Posted on 07/10/2008 8:28:25 AM PDT by tobyhill
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.
48% of Americans still think the GOP controls Congress. No joke.
Anyone or any group that is incapable of differentiating between speculation and manipulation is not worth listening to/reading.
The blame is SQUARELY on the backs of both Houses of Congress...
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.
I’ve got enough blame to spread around on them both. Congress and oil speculators, blood-sucking parasites, one and all.
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.
Greedy speculation or damned smart business sense?
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.
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.
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
For some, trading in NYMEX futures is speculation, pure and simple.
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
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.
Good correction...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.