Obama Makes Speech About Regulating Oil Speculators - Gets Blasted by CNN

IndependntLogic

Senior Member
Jul 14, 2011
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So Obama gave a speech about regulating oil speculators and how they buy & sell. He was immediately blasted by CNN and Ali Velshi for this being a "political move".
Well of course, it's a political move! He's a politician. It's an election year. Duh.
Will the regulation Obama discussed lower prices at the pump? Almost certainly not. Obama really has no control over prices at the pump. We are a next exporter of gas, so prices are as low as they could be, based on Supply & Demand. Oil companies are not socialized in America. They are private companies that do what all private companies do: Make as much money as they can. That's what they are doing now. Sometimes, things are as simple as they seem. Big Oil is indeed, behind the prices at the pump but unless we want the government to take them over, that's just none of your business Mr. President.
So why is Obama proposing this regulation? It's political. It sounds nice. He can trumpet a horn and say he's fighting the big, evil Oil Dragon. That much is obvious.
Is this regulation a good thing? Based on what he described, it could be okay. If you want to buy stocks or bonds, you have to pay for them. Oil? Nope. Well not all of it, anyway. Oil futures can be bought & sold by paying for only small portion of the purchase. This does contribute to the volatility of the market.
So okay. This may or may not do something that isn't bad - we'll see how it's written up. But make no mistake about it - it won't make any difference at the pump and it's being done for purely political reasons. The primaries are over and campaign season is now in full swing.
 
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Obama gettin' ready to take names an' kick speculators' butts...
:clap2:
Obama to Request Crackdown on Oil Traders
President Barack Obama speaks in the Rose Garden at the White House in Washington, April 17, 2012, about a plan to increase oversight and crack down on manipulation in oil markets.
President Barack Obama proposed tougher measures Tuesday to fight the illegal manipulation of oil markets, saying his plan would protect American consumers against artificially inflated gasoline prices. The country cannot have some speculators reap millions of dollars in illegal profits while consumers suffer, said Obama. “We cannot afford a situation where speculators artificially manipulate markets by buying up oil, creating the perception of a shortage and driving prices higher, only to flip the oil for a quick profit."

The president is asking Congress for $52 million worth of reforms in the way oil trading is monitored. He wants to hire six times more employees at the Commodity Futures Trading Commission, which supervises oil markets. He also wants to raise the penalties for market rigging and allow regulators to require more money to back up speculative trading. “Things that we can do administratively, we are doing," he noted. "And I call on Congress to pass a package of measures to crack down on illegal activity and hold accountable those who manipulate the market for private gain at the expense of millions of working families."

As with many of the president’s initiatives, the stricter oil market regulations could face an uncertain future in Congress. The top Senate Republican, Minority Leader Mitch McConnell, criticized Obama’s proposal as a political stunt. “The president’s goal here is not to do something about the problem," suggested McConnell. "It is to make people think he is doing something about the problem until the next crisis comes along.”

Republicans have vigorously opposed the president’s energy policies and they reject most additional financial regulations, saying it costs jobs. President Obama has been focusing on energy policy lately, with the election less than five months away and Americans worried about the cost of fuel. U.S. gasoline prices have eased somewhat in recent weeks, after surging in recent months.

Source
 
How is that Green Industry regulation coming along? Finding financially viable ones to help all that.
 
Make the speculators take what they buy. That will solve the problem of speculation. Isn't that what capitalism is all about? You buy it, you own it.
 
Make the speculators take what they buy. That will solve the problem of speculation. Isn't that what capitalism is all about? You buy it, you own it.

At the peak of the last major oil spike a barrel of oil changed hands an average of 27 times before it reached the refinery, it has to be a similar situation now.
 
How is that Green Industry regulation coming along? Finding financially viable ones to help all that.

Which green industry regulation specifically are you referring to? The one that requires full capitalization for the purchase of shares? Other regulations?
 
Illegal? Shouldn't we be going after any illegal activities, not just oil? Oh, wait, it's not illegal YET. I get it, just another example of picking winners and losers based on his political agenda.
 
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You must keep in mind that the same futures trading practices were in place in 1999 when oil was $12/barrel.

Were there illegal shenanigans going on back then?

Not likely. What was illegal then was foreign countries dumping their product on our domestic markets at below cost. And Clinton didn't do a motherfucking thing about it.

Contracts that are ultimately sold at a loss may also change hands 27 times before the physical product reaches the refinery. Ever think about that one?

And... if Obama got his way with this proposal, foreign exchanges would continue about their merry way while oil contracts are artificially suppressed in the U.S. which would kill our domestic industry.

Get a godamn clue, folks.
 
So, who's doing illegal stuff? Anybody explain that please, what're they doing that futures traders in every other commodity aren't doing? What, we have to pass a law to outlaw something that's already illegal? I'm thinking there's a giant wave of bullshit coming right at us from the WH.

There are many industries that use oil futures as a way to manage costs, so they're not too high or too low and they can reduce their exposure to sudden price hikes. I've never understood the reasoning behind the denigration of one group over everyone else. Outside of politics that is.
 
Course Pubs will protect their cronies...the NBC expert said speculators cost us $30 a barrel- and NO!- the speculators mess with the price 3x as much now because of Boooosh cronyism and deregulation. What a legacy...great job, Pubbies fcs.
 
So Obama gave a speech about regulating oil speculators and how they buy & sell. He was immediately blasted by CNN and Ali Velshi for this being a "political move".
Well of course, it's a political move! He's a politician. It's an election year. Duh.
Will the regulation Obama discussed lower prices at the pump? Almost certainly not. Obama really has no control over prices at the pump. We are a next exporter of gas, so prices are as low as they could be, based on Supply & Demand. Oil companies are not socialized in America. They are private companies that do what all private companies do: Make as much money as they can. That's what they are doing now. Sometimes, things are as simple as they seem. Big Oil is indeed, behind the prices at the pump but unless we want the government to take them over, that's just none of your business Mr. President.
So why is Obama proposing this regulation? It's political. It sounds nice. He can trumpet a horn and say he's fighting the big, evil Oil Dragon. That much is obvious.
Is this regulation a good thing? Based on what he described, it could be okay. If you want to buy stocks or bonds, you have to pay for them. Oil? Nope. Well not all of it, anyway. Oil futures can be bought & sold by paying for only small portion of the purchase. This does contribute to the volatility of the market.
So okay. This may or may not do something that isn't bad - we'll see how it's written up. But make no mistake about it - it won't make any difference at the pump and it's being done for purely political reasons. The primaries are over and campaign season is now in full swing.

Did you listen to what Veshi said, or did you just chose to ignore it because your idol was being challenged? He specifically pointed out that speculation is such a small part of the price of oil that regulating it would have no real affect on gas prices. In fact, he actually implied that the idea is so stupid that it indicates Obama doesn't know what he is talking about. He never said it was political at all, that would have made sense, to a degree, it is just plain stupid.

As usual, Obama is so far out of his depth that he might as well be playing tiddlywinks.
 
Course Pubs will protect their cronies...the NBC expert said speculators cost us $30 a barrel- and NO!- the speculators mess with the price 3x as much now because of Boooosh cronyism and deregulation. What a legacy...great job, Pubbies fcs.

How can you spout out such bullshit without giving any supportive reference?

Who's protecting agriculture in this country? Farm state Democrats?

I want cheap cheese goddamnit.

[ame=http://www.youtube.com/watch?v=fXwvL7n7NCQ]Where is my cheese whiz boy - YouTube[/ame]
 
Make the speculators take what they buy. That will solve the problem of speculation. Isn't that what capitalism is all about? You buy it, you own it.

It will? How? Suppose they buy a bunch of oil at $100 bbl and take delivery of it. That would take that amount of oil off the market, decreasing the supply, without increasing the demand, thus driving up the cost. They could then sell that oil to another speculator at a higher price, and cycle that around for a while, all the time keeping it off the market, thus driving the price even higher. They could eventually sell it to a refinery at an inflated price, and drive the cost of gasoline even higher. The only real difference would be in the minds of a few small minded idiots that think trading pieces of paper or electronic receipts is somehow different than trading something real.

Oops, I forgot I am talking to a small minded idiot.
 
Make the speculators take what they buy. That will solve the problem of speculation. Isn't that what capitalism is all about? You buy it, you own it.

At the peak of the last major oil spike a barrel of oil changed hands an average of 27 times before it reached the refinery, it has to be a similar situation now.

Do you have any idea how often bacon changes hand between the time a pig is born and you eat it? Does all the speculation on pork bellies actually change the aggregate demand for bacon, or go you really think there is a difference between speculation on oil and speculation on anything else?
 
Illegal? Shouldn't we be going after any illegal activities, not just oil? Oh, wait, it's not illegal YET. I get it, just another example of picking winners and losers based on his political agenda.

there is, arguably, a need for some new regulation in the futures market. Targeting oil specifically would only prove how stupid politicians are, and not actually solve anything. The only thing Obama said that actually made sense was upgrading the tools that we use to track speculation because the trades happen electronically, and the government still uses paper to track them.
 
What are the regulations?

Speculators can certainly run up the price of gas, but they can also run it down. Speculators buy commonalities in hope of selling them at a higher price. If the price goes up, they make a profit. If it goes down, they lose money. Unlike stocks, they must sell them. They can't hold them indefinitely. When they sell them it puts a downward pressure on the price. In other words speculators can effect price over the short term, but over the long term, other factors are much more important.
 
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Course Pubs will protect their cronies...the NBC expert said speculators cost us $30 a barrel- and NO!- the speculators mess with the price 3x as much now because of Boooosh cronyism and deregulation. What a legacy...great job, Pubbies fcs.

The NBC "expert" said that? Did he provide any evidence to back that up, or are we supposed to believe it just because he said it? Experts actually back up what they say, or admit they don't know.
 
Course Pubs will protect their cronies...the NBC expert said speculators cost us $30 a barrel- and NO!- the speculators mess with the price 3x as much now because of Boooosh cronyism and deregulation. What a legacy...great job, Pubbies fcs.

How can you spout out such bullshit without giving any supportive reference?

Who's protecting agriculture in this country? Farm state Democrats?

I want cheap cheese goddamnit.

QUOTE]

It was easy- the specifics are from CNBC "Fast Money". To suspect Pubs and cronyism is NEVER a mistake lately, dupe.
 

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