Posted on 06/28/2008 11:18:13 AM PDT by HawaiianGecko
It won't cross my eyes. I know speculation is actually helpful to the economy, at least in the long run, but at $4 dollars a gallon, I have little sympathy for these people right now.
However, I suspect CALPERS and the other funds will be able to cover their long positions on oil for some time to come, thanks to OPEC, Hairy Reed, Nancy Peloozer, the envirowhackos, and so on.
Rush argues the utility of textbook speculation and speculators are blameless -- they are just doing what a good businessman does.
So who's lying? (spinning, if you wish) And why?
So how does hedging against the dollar affect oil price?
I just heard (a delayed) broadcast of Roger Hedgecock who had a caller with the experience to answer the question -- which the caller did but Hedgecock had no idea of what "bid up" means and terminated the call because "the caller wouldn't answer the question."
My pixels ain't too bright here but basically I believe that means there are more buyers than sellers and the buyers are desperate to hedge against the dollar and also do something with their billions now that real estate (yesterday's bubble) crashed.
So what's wrong with "Oil prices are rising along with a host of commodities that are enticing speculators seeking hedges against a weakening dollar" -- and lots of competition to buy that hedge?
Prove to me that there is an oil shortage. Look at global supply and demand numbers. It just isn’t there.
Precisely.
Agreed.
The problem isn't with "speculators" per se, but with "trackers," a relatively new entity in the commodities markets.
A story about trackers: Remember that trackers track losses too
They are now essentially a bet on the volatile oil price — and that’s before you factor in any energy funds the industry has persuaded us to buy in the past few years.
It’s horribly reminiscent of the tech bubble. Then, trackers bought into the high-tech and telecoms sector as it soared to nearly 35% of the FTSE All-Share in March 2000, just after Vodafone’s takeover of Mannesmann. This compares with the 31% of the All-Share in resources, according to Credit Suisse.
The markets will adjust to them, eventually, but it is going to be painful for everyone else until that happens.
He extended it until 2012.
Actually President Bush has brought drilling bills up 3 times, but no sense letting the truth getting in the way of a mediocre Bush Bash.
Pray for W and Our Troops
I've spent the last 20 years studying how markets work. I know as much about how new information is priced into markets as anyone alive. And I can tell you that the things you're saying don't make any sense. Institutional financial markets don't work the way you think. There isn't a big pile of cash sitting someplace with a bunch of people trying to figure out what to do with it. It just isn't so. Leverage does not work that way.
The oil markets are going up because our current energy policy (and to a lesser degree that of the European union) is absolutely idiotic. Gas prices are rising because the people making policy decisions want them to. If you are looking for a scapegoat blame them.
You're just spouting some "cute sounding" populist theory that's actually dead wrong.
President Bush has also said that he will not repeal the executive order until Congress repeals the legislative moratorium. Telling the TRUTH about what he said is not a “mediocre Bush bash.”
No, the Gecko is always right. Speculators are a problem but congress can't do a darn thing
about 95% of them.
To: 4D-Joy; 60mm; AGreatPearl; cindyTrueSupportor; concreatebob; Discco Dave; Docter Raoul; ...
Every now and then I wonder how to get this much time on my hands.
Pulling some bill he signed in 1998 is hardly what he has pushed his entire Presidency. Your hatred of President Bush has clouded your judgement. How bout quoting something in the last 5 years?? You know that your twisting the truth as well as his current stand on this crisis.
This place used to have standards. To pretend GW is anti-drilling is nearly DU level.
Pray for W and Our Troops
:-)
Regardless, show me the oil shortage.
Here’s a quote from another “populist” rube who knows nothing about markets:
http://www.winnipegfreepress.com/subscriber/business/local/story/4192068p-4782777c.html
“There is no justification for the price of oil,” he said. “A bubble takes on a life of its own. I have no idea when it will pop but it will pop just like the markets for high tech, housing and exotic financial instruments.” —Steve Forbes
China and India are both on track to be much larger consumers of oil in the near future and the participants in the energy markets are simply reacting to that. Global demand growth is VASTLY outpacing supply growth and until the western world gets it's head out of it's nether regions with regard to energy policy it's going to stay that way.
So long as congress means "windmills and solar panels" when they talk about energy, the price of oil will continue to be high.
Who did the Bill O’Reilly post?
“whatever” shows up for the Freep date. LOL.
He’s not a rube, he’s just wrong. And when it comes to market bubbles he doesn’t know what he’s talking about.
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