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Blame oil speculators?
Discuss the second round of this week's Dust-Up.
1.
When Congress asked investors if speculation was the problem, they said "It's supply not us". Get the word out, Greed is not GOOD.
2. When 1 out of 19 contracts are physical barrels of oil and the other 18 are paper contracts for oil, there is a serious misalighnment of trading contracts. When demand for paper outstrips demand for physical by 1800% there's a real problem! When one can control 1000 barrels of oil by only putting up enough to buy 70, he!!'s going to break loose sooner or later. When there is more oil controlled on paper then there are proven reserves in the world...Speculation IS the problem...
3. nice
4. hitler said, "people are taken in more easily by a big lie, than i small lie" and joseph goebells said " repitition, repitition, repitition ". how true it is, and this was said almost 70 years ago, don't you know this world is run by a handful of men?. kings and presidents are just fancy figureheads., it's a shame that for the greed of a few men, so many millions have to suffer.............i also believe it was thomas jefferson who said, "every hundered years or so a revolutuion is good for the country"...............we are overdue!,
5. I agree speculation has much to do with the skyrocketing increase in oil. Demand has not gone up 700% since 1999, but prices have. However, in one sense the high cost of oil is bringing us down to earth. I remember when Ford introduced the huge Excursion SUV in 2000, I cringed. Do we really need vehicles bigger than most living rooms to go to the mall. It's amazing how companies can influence peoples emotions to buy things we really don't need.
6. "So no matter how high speculators push the price, they're unlikely to push it far enough" Obviously, you're living in a situation where you've not felt the pinch. However, by the time YOU do, a lot of others will be crushed. Until you find a better, less expensive alternative for the economically disadvantaged, I would suggest that you wannabe elitists slow down with your wishes of higher prices and conservation. Some people still HAVE to drive to work.
7. >I can only assume you don't have a very clear memory of what 1999 was like. Do you remember the World Wide Web of 1999, where it took five minutes to download a family photo? There was no Wikipedia, Netflix was brand new, there was no such thing as buying an MP3 download -- followed by additional blather on all the stuff we did not have. But food is more expensive in real terms, so is transport and energy in general - utilities, heating you name it. So is medical care. And you think ipods and mp3s make up for this?
8. You could both use an economics lesson! The reason supply has kept up with demand is because prices have risen. The question you need to ask, but there is no way to answer, is what would have supply and demand been at 2005 prices. Please find an economist who can educate you!! There are plenty in California. If specualtive buyers have been right they will have decreased tomorrows prices but reducing todays demand and increasing tomorrows supply. If they are wrong, which is my opinion, they will be broke, or at least a lot poorer.
9. A bad stock market made the futures market look attractive. Too, you can buy into the futures market by putting down much less cash (called margins.) . The real issue seems to be the cost of so called "Sweet Crude." Unfortunately, production has not kept up with demand. In short - not everyone has it. I think futures speculators should have to put more money down to buy contracts for futures with margins that are at least comparable to the US stock markets. Ron
10. It’s Republican deregulation, ie the big rip off. Then the crash. Telecom (MCI, Worldcom). Energy (Enron, Arthur Anderson). Housing (Countrywide, Freddie mac & Fannie Mae) and now investing (Bear Sterns and more!). Republicans talk a good game of deregulation and free markets, but it's just code for rip off the poor saps who buy their BS. Oil prices are the result of fund investor on commission. No one cares because those 'in the know' are billionaires with no financial, family or patriotic ties to our country. They've become 'international wealthy'
Submitted by: LastStand
2. When 1 out of 19 contracts are physical barrels of oil and the other 18 are paper contracts for oil, there is a serious misalighnment of trading contracts. When demand for paper outstrips demand for physical by 1800% there's a real problem! When one can control 1000 barrels of oil by only putting up enough to buy 70, he!!'s going to break loose sooner or later. When there is more oil controlled on paper then there are proven reserves in the world...Speculation IS the problem...
Submitted by: LastStand
3. nice
Submitted by: gwk
4. hitler said, "people are taken in more easily by a big lie, than i small lie" and joseph goebells said " repitition, repitition, repitition ". how true it is, and this was said almost 70 years ago, don't you know this world is run by a handful of men?. kings and presidents are just fancy figureheads., it's a shame that for the greed of a few men, so many millions have to suffer.............i also believe it was thomas jefferson who said, "every hundered years or so a revolutuion is good for the country"...............we are overdue!,
Submitted by: modelman360
5. I agree speculation has much to do with the skyrocketing increase in oil. Demand has not gone up 700% since 1999, but prices have. However, in one sense the high cost of oil is bringing us down to earth. I remember when Ford introduced the huge Excursion SUV in 2000, I cringed. Do we really need vehicles bigger than most living rooms to go to the mall. It's amazing how companies can influence peoples emotions to buy things we really don't need.
Submitted by: Scott
6. "So no matter how high speculators push the price, they're unlikely to push it far enough" Obviously, you're living in a situation where you've not felt the pinch. However, by the time YOU do, a lot of others will be crushed. Until you find a better, less expensive alternative for the economically disadvantaged, I would suggest that you wannabe elitists slow down with your wishes of higher prices and conservation. Some people still HAVE to drive to work.
Submitted by: Robert
7. >I can only assume you don't have a very clear memory of what 1999 was like. Do you remember the World Wide Web of 1999, where it took five minutes to download a family photo? There was no Wikipedia, Netflix was brand new, there was no such thing as buying an MP3 download -- followed by additional blather on all the stuff we did not have. But food is more expensive in real terms, so is transport and energy in general - utilities, heating you name it. So is medical care. And you think ipods and mp3s make up for this?
Submitted by: Gar Lipow
8. You could both use an economics lesson! The reason supply has kept up with demand is because prices have risen. The question you need to ask, but there is no way to answer, is what would have supply and demand been at 2005 prices. Please find an economist who can educate you!! There are plenty in California. If specualtive buyers have been right they will have decreased tomorrows prices but reducing todays demand and increasing tomorrows supply. If they are wrong, which is my opinion, they will be broke, or at least a lot poorer.
Submitted by: cynic
9. A bad stock market made the futures market look attractive. Too, you can buy into the futures market by putting down much less cash (called margins.) . The real issue seems to be the cost of so called "Sweet Crude." Unfortunately, production has not kept up with demand. In short - not everyone has it. I think futures speculators should have to put more money down to buy contracts for futures with margins that are at least comparable to the US stock markets. Ron
Submitted by: Ron
10. It’s Republican deregulation, ie the big rip off. Then the crash. Telecom (MCI, Worldcom). Energy (Enron, Arthur Anderson). Housing (Countrywide, Freddie mac & Fannie Mae) and now investing (Bear Sterns and more!). Republicans talk a good game of deregulation and free markets, but it's just code for rip off the poor saps who buy their BS. Oil prices are the result of fund investor on commission. No one cares because those 'in the know' are billionaires with no financial, family or patriotic ties to our country. They've become 'international wealthy'
Submitted by: Lisa in Texas
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