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

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".

Don't be so ridiculous. Everyone knows that the MSM is left wing biased and in love with Obama, which is why they are conspiring to help get him re-elected.
 
While Obama is looking, maybe he can find the $1.2 Billion his friend and architect of the Failed Stimulus Jon Corzine stole from his clients

[ame=http://www.youtube.com/watch?v=fLB-SQbs_ik]Obama relies on bankrupt Jon Corzine MF Global - YouTube[/ame]
 
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.

I don't necessarily agree with everything you posted here but the things I see are pretty simple:
1. I don't see Obama's move lowering prices or even intending to lower prices at the pump because
2. We're a net exporter of gas already. It's not like Obama can tell the rest of the world to quit increasing their demand for gas. If supply & demand worked the way the people who are blaming Obama for the prices, claimed it did, prices would be low. It doesn't. US Gas & Oil companies aren't socialized. We don't get first crack at our own oil for any kind of discount. These companies sell it for the highest possible profit as is their right.

BTW, has anyone else used the "ignore list"? I just started and it really makes this place more enjoyable. No need to bother with the really negative people! If you haven't tried it, I highly recommend it! :)
I agree, the regulations on speculation will have little impact on the average price at the pump. Assuming that speculation is a significant factor in today's rising gas prices, then it will also be a significant factor in tomorrow's falling gas prices.

The regulations attempt to prevent any one entity or group from controlling the market price or having undue influence on the price. If this is occurring, then the regulations are a good thing.
 
Obama knows this election will surround the economy.
You can already see how the WH is going to frame the debate:
1) Obama against the evil rich bastards.
2) Romney is an evil rich bastard.

The fact that this move like the Buffet move will never pass is exactly what they want - they don't want them to pass - that is the entire reason for doing it. It doesn't matter how bad the idea is or how unrealistic. This is all framed to give Obama the stage to say "I am fighting for you and will continue to fight...they make excuses and continue to support the richest in America."
Sounds like a good strategy to me. It has about as much truth in it as the opposition's strategy.
 
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".

Don't be so ridiculous. Everyone knows that the MSM is left wing biased and in love with Obama, which is why they are conspiring to help get him re-elected.

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.

I don't necessarily agree with everything you posted here but the things I see are pretty simple:
1. I don't see Obama's move lowering prices or even intending to lower prices at the pump because
2. We're a net exporter of gas already. It's not like Obama can tell the rest of the world to quit increasing their demand for gas. If supply & demand worked the way the people who are blaming Obama for the prices, claimed it did, prices would be low. It doesn't. US Gas & Oil companies aren't socialized. We don't get first crack at our own oil for any kind of discount. These companies sell it for the highest possible profit as is their right.

BTW, has anyone else used the "ignore list"? I just started and it really makes this place more enjoyable. No need to bother with the really negative people! If you haven't tried it, I highly recommend it! :)
I agree, the regulations on speculation will have little impact on the average price at the pump. Assuming that speculation is a significant factor in today's rising gas prices, then it will also be a significant factor in tomorrow's falling gas prices.

The regulations attempt to prevent any one entity or group from controlling the market price or having undue influence on the price. If this is occurring, then the regulations are a good thing.

Good post. While there is a need to regulate markets (as the Commercial Mortgage-Backed Securities taught us) and I don't dispute that speculators effect the market, this move by Obama is purely political. Well what the hell, now that political Darwinism has eliminated everyone but Romney, what would we expect?
 
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.

You triggered a quick analysis on my part.
Assume a 1,000 barrel contract changing hands 27 times (speculation alone) how much tax revenue was EARNED as taxable income to the speculator at a rate of .25% net profit and 10% taxes on the earnings.
This 1,000 barrel contract generated $7,000 in Federal taxes on the income earned by the speculators.

With an average of 200,000 contracts per day.. that's $1.6 billion in taxes per day..
(NOTE: I used your figure of 27 contract changes in one day!!!)

Let's take a look, for example, at NYMEX trading in the May crude oil futures contract. A single contract, if held to maturity, would require the seller to deliver 1,000 barrels of oil in Cushing, OK some time in the month of May. Last Friday, 227,000 contracts were traded corresponding to 227 million barrels of oil, which is indeed a large multiple of daily production.

227000 contracts traded 4/13/12
Econbrowser: A ban on oil speculation?

SO once again.. Obama shoots himself in the foot attempting present a political point HE will COST TAX REVENUE! $1 billion a day $ 5 billion a week.. $400 billion in a year..
AGAIN BASED ON YOUR statement 27 times in one DAY!
Reality.. based on above statement FACT contracts may be changes hand less the 27 times as you suggested was the RULE...
 
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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".

Don't be so ridiculous. Everyone knows that the MSM is left wing biased and in love with Obama, which is why they are conspiring to help get him re-elected.

I don't necessarily agree with everything you posted here but the things I see are pretty simple:
1. I don't see Obama's move lowering prices or even intending to lower prices at the pump because
2. We're a net exporter of gas already. It's not like Obama can tell the rest of the world to quit increasing their demand for gas. If supply & demand worked the way the people who are blaming Obama for the prices, claimed it did, prices would be low. It doesn't. US Gas & Oil companies aren't socialized. We don't get first crack at our own oil for any kind of discount. These companies sell it for the highest possible profit as is their right.

BTW, has anyone else used the "ignore list"? I just started and it really makes this place more enjoyable. No need to bother with the really negative people! If you haven't tried it, I highly recommend it! :)
I agree, the regulations on speculation will have little impact on the average price at the pump. Assuming that speculation is a significant factor in today's rising gas prices, then it will also be a significant factor in tomorrow's falling gas prices.

The regulations attempt to prevent any one entity or group from controlling the market price or having undue influence on the price. If this is occurring, then the regulations are a good thing.

Good post. While there is a need to regulate markets (as the Commercial Mortgage-Backed Securities taught us) and I don't dispute that speculators effect the market, this move by Obama is purely political. Well what the hell, now that political Darwinism has eliminated everyone but Romney, what would we expect?
IMHO, just about all legislation that comes from the whitehouse is political, regardless of who's in charge. I haven't seen any details of the proposal, but it could be good legislation but for the wrong reason.

The Commodity Futures Trading Commission has been questioning the need for regulation to limit the size of the holdings of speculators in the oil and gas futures market for a number of years. Allowing the market to be dominated by a relatively small number of speculators increases volatility which is never good for businesses who need the commodity. Nor is it good for the customer at the pump. From the trucking company that needs to know how much they must set aside for fuel for the summer to the individual planning a vacation, it creates problems.
 
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Obama knows this election will surround the economy.
You can already see how the WH is going to frame the debate:
1) Obama against the evil rich bastards.
2) Romney is an evil rich bastard.

The fact that this move like the Buffet move will never pass is exactly what they want - they don't want them to pass - that is the entire reason for doing it. It doesn't matter how bad the idea is or how unrealistic. This is all framed to give Obama the stage to say "I am fighting for you and will continue to fight...they make excuses and continue to support the richest in America."
Sounds like a good strategy to me. It has about as much truth in it as the opposition's strategy.

It is an excellent strategy because for the sheeple - it works every time.
If you can get enough money and connections you will get elected in this country virtually guaranteed. All you have to do is blame the other party and your constituents will vote for you - every time.
And this is why we are f*cked. We have already began the "great lifestyle decline of America". By 2020...The middle class will be what was once lower-middle class, upper middle class will be what middle class was a few years ago.
By 2030...You will be wealthy or poor.
And not one politician is going to change that. The entire political system is thoroughly corrupt and that will not change also.
 
So nobody else remembers when gas spiked under GW and the SEC threatened to investigate oil speculators? Oil dropped shortly thereafter. Wonder whatever happened with that SEC investigation...

It was stupid then, it is stupid now. In fact, since Obama likes to pretend he is the smartest guy in the room, I could argue it is even dumber now, because he is supposed to know better.
 
Obama knows this election will surround the economy.
You can already see how the WH is going to frame the debate:
1) Obama against the evil rich bastards.
2) Romney is an evil rich bastard.

The fact that this move like the Buffet move will never pass is exactly what they want - they don't want them to pass - that is the entire reason for doing it. It doesn't matter how bad the idea is or how unrealistic. This is all framed to give Obama the stage to say "I am fighting for you and will continue to fight...they make excuses and continue to support the richest in America."
Sounds like a good strategy to me. It has about as much truth in it as the opposition's strategy.

It is an excellent strategy because for the sheeple - it works every time.
If you can get enough money and connections you will get elected in this country virtually guaranteed. All you have to do is blame the other party and your constituents will vote for you - every time.
And this is why we are f*cked. We have already began the "great lifestyle decline of America". By 2020...The middle class will be what was once lower-middle class, upper middle class will be what middle class was a few years ago.
By 2030...You will be wealthy or poor.
And not one politician is going to change that. The entire political system is thoroughly corrupt and that will not change also.
Without a huge campaign chest, election to the presidency is virtually impossible today. In 2008, 2.8 billion was spent on the presidential campaigns with the largest amount spent on TV ads. Presidents as well as our legislators do not represent the the people, nor do they represent the voters. They represent their major supporters, large corporations and special interest groups who provide the billions needed to get elected. Until we have real campaign reform, we will not have a government that really serves the people.
 

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