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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.
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.
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.
That's MR dupe to you, bub.
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.
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.
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.
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.
True... I'm getting great ROIs on oil right now.
And kudos to you for that.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.
True... I'm getting great ROIs on oil right now.
Most people are, in one fashion or another. If anyone has their money in a mutual fund or retirement plan they are undoubtedly invested in the industry.
A few years ago, I had a plane seat next to a guy who managed pension funds for universities. He asked me when I thought crude would be priced $100 + again. I gave it some thought and told him 3 years. He turned his nose up and went back to his magazine.
Well, it was 3 years before oil went from what was $40 at the time to $100+.
Damn I'm good.
And kudos to you for that.True... I'm getting great ROIs on oil right now.
Most people are, in one fashion or another. If anyone has their money in a mutual fund or retirement plan they are undoubtedly invested in the industry.
A few years ago, I had a plane seat next to a guy who managed pension funds for universities. He asked me when I thought crude would be priced $100 + again. I gave it some thought and told him 3 years. He turned his nose up and went back to his magazine.
Well, it was 3 years before oil went from what was $40 at the time to $100+.
Damn I'm good.
I prefer to manage my own money, don't do 'mutual funds' or 'retirement plans'. That way, I can take advantage of quick wins.
Obama gettin' ready to take names an' kick speculators' butts...
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 presidents initiatives, the stricter oil market regulations could face an uncertain future in Congress. The top Senate Republican, Minority Leader Mitch McConnell, criticized Obamas proposal as a political stunt. The presidents 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 presidents 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.
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