Ummm right. http://www.marketwatch.com/News/Sto...2-9687-DBE0518F6D48}&siteid=mktw#comments Gas prices could fall to $2 if Congress acts, analysts say By Rex Nutting WASHINGTON (MarketWatch) -- The price of retail gasoline would fall by half, to around $2 a gallon, within 30 days of passage of a law to limit speculation in energy markets, four energy analysts told Congress on Monday. Testifying to a House Energy and Commerce Committee subcommittee, Michael Masters of Masters Capital Management said the price of crude oil would drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135. Fadel Gheit of Oppenheimer & Co., Edward Krapels of Energy Security Analysis and Roger Diwan of PFC Energy agreed with Masters' assessment at the hearing. Other witnesses say speculators aren't a major factor in oil prices, however.
There is so much levered money piled into commodities right now that there could be vertical declines in some of these markets.
Obama AND McCain are trying to outdo each other in talking about how they will crush oil prices, and in the meantime Congress is actually seriously considering passing some of the most draconian laws regulating any commodity market ever - there is no resistance to the the drive to snap oil prices. None. The path of least resistance to sparking equity markets, improving consumer sentiment and reducing pressure off of major U.S. industries such as automakers, airlines, restaurants, hotels, retailers, etc., is to break crude. Interesting stuff.
Its hard to argue that the longterm fundamentals dont equal higher oil prices, but the price curve on the oil market is so steep that it will have a vertical decline when it breaks. Speaking of commodities in general, there are tons of new prop shops in chicago trading them. rooms with 50-100 guys
Could you imagine if congress drains the liquidity of out the commodities markets? You will have a few large players who will corner the market... anyone remember the Hunt Brothers?? Yes their demise is due to the fall in silver prices, but looked what happened when Congress increased margin. http://www.wallstraits.com/main/viewarticle.php?id=1298
Exactly, going to look like the dot com slide of 2000 when everyone decides to exit all at once. Easy 30-40% correction.
Regardless of whatever they claim, the Gummint has no vision nor concern of anything which extends beyond the next election date.