Bought gas lately? Could be that you are buying more than gas--you could be buying a speculators speculation too. Are we being sold a swamp about crude oil and gas prices? Congress is trying to do something about what's called "dark markets." But the bill was defeated. If politicians and legislators don’t reign in the speculators there will be hell to pay at the pump. The bill could have helped to cut the cord that ties oil speculation to higher crude prices:
Legislation is pending in the U.S. Senate that would require the Commodity Futures Trading Commission, which regulates NYMEX, to significantly raise the amount of money, or margin, that speculators have to put up to trade oil futures. This planned bill, defeated today, is controversial as to its effect on oil prices.
Bush bashes desert sheiks
It’s not rumor mill or lie, oil was just under $30 a barrel when Bush took office, it is now $130 a barrel and people are mad as hell. Bush recently tried to “jawbone” his friends into greater oil production but had no luck. Bush along with the Dems and Republicans are complicit. However, can the blame be squarely placed at the door of the Fed?
The Saudis are making it clear that they believe that the price of oil is not borne out by current market price.
The culprits I suspect are the billions banks and the financial sector lost in the housing bubble, recall that?
It's similar to the housing bubble," said Ernie Acebo of Concord, referring to trading in oil futures. "It (oil) will continue to go up, then the bubble will pop," Acebo said. "I think it's a result of commodities trading," Behrens said. "Demand is not that great."According to oil industry analyst Stephen Schork, Behrens and Acebo are right on track. Mercury News
Americans are still reeling from it. So, we could have double-trouble on our hands. There is an oil bubble now—strange coincidence or strong connection? Did the weak dollar cause the rapid crude rise since 2003? The hard evidence points the compass of the needle at the regulation or lack of it for future and market speculation, oil cronies of Bush, Halliburton, hurting banks and the cupidity or stupidity of plain folks. The bill to regulate the speculators was defeated today. So the question remains: Do we really want to make another batch of millionaires on the backs of the $10.00-an-hour-job crowd? I don’t think so.