From some of the comments referring to my post from Marketwatch yesterday, I get the feeling some didn't quite understand what those folks were saying. They weren't talking about regulating the price for gasoline, they were talking about regulating the speculators who have bid the prices of oil up on the futures markets to roughly double what those prices should be if you just look at supply and demand. These aren't the normal commodities traders who've been in the market forever, these are the fast buck artists who are screwing us over to line their pockets. They don't produce oil, they don't refine oil, they don't transport oil, they don't touch oil, they probably wouldn't know oil if they slipped and fell in it.
Jerry
Yes, you were right on the attempt to regulate speculation by increasing the normal 10% margin on futures purchases. The rest is dead wrong, pardon the expression "speculative" and obviously uninformed. No, futures traders did not "double" what the price should have been. The market did. It falls under the general heading of capitalism. If you will research the firms and locations purchasing significant dollar amounts of oil futures, you will find that the vast majority are foreign investors seeking to fill future contracts for their clients in their respective countries. That's their job, it's what they do. If you've had any experience in commodities, the term "fast buck artists" wouldn't apply. Nowhere, is there a riskier business than international commodities and the "fast buck artists" jump in as a result of a "brilliant idea", wreck, and go home and whine. As they say, if you can't piss with the big dogs...stay on the porch.
As far as commodities traders not knowing anything about oil....wrong.....if they've managed to stay afloat over 24 hours. It's really not as easy to research and forecast a futures market as the dem's on MSNBC would lead you to believe. Big or small it is high risk beyond all reasonable expectations. I deal in oil futures as well as corn, soybeans, beef, pork and occasionally the rice market. Yup, I do know a little something about oil from the rigs to the money players allowing you a seat at the table. I like to think I know enough about the other markets to make wise decisions as well. As you might expect, corn and soybeans will make a bundle, but I promise that I or anyone I know in the marketplace didn't cause the floods that are skyrocketing prices.
The best way to really learn if the "speculators" are driving up the market is to gather up your life savings, mortgage the house and jump in for some of that quick oil money. Let us know in a couple of weeks where you stand.
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Topic: Gas price!!!!!!!! OUCH. (Read 65439 times)