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And yeah, those guys who make a living.....well, they value their jobs. And the money they make gets spread around......you know....capitalism and stuff.
You've got to be kidding.
If statistics have proven anything in the last two decades it's that the money does not get spread around, it gets hoarded at the top.
When it does get spread around, it gets spread around to politicians, perverting the democratic process and to "investments" in housing, commodities, derivatives and various bastardized instruments that wreak havoc on the markets and society.
You are ignoring the fact that government is already out of the way.
The reason that oil prices are high is precisely because market forces -- the ability for Wall St., with near unlimited money can bid up the price of futures contracts.
Let me explain how this works. Instead of oil, I'll use wheat in the example.
Let's assume that you are a baker and Hilton Hotels approaches you to supply it with loafs of bread. Hilton wants to issue a three year contract at one price/loaf.
You know that the price of wheat fluctuates and if you contract at one price and wheat rises in price, you'll lose money. So, what do you do?
You buy futures contracts now, for each month during the term of the contract -- locking in a known price.
Essentially, you are transferring risk, that you don't want, to speculators, that accept this risk who also expect to make a high return should wheat fall in price.
But what happens if the Wall Street speculators, prior the baker buying his contracts, bid up wheat to twice the previous price? Well, the baker pays more for wheat and Hilton pays more for bread.
Later in time, speculators stop going long, the price of wheat falls and the speculator makes a lot of money delivering to the baker wheat bought on the spot market at half the price the baker paid for his futures contract.
That's exactly how Wall St. makes money manipulating oil futures. They drive up the price, then let it fall, pocketing the difference.
Let's remember that oil production is up 11% and demand is down, yet prices are up.
If one noticed, oil dropped dramatically today, confirming what I said above.
If oil had gone up today, you would have said that also confirmed what you said. The fact is, YOU ARE WRONG..
Oil "speculators" pay today, for barrel of oil tomorrow. For every person buying, there is a person selling. The net effect on the price of oil is ZERO..
Its no different than buying an option on a stock. If your option is at $10.00, that option does NOT influence the price of the underlying stock. Some people make money from that option, but for every person making money, there is an individual losing.
If the price dropped today, it means people lost money, and others made money.. It did not confirm your bs that its manipulated
If oil had gone up today, you would have said that also confirmed what you said. The fact is, YOU ARE WRONG..
Oil "speculators" pay today, for barrel of oil tomorrow. For every person buying, there is a person selling. The net effect on the price of oil is ZERO..
What you choose to ignore is what I previously stated. Money is being transferred to the speculator -- just as the baker pays a high price for the wheat contract bid up by speculation.
If statistics have proven anything in the last two decades it's that the money does not get spread around, it gets hoarded at the top.
When it does get spread around, it gets spread around to politicians, perverting the democratic process and to "investments" in housing, commodities, derivatives and various bastardized instruments that wreak havoc on the markets and society.
Well, you have to reply to my first point.....please???????????? There would be a quick response if Big Brother reigned in Wall Street speculators with over strict rules.................they would go elsewhere..............meaning out of the USA. It would basically do nothing to slow down speculation on anything.
What I mean by spreading money around is, these guys employed in the speculation business buy goods and services, they also have a lot of support people at their job (janitors, technicians, programmers, etc, etc). You rather they be out of a job and all of the money they spend be decreased dramatically.......having many collateral effects??????????????? NICE!!!!!
What you choose to ignore is what I previously stated. Money is being transferred to the speculator -- just as the baker pays a high price for the wheat contract bid up by speculation.
Actually you have it backwards.. Money is transferred FROM the speculators..
At least President Obama has kept one of his campaign promises. He should take credit for higher gasoline prices.
Got any data (or a theory) on how Obama is to blame?
Quote:
Originally Posted by workingclasshero
1. you are not even close...in fact you are wrong
2. you seem to want to blame "wall street "(america) for WORLD WIDE COMMODITIES
Wall Street in not "America". America is its milk cow. It may even despise America after it runs dry...
Quote:
Originally Posted by workingclasshero
unfortunatly sanders like most socialist liberals only speak with forked tongue
1. the spectlators are not wall street..but WORLD WIDE
2. why go after one group of goods spectators....sugar, coffee, cotton has increase MORE than oil...but then again the fascist liberals always have to have some boogieman to hunt(ie the rich)
Fascist liberals? The rich hurting and under attack? Where have we heard this before...
No difference between sugar, cotton, coffee, oil? Really...
Obama repeatedly stated during the campaign that 'Under my plan, energy prices would necessarily skyrocket'.
Toss in his Energy Secretary who really wants European-level gasoline prices ($8.00 a gallon in some places), and that should erase any doubt.
Sanders is wasting his time with such a ludicrous bill; Obama's nationwide lockdown of energy exploration, as well as being a fully-paid for slave of the greenies as reprehensibly as he is of trial lawyers and public employee unions is also another dead giveaway.
Obama repeatedly stated during the campaign that 'Under my plan, energy prices would necessarily skyrocket'.
Toss in his Energy Secretary who really wants European-level gasoline prices ($8.00 a gallon in some places), and that should erase any doubt.
Sanders is wasting his time with such a ludicrous bill; Obama's nationwide lockdown of energy exploration, as well as being a fully-paid for slave of the greenies as reprehensibly as he is of trial lawyers and public employee unions is also another dead giveaway.
* Aren't high gas prices and maximum profit for Big Oil precisely what conservatives want? Yet high prices will empower the "greenies"? You can't have it both ways. You want to hit that "sweet spot" just high enough to be painful for the lower classes, but low enough to curb demand for alternatives - thus Big Oil thrives...?
Obama energy decision clears way for Va. offshore drilling | William C. Flook | Nation | Washington Examiner (http://washingtonexaminer.com/news/nation/obama-energy-decision-clears-way-va-offshore-drilling - broken link)
* Why do you separate out "public employee" unions? What about other unions? You don't despise both?
* You don't like trial lawyers? Corporations rely on them!
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