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Old 06-16-2011, 09:22 PM
 
Location: The Brightest City On Earth
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A bill has been introduced to regulate oil market speculation. Others say it should be outlawed completely and that oil should be considered a "national commodity not subject to futures trading"
What do you think? I am torn myself. This goes against my free market leanings but on the other hand oil is a unique product that has huge effects on the country and its economy and perhaps needs more regulation than- let's say pork bellies or wheat.
If the price of a food gets too high, I have the option of eating less of it and switching to something else. With gasoline, I have no alternatives. Even if it is $10 a gallon, I have to have it because I have to drive. There are no alternatives.
Release: Sanders Introduces Oil Price Speculation Bill - Newsroom: U.S. Senator Bernie Sanders (Vermont)
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Old 06-17-2011, 03:57 AM
 
Location: Tampa (by way of Omaha)
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Looks good to me.
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Old 06-17-2011, 06:57 AM
 
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No we should not. Speculators lend stability to markets. It may spike prices for a while, but it can also depress prices. The Chicago Board of Trade was established to prevent drops in grain prices at harvest time. Of course speculators, who expect to get rich, support it. I suspect a few speculators got ruined last month when oil prices dropped, but that is the risk they take.
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Old 06-17-2011, 07:12 AM
 
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I can see setting different rules for it in order to stabilize it. Not outlawing it completely, no way that's gonna happen.
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Old 06-17-2011, 08:10 AM
 
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They actually did the same thing to onions (I'm pretty certain its onions or some other crop) back in the 1950's and the price went up.

How we try to give some real value to the dollar instead of trying to make everything illegal because someone thought they figured out another way. Many are putting their money in commodities because they don't trust the value of fiat currency.
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Old 06-17-2011, 08:25 AM
 
Location: Bothell, Washington
2,800 posts, read 5,005,714 times
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Quote:
Originally Posted by pvande55 View Post
No we should not. Speculators lend stability to markets. It may spike prices for a while, but it can also depress prices. The Chicago Board of Trade was established to prevent drops in grain prices at harvest time. Of course speculators, who expect to get rich, support it. I suspect a few speculators got ruined last month when oil prices dropped, but that is the risk they take.
Actually oil speculation WAS regulated up until around 2001- where it was required that people buying oil futures actually take delivery of that oil. This cut all the scum out of the market who are simply buying paper and artificially inflating prices as we have seen for the last few months. Prices were very stable back when this was in place, I say we go back to that regulation that is already proven to have worked!
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Old 06-17-2011, 08:58 AM
 
Location: Tampa (by way of Omaha)
14,168 posts, read 20,433,798 times
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Quote:
Originally Posted by jm31828 View Post
Actually oil speculation WAS regulated up until around 2001- where it was required that people buying oil futures actually take delivery of that oil. This cut all the scum out of the market who are simply buying paper and artificially inflating prices as we have seen for the last few months. Prices were very stable back when this was in place, I say we go back to that regulation that is already proven to have worked!
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Old 06-17-2011, 09:08 AM
 
Location: NJ
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we should also outlaw OPEC.
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Old 06-17-2011, 09:14 AM
 
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NJ
We import most of our oil from Canada and Mexico.Are they members of OPEC?
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Old 06-17-2011, 09:22 AM
 
Location: NJ
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Originally Posted by stevej64 View Post
NJ
We import most of our oil from Canada and Mexico.Are they members of OPEC?
i see you think you have come up with some brilliant point. am i supposed to explain to you why that doesnt make a difference?

ill just give a small example. libya doesnt export a lot of oil to the US, yet if oil is shut down in Libya, we still pay a disproportionate amount more at the pump. its like magic isnt it stevey?
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