Speculators are causing ( enter commodity name here ) price rise: http://blog.cleveland.com/metro/2011/01/sen_sherrod_brown_said_oil_spe.html
This is just political scapegoating at just about its most absurd. The markets are there for price discovery. Period. If the speculators on the long side are wrong, they will get burned. You have to let it play out. I don't see any other alternative.
Has someone ever read something like : "Speculators are maintaining artificially low natural gas prices, not supply and demand" ???
What you are seeing is bubble formation driven by leverage. Without leverage subsidized by government funding, there would not be as much bubble formation. That is why you have position limits, reporting requirements and leverage limits.
Well we do hear from the GATA crowd that evil bullion banks are keeping silver and gold prices artificially low through massive shorts. Apparently they have been doing this for years, losing money hand over fist during the gold and silver booms -- if GATA is to be believed. Me, I don't think J.P. Morgan is in business to lose money.
It has been mentioned in the media hundreds of times that the paper demand is 11 times the physical demand what this means is that once you ban speculation like options futures fwds and short sale and only allow Spot TRADING in oil, you will see oil prices get down to cost which is probably around $20/brl and even lower. We are overpaying for oil in huge percentages and funding the terorists. But the US Govt is happy.
Hasnt the GATA and goldbug contingent been saying that PM`s are artficially low due to shorting by specs for some time?
WTI and brent futures daily volume = 11 * physical daily volume ? Sources please... I know nothing about physical oil but I read something totally different recently.
Sarkozy - G20 Should Regulate Commodities, Price Swings January 24, 2011 http://www.bloomberg.com/news/2011-...-20-to-regulate-commodities-price-swings.html
"One of the rules France proposes is for commodity investors to set aside a deposit equal to part of the value of the raw material being traded, according to the president. Brilliant.