Thank you once again Congress.... (Full Version)

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gonefishin -> Thank you once again Congress.... (9/12/2008 12:40:10 PM)

....for your role in this year's oil fiasco.   If they would just put mirrors on the walls of Congress, the villains would be much easier to find. 

http://www.ibdeditorial.com/IBDArticles.aspx?id=306024468188608



LDD -> RE: Thank you once again Congress.... (9/12/2008 2:11:10 PM)

Well, that's one opinion and you know what they say about opionions, they're like...well...nevermind.




tippy-toe -> RE: Thank you once again Congress.... (9/12/2008 8:29:00 PM)

mirrors??? I thought blood suckers didn't cast a reflection...[;)]



gonefishin -> RE: Thank you once again Congress.... (9/13/2008 8:47:21 AM)

Hilarious Mr. Toe.   Yes, they are mainly useless lawyers occupying those halls.  



dano -> RE: Thank you once again Congress.... (9/13/2008 9:01:17 AM)

"Well, it turns out that speculators are not only blameless in running up prices, but they deserve credit for keeping the market liquid during a time of high volatility."


That's a bunch of BS right there. Blameless?? Not entirely.
We're seeing now just how much of an impact speculation has in oil prices.
Demand has dropped slightly in the US and global supply has increased slightly. That does not equate to a 20-30% drop in price.
It not just traditional commodity speculation but the number of new speculators in the market. Hedge funds OK, but pension funds, money funds and institutional invest funds are all new players that were able to get in through a loophole brought to you by the... "Investment Banking Institution."
(Banks are at it again) Suprised??
So, a lot of new players came in to make a quick buck. Someones going to lose a lot of money.
I think congress got it right this time.



DanesDad -> RE: Thank you once again Congress.... (9/13/2008 3:21:19 PM)

What I want to know is, how come when a barrel increases five dollars, the price of gasoline goes up a dime the next day, but when the price of a barrel drops thirty percent, gasoline only decreases 10% ?   WTF?



bingsbaits -> RE: Thank you once again Congress.... (9/13/2008 4:00:22 PM)

I see Opec didn't like the falling prices and cut production by 500,000 barrels a day...



waDerboy -> RE: Thank you once again Congress.... (9/14/2008 4:36:44 AM)

What that report seems to say is that the long position of traders dropped by 11% during the price run up.
That is people that didn't believe in prices increasing over the long run.
Could that have been because they knew they were creating a bubble that could not last and were hedging their profits so as not to take a hit when it popped?

It also says that oil futures rose 30% during the runup but was mostly due to the price of oil rising 46%.
What it doesn't say is what caused that runup. Speculators?

In the end what it says is that they didn't have enough info to make a judgement on how much speculaion played.
It did NOT say that speculators were not the problem only that they didn't have info to prove it one way or the other.



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