While the spot price would go back up somewhat, it probably would increase due to the very real increase in demand from new markets like China and India rather than speculators who would likely be licking their wounds somewhere. Obviously, our Congress doesn't have the stones to do such a thing, but I'd sure prefer that to more gov't intervention in the market place. I'd much rather see the gov't use the market than try to change the market through ill-conceived regulation.

2 posted on 07/10/2008 8:32:38 AM PDT by econjack (Some people are as dumb as soup.)
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To: tobyhill

48% of Americans still think the GOP controls Congress. No joke.


3 posted on 07/10/2008 8:35:27 AM PDT by library user (There's no sandwich like prawn sandwich.)
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To: tobyhill

Anyone or any group that is incapable of differentiating between speculation and manipulation is not worth listening to/reading.


4 posted on 07/10/2008 8:36:45 AM PDT by SAJ
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To: econjack

The blame is SQUARELY on the backs of both Houses of Congress...


5 posted on 07/10/2008 8:38:02 AM PDT by Osage Orange (DO NOT POST TO ME AGAIN...!!!)
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To: econjack
Aren't reserves for emergency use? I wouldn't mess with that. Tell me why though if oil dropped 6 dollars a barrel last week why gas prices didn't drop at least a few pennies and some even went up.

The public seems to be fixing this problem though. The message has been sent that 4 dollars is our "we aren't going to take this anymore". As people continue to cut back on driving, traveling and luxuries hopefully the ones holding the oil in one hand and their money bags in the other will realize we aren't going to buy their liquid gold at those prices.

6 posted on 07/10/2008 8:39:58 AM PDT by CindyDawg
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To: Osage Orange
The blame is SQUARELY on the backs of both Democrat Houses of Congress...
7 posted on 07/10/2008 8:41:35 AM PDT by CindyDawg
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To: library user
48% of Americans still think the GOP controls Congress.

Guess that explains the 9% approval rating.
8 posted on 07/10/2008 8:43:02 AM PDT by Notasoccermom (.)
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To: tobyhill

I’ve got enough blame to spread around on them both. Congress and oil speculators, blood-sucking parasites, one and all.


9 posted on 07/10/2008 8:46:48 AM PDT by OB1kNOb (ISLAM IS THE SPIRIT OF ANTICHRIST, DIRECTED BY SATAN AND HIS FALLEN MINIONS.)
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To: tobyhill

I can understand why congress is clueless about everything. They’re there because they can do nothing else. However, I’m quite underwhelmed by so-called airline executives making such clueless claims. No wonder they cannot make money.


10 posted on 07/10/2008 8:46:54 AM PDT by Da Coyote
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To: tobyhill
Southwest Airlines hedged (speculated) their fuel at $50 per barrel a few years back. I believe some of that $50/barrel fuel is locked in until 2012. Guess that is why they are the only airline making money.

Greedy speculation or damned smart business sense?

11 posted on 07/10/2008 8:48:13 AM PDT by spectre
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To: library user

RE :”48% of Americans still think the GOP controls Congress. No joke”

I have been trying to tell republicans this for a year. It’s democrats plan and it’s working. It’s because of the dynamics of having Bush in office. It’s what makes McCain so terrible for conservatives.

Do you have a link to a real poll. I could used that.


12 posted on 07/10/2008 8:48:53 AM PDT by sickoflibs (We cant win elections (with illegal's votes) by out-welfaring Democrats)
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To: spectre

That’s the exact point, the airlines only thought of the moment instead of the future. If 9/11 wasn’t a hint to them that they needed to change their ways then I don’t think anything would but now they want another bailout.


13 posted on 07/10/2008 8:52:42 AM PDT by tobyhill (The media lies so much the truth is the exception)
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To: sickoflibs

This one takes a bit of reading but polls indicate public wants congress wants to be thrown out AND they want democrats to take over congress. We need a poll that asks why.

http://www.pollingreport.com/cong2008.htm


14 posted on 07/10/2008 9:04:11 AM PDT by sickoflibs (We cant win elections (with illegal's votes) by out-welfaring Democrats)
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To: SAJ

For some, trading in NYMEX futures is speculation, pure and simple.


15 posted on 07/10/2008 9:08:37 AM PDT by RightWhale (I will veto each and every beer)
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To: tobyhill
The solution to the Airline mess is basically simple.
Based on current fuel costs, allow the Airlines to
charge what they must to make a reasonable profit.It may
mean that they reconfigure their planes for all commercial
or all first class, whatever. No-one has a “right” to
fly: if they can't afford it, they can take the train or the bus.
16 posted on 07/10/2008 9:08:45 AM PDT by upcountryhorseman (An old fashioned conservative)
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To: library user

This one takes a bit of reading but polls indicate public wants congress wants to be thrown out AND they want democrats to take over congress. We need a poll that asks why.

http://www.pollingreport.com/cong2008.htm

“Thinking ahead to November 2008, regardless of your local contest, which party would you like to see in control of Congress after the next congressional elections: the Democrats or the Republicans?” Options rotated

democrat=54%, republicans=40% .

“When you think about Congress, do you think the average representative deserves to be reelected, or would we be better off throwing most of them out and starting over with new people?”

45%=throw out/26%=re-elect


17 posted on 07/10/2008 9:10:05 AM PDT by sickoflibs (We cant win elections (with illegal's votes) by out-welfaring Democrats)
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To: CindyDawg
Yes, the SPR is exactly for emergency use. That's why I also said they should use the funds to buy back the oil they sold, but at the new lower price. The actual profits from the exchange will probably end up in congressional freezers, anyway.

As to the price, gas prices have dropped here in Indy about 8 cents a gallon from about a week ago. You're also right in that consumers are responding by driving less. Personally, I've dropped from a tank a week (a Camry) to about a tank every three weeks. A good part of this is because I'm a teacher and I'm off for the summer, but an important part is that I "combine" trips now. Before, if I needed a gallon of milk, I'd go to the store and buy it. Now, I try to figure what else I can do in that same vicinity during the same trip. I don't know how much I'm saving by doing things this way, but I'm sure it's something.

18 posted on 07/10/2008 9:11:29 AM PDT by econjack (Some people are as dumb as soup.)
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To: CindyDawg
The blame is SQUARELY on the backs of both Democrat Houses of Congress...

Good correction...

19 posted on 07/10/2008 9:12:51 AM PDT by econjack (Some people are as dumb as soup.)
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To: tobyhill
Speculators?
Southwest speculated that oil prices will go up and secured oil prices at low low prices.
No lay-offs and a healthy bottom line for Southwest. Other airlines start blaming speculators instead of looking into the mirror at a dupe.
On top of reducing schedules, laying off people, running up billions of losses, airlines still do not accept that demand and supply are the deciding factors influencing oil pricing
It's hard to take, but airline executives and employees have yet to comprehend that Democrats sitting in Congress by blocking drilling (supplies) forced them into their idled status.

20 posted on 07/10/2008 9:35:04 AM PDT by hermgem (Will Olmr)
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