Ping!
Hmmmmm.
They’ve been blaming commodities speculators for excessively high crude prices.
Is this necessarily a bad thing?
Goldman Sachs has been consistenly bullish on oil this year, and Lehman has been bearish, at least in their published commentary. I work in finance and have access to the institutional web sites of both firms. Here is the beginning of a report from the Lehman site:
At what cost?
Sep 12, 2008
Beginning in the fall of 2007, oil prices began overshooting beyond the levels predicted by fundamental cost indicators. Despite the recent drop in oil prices and substantial cost inflation, our analysis still indicates deferred prices should be in double digits, suggesting room for further declines in the price of oil.
Lehman’s proprietary traders do not necessarily have positions corresponding to the “house view”. That said, I’d expect the demise of a firm that is bearish on oil to be marginally bullish for oil futures.
Cash? Don't they mean worthless fiat paper?
I remember earlier this decade, during the stock market crash, being told how only tangible things had value.
It’s not so much fun when you’re playing with your own money, is it?.............
I’m not savvy in financial affairs, but isn’t it this Commodities market and trading in it’s futures where people have lost their shirt? Sort of like legal gambling? Betting on corn or wheat or soybeans or pork prices?
So what if oil drops to $10 gallon. If I'm still paying $3 a gal for gas, who cares. I know about refining; but my point about the “price” of oil stands.
Base metals can fall to pennies. But I'm still paying a fortune for metal posts and copper.
Food commodities can free fall. I still see bread, meat, chicken, milk, etc at high prices.
Theater for the masses and financial wizards/titans?
I can't buy silver anywhere near the “spot commodity” price. Games; but what can you do?