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

[hvactec]

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'

 

[The T]

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...

 

[OohPooPahDoo]

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...

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

This marks the seventh deepwater drilling permit issued under the new regulatory system, put in place after last year's oil spill.

 

[GHook93]

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!"

 

[thereisnospoon]

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...

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

This marks the seventh deepwater drilling permit issued under the new regulatory system, put in place after last year's oil spill.

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.

 

[thereisnospoon]

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.

 

[CrusaderFrank]

"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

 

[initforme]

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.

 

[idb]

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...

The facts say otherwise.

 

[Brutus]

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.

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!

 

[thereisnospoon]

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.

Really? Hey genius, why don't you do some fact checking before you post.
Here. I will lead you to the water. Up to you to drink.
CNBC Mobile Home.....
Click "markets" then click "commodities"...Look at Crude Oil and look at RBOB Gasoline
Speculation, the value of the US Dollar, demand and inventories of oil and fuel are the main items which drive the price.
Oil companies do not "set" prices.

 

[thereisnospoon]

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...

The facts say otherwise.

Oh?..SO when are the 33 or so rigs Obama shut down going to start up again?
Obama will not allow the drilling moratorium to end because his ego tells him he is never wrong.

 

[idb]

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...

The facts say otherwise.

Oh?..SO when are the 33 or so rigs Obama shut down going to start up again?
Obama will not allow the drilling moratorium to end because his ego tells him he is never wrong.

http://www.nytimes.com/2011/05/15/us/politics/15address.html

In his weekly radio and Internet address, Mr. Obama said the administration would begin to hold annual auctions for oil and gas leases in the Alaska National Petroleum Reserve, a 23-million-acre tract on the North Slope of Alaska. The move comes after years of demands for the auctions by industry executives and Alaska’s two senators, Lisa Murkowski, a Republican, and Mark Begich, a Democrat.

The administration will also accelerate a review of the potential environmental impact of drilling off the southern and central Atlantic coast and will consider making some areas available for exploration. The move is a change from current policy, which puts the entire Atlantic Seaboard off limits to drilling until at least 2018.

The president also said he would extend leases already granted for drilling in the Arctic Ocean off Alaska and the Gulf of Mexico that had been frozen after the BP spill last year. The extension will allow companies time to meet new safety and environmental standards without having to worry about their leases expiring.

And the government will provide incentives for oil companies to more quickly exploit leases they already hold. Tens of millions of acres onshore and offshore are under lease but have not been developed.

Barack Obama moves to expand oil and gas drilling - Darren Goode - POLITICO.com

Obama is now looking to give a blanket extension to all oil-and-gas leases in the Gulf of Mexico due to the disruption caused by last year’s Gulf spill and subsequent administration ban and slowdown of drilling permits. By doing so, Obama is at least touching on an idea advocated by Republicans as part of a three-part offshore drilling package the House approved this month.

A senior administration official told reporters Friday that the administration also is looking to complete by the end of the year the first new lease sale in the gulf since the BP spill — and to have two combined sales finished in the western and central Gulf of Mexico by the middle of next year.


But in a move sure to rankle Republicans and some Democrats, Obama is continuing his push to add pressure on companies to use existing leases they own, considering a new “graduated fee” structure that essentially rewards those who act on their leases quickly, a senior administration official said.

 

[thereisnospoon]

The facts say otherwise.

Oh?..SO when are the 33 or so rigs Obama shut down going to start up again?
Obama will not allow the drilling moratorium to end because his ego tells him he is never wrong.

http://www.nytimes.com/2011/05/15/us/politics/15address.html

In his weekly radio and Internet address, Mr. Obama said the administration would begin to hold annual auctions for oil and gas leases in the Alaska National Petroleum Reserve, a 23-million-acre tract on the North Slope of Alaska. The move comes after years of demands for the auctions by industry executives and Alaska’s two senators, Lisa Murkowski, a Republican, and Mark Begich, a Democrat.

The administration will also accelerate a review of the potential environmental impact of drilling off the southern and central Atlantic coast and will consider making some areas available for exploration. The move is a change from current policy, which puts the entire Atlantic Seaboard off limits to drilling until at least 2018.

The president also said he would extend leases already granted for drilling in the Arctic Ocean off Alaska and the Gulf of Mexico that had been frozen after the BP spill last year. The extension will allow companies time to meet new safety and environmental standards without having to worry about their leases expiring.

And the government will provide incentives for oil companies to more quickly exploit leases they already hold. Tens of millions of acres onshore and offshore are under lease but have not been developed.

Barack Obama moves to expand oil and gas drilling - Darren Goode - POLITICO.com

Obama is now looking to give a blanket extension to all oil-and-gas leases in the Gulf of Mexico due to the disruption caused by last year’s Gulf spill and subsequent administration ban and slowdown of drilling permits. By doing so, Obama is at least touching on an idea advocated by Republicans as part of a three-part offshore drilling package the House approved this month.

A senior administration official told reporters Friday that the administration also is looking to complete by the end of the year the first new lease sale in the gulf since the BP spill — and to have two combined sales finished in the western and central Gulf of Mexico by the middle of next year.


But in a move sure to rankle Republicans and some Democrats, Obama is continuing his push to add pressure on companies to use existing leases they own, considering a new “graduated fee” structure that essentially rewards those who act on their leases quickly, a senior administration official said.

What a bunch of nonsense. Obama talks a good game.
Until those Gulf rigs are put back into service ANWR is opened to oil exploration and offshore moratoriums are lifted, it's all smoke and mirrors from Obama.

 

[idb]

Oh?..SO when are the 33 or so rigs Obama shut down going to start up again?
Obama will not allow the drilling moratorium to end because his ego tells him he is never wrong.

http://www.nytimes.com/2011/05/15/us/politics/15address.html


Barack Obama moves to expand oil and gas drilling - Darren Goode - POLITICO.com

Obama is now looking to give a blanket extension to all oil-and-gas leases in the Gulf of Mexico due to the disruption caused by last year’s Gulf spill and subsequent administration ban and slowdown of drilling permits. By doing so, Obama is at least touching on an idea advocated by Republicans as part of a three-part offshore drilling package the House approved this month.

A senior administration official told reporters Friday that the administration also is looking to complete by the end of the year the first new lease sale in the gulf since the BP spill — and to have two combined sales finished in the western and central Gulf of Mexico by the middle of next year.


But in a move sure to rankle Republicans and some Democrats, Obama is continuing his push to add pressure on companies to use existing leases they own, considering a new “graduated fee” structure that essentially rewards those who act on their leases quickly, a senior administration official said.

What a bunch of nonsense. Obama talks a good game.
Until those Gulf rigs are put back into service ANWR is opened to oil exploration and offshore moratoriums are lifted, it's all smoke and mirrors from Obama.

So it wasn't in you to reply something along the lines of;
"Oh, I never saw that, it's new.
Well I hope it isn't just a bunch of nonsense and the WH gets things moving."?

All you could come up with was;
"They're telling lies."?

I figured as much.

 

[thereisnospoon]

http://www.nytimes.com/2011/05/15/us/politics/15address.html


Barack Obama moves to expand oil and gas drilling - Darren Goode - POLITICO.com

What a bunch of nonsense. Obama talks a good game.
Until those Gulf rigs are put back into service ANWR is opened to oil exploration and offshore moratoriums are lifted, it's all smoke and mirrors from Obama.

So it wasn't in you to reply something along the lines of;
"Oh, I never saw that, it's new.
Well I hope it isn't just a bunch of nonsense and the WH gets things moving."?

All you could come up with was;
"They're telling lies."?

I figured as much.

I did not state nor imply anyone was lying. You stated that.
I will state this one more time for clarity...I want to see results. Not a bunch of "we are planning to". Or, "we will study..."....
The rigs in the Gulf need to be back up and running NOW....
Results. Not idle talk.

 

[midcan5]

More flat earthers, oil prices are determined in markets, global markets, we can ruin all of gawd's green earth and that ain't gonna change. Buy a Bicycle.

Tell the Washington Post that All Non-Flat Earthers Believe that Oil Prices Are Determined in a Global Market | Beat the Press

 

[editec]

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'

Putting a cap on how much people can bet won't work. The market would just work around that by some corporate machination hiding the specuator from view

TAX THE EVER LOVING CRAP out of pure speculation on commodities would likely end this kind of market though.

If you're not REAL buyer or a seller of the commodities, then you'd have to pay an enormous tax on the PURE speculation on commodities.

Byut here's why event that drastic solution would NOT work.

Take the potential profit out of pure specualtion and that futures market would simply migrate to another nation where is was still legal.

 

[CrusaderFrank]

More flat earthers, oil prices are determined in markets, global markets, we can ruin all of gawd's green earth and that ain't gonna change. Buy a Bicycle.

Tell the Washington Post that All Non-Flat Earthers Believe that Oil Prices Are Determined in a Global Market | Beat the Press

You should donate your head as a paper weight...today, you have no use for it.

Know what other commodities are determined in a global market?

Corn

Wheat

Soybeans

Tbonds

Gold

Pork Bellies

Cattle

Hogs....and so many others

Yes, you're still a fucking moron

 

[Two Thumbs]

Speculators, the liberal boogy man

How come no one has cared about them for decades but all of a sudden they are these shadowy evul conservatives that the pure hearted liberals need to stab in the heart?

Obama is a face plant failure and they NEED to deflect from that and increase the size of government control by regulating further.

Thus mounting evidence that the left does not care about the problem since the want to make it worse.