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There are congressmen pushing to have oil speculation either monitored, or stopped all together by using the Dodd Frank rules for wall street regulation to monitor this activity.
Everytime there is a hickup in the middle east, oil pices shoot up. Hurricane, shoot up, etc.
None of these actually have an actual effect on oil supplies in most cases. How many times has your local gas station said "Oh, sorry, we are out of fuel because Iran saber rattled yesterday"?
Doesn't happen.
Is oil speculation needless profiteering, or is it a needed market self regulatory effort?
I'm not sure that Dodd Frank should be used for this, or if it can be, but it seems to me like oil speculation is a large part of our fuel prices, and they don't really seem to actually represent a real world supply change.
"No the market decides everything. Even if the market is 90% owned by the .6% the market is sacred and can never be wrong. All hail the hedge fund managers"
You are right it is BS and quite probably rigged for the big boys but you really cant stop it.
You can make it NOT qualify for the cap gains rate in various funds that make the transactions qualify for that rate.
Location: Democratic Peoples Republic of Redneckistan
11,078 posts, read 15,084,813 times
Reputation: 3937
Quote:
Originally Posted by Memphis1979
There are congressmen pushing to have oil speculation either monitored, or stopped all together by using the Dodd Frank rules for wall street regulation to monitor this activity.
Everytime there is a hickup in the middle east, oil pices shoot up. Hurricane, shoot up, etc.
None of these actually have an actual effect on oil supplies in most cases. How many times has your local gas station said "Oh, sorry, we are out of fuel because Iran saber rattled yesterday"?
Doesn't happen.
Is oil speculation needless profiteering, or is it a needed market self regulatory effort?
I'm not sure that Dodd Frank should be used for this, or if it can be, but it seems to me like oil speculation is a large part of our fuel prices, and they don't really seem to actually represent a real world supply change.
Your thoughts?
End it now is my vote...speculators are an absolute drain on the world...no redeeming qualities at all.
I would like to see an absolutely open market on oil exploration, drilling and pumping to whoever wants to buy. A market with out any controls by the existing oil companies or their client countries. Only then would we see what the real market price for crude would be. I think it would be a lot lower than under the current oligiopoly.
Location: Democratic Peoples Republic of Redneckistan
11,078 posts, read 15,084,813 times
Reputation: 3937
Quote:
Originally Posted by GregW
I would like to see an absolutely open market on oil exploration, drilling and pumping to whoever wants to buy. A market with out any controls by the existing oil companies or their client countries. Only then would we see what the real market price for crude would be. I think it would be a lot lower than under the current oligiopoly.
I agree...let the real market rule and cut out the subsidies to big oil while we're at it.
"No the market decides everything. Even if the market is 90% owned by the .6% the market is sacred and can never be wrong. All hail the hedge fund managers"
You are right it is BS and quite probably rigged for the big boys but you really cant stop it.
You can make it NOT qualify for the cap gains rate in various funds that make the transactions qualify for that rate.
Jimmy Carter tried this BS with price controls on gasoline.
It worked great, prices stabilized but the only thing is you couldn't buy gasoline to buy.
Price controls haven't worked from the time of the Roman Emperor Diocletian.
Stopping speculation is a great on-paper concept. I have a hard time having a strong opinion on it only because it's unworkable in the real world.
I personally think that the politicians are just looking to pass *something* for PR purposes.
Does anyone other than me remember the congressional dog and pony show with the oil execs and the "take those record profits" claims? Just pure political grandstanding.
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