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To: ncfool
I disagree with the premise here, which is more regulation. First, speculators do serve a function and they do temper wild swings in prices, even oil. Second, any attempt to regulate speculators here will simply send those transactions to some other market (perhaps outside the US) where the regulations don't apply. Third, there are enough regulations in place now to prevent speculative abuse. Fourth, some companies (e.g., airlines, bus lines, and other large distillate fuel users) speculate in order to set long run budget targets. And fifth, I just don't want gov't involved in any market more than it already is.

I know that speculators compounded the problem recently, but how much of the run up was due to increased demand, how much due to supply bottlenecks, and how much was due to speculators? I have no idea, but my guess is all three played some role in the price adjustment. If you want to punish speculators, let the market do it. How many do you think took it in the shorts when the price dropped recently? Anyway, I think this is a bad idea.

21 posted on 07/30/2008 2:46:09 PM PDT by econjack (Some people are as dumb as soup.)
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To: econjack

Good post........


42 posted on 07/30/2008 3:09:54 PM PDT by Osage Orange (Congress would steal the nickels off a dead man's eye's...............)
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