I guess you could limit the futures market to only allow hedgers but who's going to absorb the risk on the other side? If you're hoping that the short hedger is always going to be there for the long hedger at the right price and time, and vice versa, good luck with that... Not to mention the size of the global OTC energy market is infinitely larger than NYMEX and ICE...As a result increasing margins will only remove a small fraction of the specs, the large funds have the capital to trade OTC. What's funny is that you'll rarely see anything like Calpers recent announcement that they are allocating billions of dollars to commodities in the news...The average American wouldn't be to happy to hear that "the retirement funds of California govt employees are driving up the price of crude"...
have you noticed that this thread does not show up on the front list off the main webpage? wonder why? hmmmm..... conspiracy
You can thank your local Republican. Anyone can afford gas at $5. If you can't and you're poor, it's because you don't have 3 jobs.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aQsqutkXNIv8&refer=home ``Strength in commodity markets will be something we should see generally over the next 10 to 20 years,'' Read, 44, said in an interview in April, a year after he moved to Calpers from Deutsche Asset Management. ``The actual importance of the energy and materials sector we believe is going to explode.'' What a bunch of fools... X will continue going up over 10-20 years. Sounds like a bubble.
you conveniently forgot the "Holocaust"? Except for the AIPAC cult that has the US in its grip, the average american couldn't care less about any of the above wars
Whats wrong with $100 oil? This is still somewhat of a free market. Just about anyone could go long oil futures back at $83. But you didn't and now you missed out and why? cause you were afraid you would lose money. guess what, thats called a free market You could have bought xexon or countless other energy stocks that would have made you money. So what is the problem here? Take away margin on futures contracts because YOU think the price is higher than it should be??? Right, high government regulations has a wonderful history of adding wealth Maybe I am alone but I would like to see oil prices get to the point where we start importing less of it and figure out ways to stop giving people who hate us money. I think if we raised the federal tax on gas by $1 gas prices would go up only about 60-70 cents and the difference would be lower oil prices for the arabs. Not gonna happen but a guy can wish. Discl - My only investment in gas is when I fill up my truck which cost me over $70 last time. I didnt like it but nobody put a gun to my head and said you have to drive a big ass SUV to work I also don't know of anyone who has had a gun put to their head making them drive a car to work or living 40+ miles away from work. They are choices people made/make. So I am sorry to disagree with you but I don't buy into the concept that anyone is doing anything to the public. Best of trading to you
I wholly agree. The markets are so efficient and totally not manipulated. I mean, after all look at Enron. The worlds most profitable corporation. Because of absent government regulations, it is the most effciently managed and therefore able to compete fully. When is Enron paying its next dividend. last I heard the yield was hovering above 10%!
the risk is the futures markets become so dysfunctional that counter parties go bust and margins go to 70% or higher... or they force Joe12Pack with few verifiable liquid assets out of the show or government steps in like it did during the Hunt silver fiasco and imposes a liquidation only market. a risk, how high or low?, well that's what makes a market worth getting up at 7 am for