Bernie Sanders Demands Action From Obama On Wall Street Oil 'Gambling'

Discussion in 'Congress' started by hvactec, May 1, 2011.

  1. hvactec
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    hvactec VIP Member

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    Sen. Bernie Sanders (I-Vt.) demanded on Thursday that regulators impose limits on oil speculation to help lower the price of gas in a letter sent to President Obama.

    “There is mounting evidence that the skyrocketing price of gas and oil has nothing to do with the fundamentals of supply and demand, and has everything to do with Wall Street firms that are artificially jacking up the price of oil in the energy futures markets,” Sanders wrote. “In other words, the same Wall Street speculators that caused the worst financial crisis since the 1930s through their greed, recklessness, and illegal behavior are ripping off the American people again by gambling that the price of oil and gas will continue to go up.”

    Last year’s financial reform bill required the Commodities Futures Trading Commission to crack down on commodities speculation by imposing “position limits” -- a cap on the size of the bets that Wall Street traders can place. The agency was required to apply the new rules by January 22, but the CFTC has delayed the rules in order to collect data.

    “What is particularly offensive is that this could and should have been prevented under current law,” Sanders wrote.

    While at least part of the recent spike in oil prices is likely the result of unrest in the Middle East, the heavy volume of Wall Street speculation may be exaggerating the rise, if not driving it outright. The number of speculative bets on food and energy today is even higher than in 2008, when oil reached its highest price ever, sparking food riots across the globe. CFTC Commissioner Bart Chilton has been pushing to implement position limits soon, citing heated speculation and a March 21 research note from Goldman Sachs analyst David Greely that claimed Wall Street gambling in the futures markets is in fact driving up oil prices.

    Obama announced a new inter-agency working group to combat fraud in the oil markets on April 21, but some economists and experts believe the effort will have a very limited impact on gas prices. Commodities speculation is perfectly legal, and traders do not have to break the law in order to drive up prices.
    Full Story Bernie Sanders Demands Action From Obama On Wall Street Oil 'Gambling'
     
  2. The T
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    The T George S. Patton Party Supporting Member

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    Obama has already addressed this issue...No drilling. Moratorium that he continues to be defiant on as a court has told him a couple of times he was outta line on...
     
  3. OohPooPahDoo
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    OohPooPahDoo Gold Member

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    Feds approve deepwater drilling permit for new area in the Gulf | NOLA.com
     
  4. GHook93
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    GHook93 Aristotle

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    Here is another suggestion Comrade Sanders, allow us to drill!!! In the words of GoCain, "If we opened up our reserves, the largest in the world, and started drill domestically, then the speculators would stop speculating up and would start speculating down!"
     
  5. thereisnospoon
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    thereisnospoon Gold Member

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    Really? What about the other 30 plus rigs Obama has summarily shut down?
    What a bunch of bullshit. Thousands of people have lost their jobs either directly or indirectly as a result of Obama's shut down.
    Obama sees his mistake. He is too much of an egomaniac to admit he has erred in judgment.
     
  6. thereisnospoon
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    thereisnospoon Gold Member

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    Here's the deal.
    Yes there is speculation. Yes, there has been a significant increase in the amount of money in the oil and gasoline markets. By one estimate 300% more money is in the oil market than in 2006. As a matter of fact many hedge funds, mutual funds, ETF's and investment banks have moved their focus from currencies, metals and securities over to petroleum.
    One of the main reasons why we see such volatility in the market is the sheer amount of trades each day.
    Another factor is the falling value of the US Dollar. The prices of oil and gasoline are based on the US Dollar. The lower the USD value, the higher the price for these commodities.
    Already, traders are having to pay much larger margins for their purchase of futures contracts. In the past this has only temporarily slowed speculation.
    The bottom line is this, two things have to happen. The federal reserve MUST stop printing fake money. And Obama MUST lift the drilling ban.
     
  7. CrusaderFrank
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    CrusaderFrank Diamond Member

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    "Somehow we have to figure out how to boost the price of gasoline to the levels in Europe..." Obama's Energy Secretary

    No, that's not a joke
     
  8. initforme
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    initforme VIP Member

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    If we had 10,000 rigs drilling wall street and the speculators would still have the price up there. Do you think big oil is interested in dropping prices? Are the speculators who rip us off interested in dropping prices? Heck no. Also, I say stick it to BP. They got off the hook without basically paying any fines. Make em write checks until their hands bleed. They are a bad company.
     
  9. idb
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    idb Gold Member

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    The facts say otherwise.
     
  10. Brutus
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    Brutus Senior Member

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    Of course Bernie is an admitted socialist so won't understand a single thing, let alone free markets.

    In short, for every speculator buying in hopes that prices will go up there must be one selling in hopes that the price will go down!
     

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