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Now that the cost of oil is moderate, is now the time to do something about oil speculators in anticipation of an eventual economic recovery? What can be done considering oil is traded all over the world?
I suggest you buy oil futures so you can profit from this trading......
The recession ended June 2009 and the economy is humming along.
Don't you believe your government and your President when they told you that ?
no, the decline ended in March 2009 and the climb out of the huge hole Bush created began in middle 2009. Remember the talk of double dips? The markets lost over 40% of the market cap, it will take some time to correct Bush's mess. blaming obama for the mess is like blaming the mechanic that is fixing you car because you drove it without oil, and as he works you bagered him and stood in his way every time he tried to do something...
everyone of you guys speculating on oil futures should be forced to take delivery a couple of times, that would cure you. If you aren't a consumer of crude oil you should be buy crude oil....
Before Bush, oil speculators had to take delivery. Now, its a stock. If I would have had $5000 to invest in oil back when it was $33/barrel I would almost have $20,000 today. Now people who put hundreds of thousands or millions in back then are living lavishly now. Thing is, this type of trading should not be done with a commodity such as oil that is so essential to our economic growth. Nothing will ever be done about it though because of the huge amount of money pouring into Washington to preserve the Bush policy.
There is way too many people whining about gas prices. I for one am hoping that gas prices go even higher. Higher prices for fuel are the best tool to force the entire economy to become more efficient and productive and that ultimately makes us all wealthier in the long term.
There is way too many people whining about gas prices. I for one am hoping that gas prices go even higher. Higher prices for fuel are the best tool to force the entire economy to become more efficient and productive and that ultimately makes us all wealthier in the long term.
Still looking for greedy white males upon whom to blame the effects of tree hugger policies like cap and trade?
Maybe next time we should develop our own energy. You know, we could drill off shore and in ANWAR, develop domestic natural gas, build new nuclear plants, coal, synfuel, etc.
the greedy white males are associated with the commodity traders, not tree huggers. the tree huggers are the good guys.
For oil speculators, the economy is great right now. They are bathing in OUR money.
For the rest of us, just when we thought there was a glimmer of hope for the economy it keeps getting worse and worse. Don't worry, the truth will be widely known by the end of this year and the government will have to admit we are in a depression.
Here are some of my predictions, call me out on them if they are wrong at the end of the year.
-Oil will spike above $147/barrel sometime this year. This is likely anytime between Easter and July 4th. Speculators will try to push it to $200 but, barring something unforeseen such as revolution in Saudi Arabia, speculation alone will not be able to sustain those prices, and serious demand destruction will set in before they are able to get it there. Oil will be well below $100/barrel by the end of the year, possibly as low as $50.
-The Dow will have some wild swings going into the summer months. It won't make it to 13,000. When the SHTF it will crash fast, going well below 10,000 and possibly testing the March 2009 lows. I still do not think the Dow has seen its bottom.
-There will be a large bank failure going into late summer that will make Lehman look like cake. The government, due to its debt situation, will not be able to provide the funds for a bailout. This will be the catalyst that will start the collapse.
-GDP will head back into negative territory in Q3 and Q4. Wouldn't be surprised to see double digit losses in Q4 going into 2012
-The Christmas shopping season will be the worst on record. Many long-standing retailers will declare bankruptcy and shutter in late 2011-early 2012.
-U3 unemployment will go back above 10% by the end of the year, hitting as high as 15% in 2012, with U6 testing Great Depression levels
With the fed out of ammunition, I don't see anything that can be done to combat the coming collapse. The market MUST be allowed to correct itself. There is no other option, period. Its going to be extremely painful, but the longer Bernanke kicks the can down the road, the worse its going to get.
You can always tell who trades, and who dont, simply by the stupid stuff people say..
Just to be clear, oil speculators DO NOT push the price of gas up or down..
For every person betting oil will climb, there is another person betting it wont.. ITS A REVENUE NEUTRAL TRANSACTION.. One wins, one loses.. that has NO effect on the price of gas..
not entirely true, like with any commodity, oil futures are largely governed by supply and demand. If people think the demand for oil will be greater than the supply oil the price of futures will rise in price. speculators will jump in to profit from a rise, more money chasing the same finite supply of futures. current events only act to drive the "speculation" that demand and supply will change over time. nothing really change, only people perception that things will change. it is the speculation, the crystal ball gazing, that drive the swing in crude oil prices.
Quote:
Originally Posted by pghguest
You can always tell who trades, and who don't, simply by the stupid stuff people say..
Just to be clear, oil speculators DO NOT push the price of gas up or down..
For every person betting oil will climb, there is another person betting it wont.. ITS A REVENUE NEUTRAL TRANSACTION.. One wins, one loses.. that has NO effect on the price of gas..
you "speculators have lost sight of reality, I guess allowing you to speculate on anything and everything has lead to it, now you can even "speculate" on the volatility, VIX's, of the markets, really???
Last edited by buzzards27; 04-11-2011 at 08:04 AM..
There is way too many people whining about gas prices. I for one am hoping that gas prices go even higher. Higher prices for fuel are the best tool to force the entire economy to become more efficient and productive and that ultimately makes us all wealthier in the long term.
Really, why would you want that? The last time gas reach $4, the economy crashed only a few months later and put us into a severe recession that is still going on today.
Many families are currently struggling financially, trying to raise their children, pay a mortgage, pay off debt, etc. Higher gas and oil prices will lead to higher food prices, payments for electricity and water would increase significantly as well as the cost of flying, using a taxi, subway, buying a car and that will lead to even more burdens.
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