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

[FA_Q2]

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

Bingo. You cannot regulate that particular practice out of existence because it is traded at a global level. We are not the center of the earth though we would like to think so.

 

[Brutus]

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

Bingo. You cannot regulate that particular practice out of existence because it is traded at a global level. We are not the center of the earth though we would like to think so.

the very concept is absurd given that you can speculate on anything whose value you think is going up or down. Liberals simple lack the IQ to understand capitalism so look for silly reasons to explain obvious capitalistic things.

Lets look at recent development that make many think the price of oil may go up:

1) Japanese nuclear problem
2) unrest in middle East
3) BP spill
4) Obama shutting down exploration
5) Obams's desire to see prices as high as in Europe
6) huge new consumption in China & India
7) failure of electric cars
8) huge commodity inflation because central banks are printing too much money.

 

[boedicca]

Oil company profits on a gallon of gas are less than half the total taxes added by the Feds and State governments. How about having an investigation into the TAX BURDEN?

 

[ogibillm]

Oil company profits on a gallon of gas are less than half the total taxes added by the Feds and State governments. How about having an investigation into the TAX BURDEN?

bull.

maybe the profit on the end product but the oil companies are also making money on the production of the crude.

 

[thereisnospoon]

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

"Buy a bicycle"...Don't even go there, you phony hypocritical imp.
As a matter of fact, you can rid yourself of ever product made of synthetic fabric, plastic, paint, that keyboard where you type your liberal tripe...Get rid of it all. Because without oil, it doesn't exist.
I really find remarkable the amount of lip service you idiot lefties spew.
Liberalism: Do as I say. Not as I do.
Liberalism...riding the short bus to mediocrity.

 

[thereisnospoon]

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.

Without a market to trade someone or some controlling authority must be charged with the duty of fixing prices. Nixon and Carter used wage and price controls to fix prices.
The result was massive fuel shortages, gas lines and rampant stagflation.
It's really interesting how the anti market people are silent when prices fall. The lack of logic is distracting. For if it were not for those very same "speculators" buying "puts" on oil futures, prices would never fall.
The argument that if it were not for the traders running the price in the first place, does not wash.
BTW, but for the Obama administration's insane deficit spending it would not be necessary for the federal reserve to print fake money and drive down the value of the US Dollar.

 

[thereisnospoon]

Oil company profits on a gallon of gas are less than half the total taxes added by the Feds and State governments. How about having an investigation into the TAX BURDEN?

bull.

maybe the profit on the end product but the oil companies are also making money on the production of the crude.

Yeah, and?
When you go to work( assuming you do work) do you tell your boss, "look, I want to work here. However, I want you to pay me what it costs me to come to work. This way I don't make a profit on the labor I perform for the company"..
This "profit is evil" thing is just pure horse shit.
Hey sunshine, if you and you lib buddies got your wish and the federal government outlawed profit for the oil companies ,just who the fuck would bring the product to market?
The federal government? Those douche bags cannot deliver a letter and not lose money.
Listen here Maxine( we will socialize your industry) Watters, without the oil industry, you have nothing.
The number one reason businesses exist is to turn a profit for the owners and investors.
"Gee, let's start a business and see how much money we can lose. After all if we eschew profit, at least some people will like us. And that's really why we're in business. To make people like us."......
Oh sure

 

[ogibillm]

Oil company profits on a gallon of gas are less than half the total taxes added by the Feds and State governments. How about having an investigation into the TAX BURDEN?

bull.

maybe the profit on the end product but the oil companies are also making money on the production of the crude.

Yeah, and?
When you go to work( assuming you do work) do you tell your boss, "look, I want to work here. However, I want you to pay me what it costs me to come to work. This way I don't make a profit on the labor I perform for the company"..
This "profit is evil" thing is just pure horse shit.
Hey sunshine, if you and you lib buddies got your wish and the federal government outlawed profit for the oil companies ,just who the fuck would bring the product to market?
The federal government? Those douche bags cannot deliver a letter and not lose money.
Listen here Maxine( we will socialize your industry) Watters, without the oil industry, you have nothing.
The number one reason businesses exist is to turn a profit for the owners and investors.
"Gee, let's start a business and see how much money we can lose. After all if we eschew profit, at least some people will like us. And that's really why we're in business. To make people like us."......
Oh sure

you're making an awful lot of assumptions about me and my beliefs based on one comment where i called out a falsehood.

might want to look into that.

 

[OohPooPahDoo]

You'd think the shit tons of money that investors lost in the 2008 speculative bubble would be enough to keep them from doing it again.

 

[whitehall]

Sanders ought to do the right thing and challenge fellow socialist Barry Obama to a primary fight.

 

[Brutus]

You'd think the shit tons of money that investors lost in the 2008 speculative bubble would be enough to keep them from doing it again.

good point!!! of course no one is buying mortgage backed securities anymore, except for the few new ones that are really solid. And, there is no reason to assume more speculators are betting that the price will go up rather than down.

 

[Brutus]

Oil company profits on a gallon of gas are less than half the total taxes added by the Feds and State governments. How about having an investigation into the TAX BURDEN?

bull.

maybe the profit on the end product but the oil companies are also making money on the production of the crude.

of course that is utter nonsense. The major oil companies are verticially integrated. Like BP( Gulf spill) they explore, drill, refine, distribute, and sell retail. Their only soure of cash is retail and there they get a tiny profit margin, less than on a bottle of water or milk despite the huge costs compared to water or milk.

 

[thereisnospoon]

bull.

maybe the profit on the end product but the oil companies are also making money on the production of the crude.

Yeah, and?
When you go to work( assuming you do work) do you tell your boss, "look, I want to work here. However, I want you to pay me what it costs me to come to work. This way I don't make a profit on the labor I perform for the company"..
This "profit is evil" thing is just pure horse shit.
Hey sunshine, if you and you lib buddies got your wish and the federal government outlawed profit for the oil companies ,just who the fuck would bring the product to market?
The federal government? Those douche bags cannot deliver a letter and not lose money.
Listen here Maxine( we will socialize your industry) Watters, without the oil industry, you have nothing.
The number one reason businesses exist is to turn a profit for the owners and investors.
"Gee, let's start a business and see how much money we can lose. After all if we eschew profit, at least some people will like us. And that's really why we're in business. To make people like us."......
Oh sure

you're making an awful lot of assumptions about me and my beliefs based on one comment where i called out a falsehood.

might want to look into that.

THAT....is your rebuttal?.
You carp and moan about profits. That's enough for me.

You look into what you stated. I already did. Case closed.

 

[thereisnospoon]

Oil company profits on a gallon of gas are less than half the total taxes added by the Feds and State governments. How about having an investigation into the TAX BURDEN?

bull.

maybe the profit on the end product but the oil companies are also making money on the production of the crude.

Wrong..Production is cost. Companies look for ways to update and improve production processes to SAVE money. This improves the bottom line as the product is delivered to market and sold.
It is only at the sale level where profit is realized.

 

[Mr. H.]

Oil speculation. It's not just for Wall Street.

If you think you got the balls to make hole, then help yourself.

Don't have an extra 100 grand kicking around? Raise the funds.

Your chances of finding oil are 1 in 7.

Don't like the odds? Then fuck off.

Goddamn armchair pussy wannabies.

 

[OohPooPahDoo]

You'd think the shit tons of money that investors lost in the 2008 speculative bubble would be enough to keep them from doing it again.

good point!!! of course no one is buying mortgage backed securities anymore, except for the few new ones that are really solid. And, there is no reason to assume more speculators are betting that the price will go up rather than down.

WTF? I was talking about the oil bubble, not the housing bubble.

 

[OohPooPahDoo]

Oil speculation. It's not just for Wall Street.

If you think you got the balls to make hole, then help yourself.

Don't have an extra 100 grand kicking around? Raise the funds.

Your chances of finding oil are 1 in 7.

Don't like the odds? Then fuck off.

Goddamn armchair pussy wannabies.

Dude the issue here is speculation on oil futures, not oil exploration. When you go long on an oil future you don't have a 1 in 7 chance of getting oil, you've got 100% chance of getting it at the price and date specified in the contract.

 

[Mr. H.]

Would there be any oil futures without exploration?

That bread is buttered on the front side.

Futures are the carpet sweepings of the true risk takers.

 

[Mr. H.]

Dude.

 

[Mr. H.]

Armchair dude.