no my friend. Even after you adjust for the decline of the dollar, Do you really think that the current price of whatever energy product reflects the current fundamental factors of supply & demand? C'mon oil went from $30 to 135! Isn't it interesting once they went to dereg, prices have soared. This in Enron in California all over again. Why do they call it... The ENRON loophole. The loophole is that ICE is not regulated. This is exactly what the thread is about, Obama wants to reinstate regulation to prevent this from happening. Big institutional especially morgan stanley are HUGE owners in the commodities they are the speculators! This is the whole point about it not being regulated. THE BIG INSTITUTIONS TAKE DELIVERY!
Obama knows nothing about the market; back then he didnât even know the economy was in trouble or why the white working population didnât vote for him, and Iâm not sure if he knows it by now either. With his big mouth proclaiming to know everything and a fix it all kind of guy heâs still doesnât know what lays ahead, otherwise will you ever be hearing the end of it I wondered. sg20
But havent they been saying the reason partially for high oil prices and commodities is the weak $US . If the govt wanted to do something to prop up the $US everyone would understand and wouldnt blame them for intervention . It all comes down to that govt cant get anything done because democrats and republicans have to agree ( senate or congress ) and that aint going to happen .
Why don't these jokers just left the market alone? They just say whatever they get they elected. The reason for the high oil price is because of the depreciation of the dollar. Now there is an answer and please do something about it.
Take a look and how much the dollar has fallen and then take a look at how much oil has risen. Even after you adjust for the falling US dollar you still see oil is on a tear
Total market capitalization of crude oil futures is less than half of the size of Exxon Mobil (XOM). Crude speculators have caused a large increase in the price of oil because hoards of new money has moved into a relatively small market. The market capitalization of crude oil futures is around $177 billion, while the market cap of Exxon Mobil is around $480 billion. In addition, new investments in energy from institutional investors has reached a new high. Supply and demand has played a role in kick starting the boom in energy prices, but speculation is the major cause for the outrageous prices today. While no new oil fields (above 300,000 barrels per day) have come online since the 1980s, plenty of capped and untapped resources remain dormant.
Obama is correct. Stock margin requirement is 50%, but for oil futures the margin requirement is only 5%. Why should speculators be allowed to use 10 times more leverage on oil futures than for stocks? Excessive margin and easy credit contributed to the 1929 stock market crash, so why repeat history with oil? Personally, I think conservatives lose credibility on pushing for "free markets" when what we really get are "free casinos." I think we need to regulate futures markets to take out the excessive speculation and put the focus back on futures as a responsible hedging tool for producers and industrial buyers/consumers.
Impose a 1% tax on every financial transaction. That should clean up the mess and pay off the debts the republicans have saddled usa with.