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

Discussion in 'Politics' started by IndependntLogic, Apr 17, 2012.

  1. IndependntLogic
    Offline

    IndependntLogic Senior Member

    Joined:
    Jul 14, 2011
    Messages:
    2,997
    Thanks Received:
    399
    Trophy Points:
    48
    Ratings:
    +399
    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.
     
    • Thank You! Thank You! x 1
    Last edited: Apr 17, 2012
  2. waltky
    Offline

    waltky Wise ol' monkey Supporting Member

    Joined:
    Feb 6, 2011
    Messages:
    20,831
    Thanks Received:
    1,790
    Trophy Points:
    215
    Location:
    Okolona, KY
    Ratings:
    +3,874
    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.
     
  3. saveliberty
    Offline

    saveliberty Diamond Member

    Joined:
    Oct 12, 2009
    Messages:
    42,018
    Thanks Received:
    6,111
    Trophy Points:
    1,830
    Ratings:
    +19,922
    How is that Green Industry regulation coming along? Finding financially viable ones to help all that.
     
  4. rdean
    Online

    rdean rddean

    Joined:
    Aug 9, 2009
    Messages:
    60,089
    Thanks Received:
    6,893
    Trophy Points:
    1,840
    Location:
    chicago
    Ratings:
    +14,947
    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.
     
  5. occupied
    Offline

    occupied Gold Member

    Joined:
    Nov 8, 2011
    Messages:
    16,410
    Thanks Received:
    2,248
    Trophy Points:
    280
    Ratings:
    +5,734
    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.
     
  6. IndependntLogic
    Offline

    IndependntLogic Senior Member

    Joined:
    Jul 14, 2011
    Messages:
    2,997
    Thanks Received:
    399
    Trophy Points:
    48
    Ratings:
    +399
    Which green industry regulation specifically are you referring to? The one that requires full capitalization for the purchase of shares? Other regulations?
     
  7. Wiseacre
    Offline

    Wiseacre Retired USAF Chief Supporting Member

    Joined:
    Apr 8, 2011
    Messages:
    6,025
    Thanks Received:
    1,192
    Trophy Points:
    48
    Location:
    San Antonio, TX
    Ratings:
    +1,194
    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.
     
    • Thank You! Thank You! x 2
    Last edited: Apr 17, 2012
  8. Mr. H.
    Offline

    Mr. H. Diamond Member

    Joined:
    Aug 19, 2009
    Messages:
    44,117
    Thanks Received:
    9,265
    Trophy Points:
    2,030
    Location:
    A warm place with no memory.
    Ratings:
    +15,394
    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.
     
    • Thank You! Thank You! x 3
  9. Wiseacre
    Offline

    Wiseacre Retired USAF Chief Supporting Member

    Joined:
    Apr 8, 2011
    Messages:
    6,025
    Thanks Received:
    1,192
    Trophy Points:
    48
    Location:
    San Antonio, TX
    Ratings:
    +1,194
    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.
     
  10. Vel
    Offline

    Vel Gold Member

    Joined:
    Oct 30, 2008
    Messages:
    5,463
    Thanks Received:
    1,913
    Trophy Points:
    248
    Location:
    Tennessee
    Ratings:
    +1,914

Share This Page