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2008-05-30 Home Front: Politix

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Posted by gorb 2008-05-30 03:17|| || Front Page|| [11127 views ] Top

#1 Speculation has been cited as one on many factors contributing to surging petroleum prices, along with assumptions about new supplies, limited demand growth, possible supply disruptions overseas and the dollar's depressed value against other currencies.

I guess they hide overt acts and conspiracies to 'obstructing domestic energy extraction and development' under "new supplies".

Posted by Procopius2k 2008-05-30 11:03|| 2008-05-30 11:03|| Front Page Top

#2 Speculators provide important liquidity to markets. Perhaps you might want to consider that traders in the oil market can leverage on a 7% margin requirement versus 50% in stocks. Change this and the rules of the game might change.

Also think about all those tankers Iran has tied up storing oil they can't sell and preventing other oil from reaching the market.

Ultimately I've got a lot more confidence in the market resolving this problem than the government. It has a far more effective way of dealing with speculators.

This list of government actions does not lead me to believe government will do much to lower the cost of energy.

Posted by Nimble Spemble 2008-05-30 11:22|| 2008-05-30 11:22|| Front Page Top

#3 Ultimately I've got a lot more confidence in the market resolving this problem than the government. It has a far more effective way of dealing with speculators. There is no free market in oil, and there hasn't been one since the days of John D. Rockefeller. The "Panics" of the 19th and early 20th centuries were a very effective way of dealing with speculators and resolving such problems, but I really don't recommend them. The market in housing and credit in the USA has obviously failed, and some of the speculation in oil is a spillover from that crisis.

Posted by Anguper Hupomosing9418 2008-05-30 12:08|| 2008-05-30 12:08|| Front Page Top

#4 The market in housing and credit in the USA has obviously failed, and some of the speculation in oil is a spillover from that crisis.

Both of which were encouraged, enabled and exacerbated by government action.

Posted by Nimble Spemble 2008-05-30 12:43|| 2008-05-30 12:43|| Front Page Top

#5 The market is taking care of the housing problem right this very minute. I'm looking at 1 for a possible rental.

Posted by George Smiley 2008-05-30 17:55|| 2008-05-30 17:55|| Front Page Top

#6 Even OPEC thinks the natural price of oil should be about $65/bbl.

Not that I'm an expert, but I have a sneaking suspicion that OPEC might be beginning to get concerned about a possible technological breakthrough that could leave them eventually eating their oil. They may be greedy bastards, but they ain't stupid. They know that in the long run, $135 a barrel is their death warrant.

Mike

Posted by Mike Kozlowski 2008-05-30 19:18|| 2008-05-30 19:18|| Front Page Top

#7 If we're talking about the Pelosi/Reid government I'm sure it'll get straightened out. Heh heh.

Posted by Hellfish 2008-05-30 22:42|| 2008-05-30 22:42|| Front Page Top

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