Damn Oil Speculators!

[starcraftzzz]

...etc etc etc

That's the part I'm worried about.

I didn’t narrow the list of options to the things I could list… 30 years ago no one (or very few) people thought about a cap-and-trade system. But I guess you link taxes and regulations preventing hoarding to shit like killing people

People are free to make purchases they hope will appreciate in value. There is zero reason for the government to interfere with that process.

So you are saying government has zero reason to prevent distortions in market prices, economic bubbles, and actions that result in people being pushed into poverty. Did you not consider those things or are you serious?

...government could do many different things such as limit speculation to activities that are actually beneficial

Who gets to determine that? Why don't you tell us what makes some speculation "beneficial" and other not.

History, evidence, research, logic… Some speculation such as hedging (IE insuring) is beneficial because in some markets there can be unexpected external factors that cause the price to plummet. So without this hedging/insuring many people will go bankrupt due to things they had no control in. Furthermore this insuring lessens the creation of bubbles because it evens out wild fluctuations that do not affect long term trends.
Some speculation is bad because it issimply mass purchases of an item so that one can hoard it; causing distortions in market prices in order to sell it off when there are inflated prices. This causes economic bubbles because it pushes up prices even though there is already adequate supply. Furthermore it also wastes money because you have buy storage for a bunch of goods that would otherwise not need stored. There are plenty examples of this happening such as Garlic in China.
Furthermore speculation is worsened if there is a group who has a monopoly or if there is a group rich enough to purchase a large market share of the goods (This is because a group that is very rich can purchase a vast majority of the goods, and hoard them) or if there are enough speculators (of which over 50% of oil purchases are via speculators)

 

[usmcstinger]

Speculators are to markets as stimulants and depressives are to human bodies.

They exacerbate the normal functioning of the system.

There is a very simply solution to end speculation...don't let people who are not either going to deliver or accept delivery of the commodities buy or sell those futures.

That would mean that if you're not IN that business, you cannot make bets on it.

Since you have not provided any reliable sources, your statement is nothing more than your uneducated opinion.

It is interesting that Obama Supporters, will believe anything he says. Evidently, they do not want to do any research on the subject or are incapable of doing it. Obama counts on you remaining ignorant.

 

[usmcstinger]

They exacerbate the normal functioning of the system.

If that we're true, why wouldn't those companies in the oil business simply ignore the speculator's bets and set their own prices?

Speculators help the market, that's why those in the oil business utilize their bets to plan, to set contracts for future delivery, etc. This helps to smooth the system, exacty the opposite of what you're suggesting. When many people put their capital on the line, the prices of those bets are excellent indicators of future supply and demand.

By your logic, I would have to be an electrician to speculate on the price of GE stock. How crazy you want to go with your meddling?

No some speculators help others do not.

Can you explain how some speculators help and how others don't?

 

[eflatminor]

...etc etc etc

That's the part I'm worried about.

I didn’t narrow the list of options to the things I could list… 30 years ago no one (or very few) people thought about a cap-and-trade system. But I guess you link taxes and regulations preventing hoarding to shit like killing people

So you are saying government has zero reason to prevent distortions in market prices, economic bubbles, and actions that result in people being pushed into poverty. Did you not consider those things or are you serious?

...government could do many different things such as limit speculation to activities that are actually beneficial

Who gets to determine that? Why don't you tell us what makes some speculation "beneficial" and other not.

History, evidence, research, logic… Some speculation such as hedging (IE insuring) is beneficial because in some markets there can be unexpected external factors that cause the price to plummet. So without this hedging/insuring many people will go bankrupt due to things they had no control in. Furthermore this insuring lessens the creation of bubbles because it evens out wild fluctuations that do not affect long term trends.
Some speculation is bad because it issimply mass purchases of an item so that one can hoard it; causing distortions in market prices in order to sell it off when there are inflated prices. This causes economic bubbles because it pushes up prices even though there is already adequate supply. Furthermore it also wastes money because you have buy storage for a bunch of goods that would otherwise not need stored. There are plenty examples of this happening such as Garlic in China.
Furthermore speculation is worsened if there is a group who has a monopoly or if there is a group rich enough to purchase a large market share of the goods (This is because a group that is very rich can purchase a vast majority of the goods, and hoard them) or if there are enough speculators (of which over 50% of oil purchases are via speculators)

Hopelessly ignorant. So many misstatements and flawed conclusions, I'm afraid you're beyond logic and reason.

Buying something in hopes that it might appreciate in value is evil...wow. And by the way, you're understanding of insurance vs. speculation is highly flawed.

If only YOU got to tell everyone else what to do, I'm sure we'd have paradise on earth...you keep believing that...

Rep power zero...I'm shocked

 

[starcraftzzz]

That's the part I'm worried about.

I didn’t narrow the list of options to the things I could list… 30 years ago no one (or very few) people thought about a cap-and-trade system. But I guess you link taxes and regulations preventing hoarding to shit like killing people

So you are saying government has zero reason to prevent distortions in market prices, economic bubbles, and actions that result in people being pushed into poverty. Did you not consider those things or are you serious?

Who gets to determine that? Why don't you tell us what makes some speculation "beneficial" and other not.

History, evidence, research, logic… Some speculation such as hedging (IE insuring) is beneficial because in some markets there can be unexpected external factors that cause the price to plummet. So without this hedging/insuring many people will go bankrupt due to things they had no control in. Furthermore this insuring lessens the creation of bubbles because it evens out wild fluctuations that do not affect long term trends.
Some speculation is bad because it issimply mass purchases of an item so that one can hoard it; causing distortions in market prices in order to sell it off when there are inflated prices. This causes economic bubbles because it pushes up prices even though there is already adequate supply. Furthermore it also wastes money because you have buy storage for a bunch of goods that would otherwise not need stored. There are plenty examples of this happening such as Garlic in China.
Furthermore speculation is worsened if there is a group who has a monopoly or if there is a group rich enough to purchase a large market share of the goods (This is because a group that is very rich can purchase a vast majority of the goods, and hoard them) or if there are enough speculators (of which over 50% of oil purchases are via speculators)

Hopelessly ignorant. So many misstatements and flawed conclusions, I'm afraid you're beyond logic and reason.

Buying something in hopes that it might appreciate in value is evil...wow. And by the way, you're understanding of insurance vs. speculation is highly flawed.

If only YOU got to tell everyone else what to do, I'm sure we'd have paradise on earth...you keep believing that...

Rep power zero...I'm shocked

Come back when you can respond with something other than “your ignorant and stupid and flawed and stupid”
Also when all you can post is “your stupid” its not the people you are calling who are stupid it is you.

 

[usmcstinger]

...etc etc etc

That's the part I'm worried about.

I didn’t narrow the list of options to the things I could list… 30 years ago no one (or very few) people thought about a cap-and-trade system. But I guess you link taxes and regulations preventing hoarding to shit like killing people

So you are saying government has zero reason to prevent distortions in market prices, economic bubbles, and actions that result in people being pushed into poverty. Did you not consider those things or are you serious?

...government could do many different things such as limit speculation to activities that are actually beneficial

Who gets to determine that? Why don't you tell us what makes some speculation "beneficial" and other not.

History, evidence, research, logic… Some speculation such as hedging (IE insuring) is beneficial because in some markets there can be unexpected external factors that cause the price to plummet. So without this hedging/insuring many people will go bankrupt due to things they had no control in. Furthermore this insuring lessens the creation of bubbles because it evens out wild fluctuations that do not affect long term trends.
Some speculation is bad because it issimply mass purchases of an item so that one can hoard it; causing distortions in market prices in order to sell it off when there are inflated prices. This causes economic bubbles because it pushes up prices even though there is already adequate supply. Furthermore it also wastes money because you have buy storage for a bunch of goods that would otherwise not need stored. There are plenty examples of this happening such as Garlic in China.
Furthermore speculation is worsened if there is a group who has a monopoly or if there is a group rich enough to purchase a large market share of the goods (This is because a group that is very rich can purchase a vast majority of the goods, and hoard them) or if there are enough speculators (of which over 50% of oil purchases are via speculators)

Since you have not provided any viable sources, your statement is nothing more than your uneducated opinion.

 

[starcraftzzz]

That's the part I'm worried about.

I didn’t narrow the list of options to the things I could list… 30 years ago no one (or very few) people thought about a cap-and-trade system. But I guess you link taxes and regulations preventing hoarding to shit like killing people

So you are saying government has zero reason to prevent distortions in market prices, economic bubbles, and actions that result in people being pushed into poverty. Did you not consider those things or are you serious?

Who gets to determine that? Why don't you tell us what makes some speculation "beneficial" and other not.

History, evidence, research, logic… Some speculation such as hedging (IE insuring) is beneficial because in some markets there can be unexpected external factors that cause the price to plummet. So without this hedging/insuring many people will go bankrupt due to things they had no control in. Furthermore this insuring lessens the creation of bubbles because it evens out wild fluctuations that do not affect long term trends.
Some speculation is bad because it is simply mass purchases of an item so that one can hoard it; causing distortions in market prices in order to sell it off when there are inflated prices. This causes economic bubbles because it pushes up prices even though there is already adequate supply. Furthermore it also wastes money because you have buy storage for a bunch of goods that would otherwise not need stored. There are plenty examples of this happening such as Garlic in China.
Furthermore speculation is worsened if there is a group who has a monopoly or if there is a group rich enough to purchase a large market share of the goods (This is because a group that is very rich can purchase a vast majority of the goods, and hoard them) or if there are enough speculators (of which over 50% of oil purchases are via speculators)

Since you have not provided any viable sources, your statement is nothing more than your uneducated opinion.

Where Has China's Inflation Gone? | ThinkProgress
http://wonkroom.thinkprogress.org/2...om/2008/04/03/news/economy/senate_oil_prices/
http://money.cnn.com/2008/04/03/news/economy/senate_oil_prices/
Now remember I’m not a conservative so I don’t make shit up and post bullshit.

 

[American Horse]

If the energy sector including Oil was less volatile because of sound energy policy there would be little to speculate on, at least that would hurt American's in the pocketbook.

 

[Staidhup]

capitalism is a wonderful system.

Its not a perfect system.

which is why editec is spot on

Such a pathetic whiner, if you don't like it, then move to one of your sanctimonious nirvana country's. Fact remains ,no one wants higher gas and energy prices, but your green energy subsidy joke and drilling moratorium, impacts the domestic market doesn't it. Live with it, you asked for it!

 

[Buford]