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To: Toddsterpatriot
Well I suggested an article by Ed. Wallace in BusinessWeek, he ahs better details, but the number is billions in loans over night loans. According to Bloomberg they used 30 billion in 28 days in January.

The price of oil and gasoline is not now based upon supply and demand it is driven by speculation. For the past 2 years our oil imports and gasoline usage has dropped by 20% but today the price of gasoline is $1.00 higher than a year ago.

85 posted on 03/31/2010 7:24:39 PM PDT by q_an_a
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To: q_an_a
Well I suggested an article by Ed. Wallace in BusinessWeek

I didn't see anything recent. You have a link?

but the number is billions in loans over night loans

Less than $11 billion. Hardly big bucks.

And your claim, "They can drive the futures of oil, which is no gamble to new highs, sell and with no risk they pay back their laons to the Fed"

Is just silly.

The price of oil and gasoline is not now based upon supply and demand it is driven by speculation.

When Southwest Airlines buys oil futures, is that demand or speculation?

When I buy an oil contract, why isn't that demand?

For the past 2 years our oil imports and gasoline usage has dropped by 20% but today the price of gasoline is $1.00 higher than a year ago.

And it's $1.00 lower than it was 18 months ago.

86 posted on 03/31/2010 7:34:07 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: q_an_a; SAJ
"...price of oil and gasoline is not now based upon supply and demand it is driven by speculation..."

That's what the article said and lots of people feel that way --that the futures speculators are wrong about where prices are going.  If you know you're right then you can step up and restore sanity, and get rich doing it. 

You can correct prices that you consider foolish by making your own market offers.  I did it a few years ago --I bought oil companies and refineries during a price jump and as it peaked I made a bundle.   I'm not in right now though, imho these days it's the futures traders who're right and it's the pundits who're full of it, but hey go for it and let us know how it works out.

92 posted on 04/01/2010 10:25:20 AM PDT by expat_panama
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