Oil Speculators on Wallstreet are the Problem

Discussion in 'Politics' started by sealybobo, Mar 19, 2012.

  1. sealybobo
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    sealybobo Diamond Member

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    Forget Drill baby drill. Forget about building new refineries. Forget degulations or giving the oil companies more tax breaks. All these GOP right wing talking points are just a distractions. They refuse to deal with this fact.

    If you own an economy car, Oil Speculators on Wallstreet are costing you an extra $7.30 every time you fill up and $10.41 if you own an SUV.

    Robert Reich (Why Republicans Aren't Mentioning the Real Cause of Rising Prices at the Gas Pump)

    Waaa!!! Let me guess, Republicans won't like my source! Deal with it. Rox and Rush ain't gonna tell you this shit.

    The answer is not refineries. If it were, why are the oil companies closing refineries down? No money in building refineries. I guess these free marketers want us to build them for them so they can sell our oil on the world market and still charge us $4 a gallon.

    The answer is not drill baby drill. This is just a land grab. Giving our commons to the oil companies for nothing. They won't pass the savings on to us or share the profits.

    And the oil companies already pay zero taxes so the answer is not more tax breaks.

    And the answer is not more deregulations. Just look at the BP oil spill in the Gulf.
     
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  2. Decepticon
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    Decepticon BANNED

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    Let us also not forget that the GOP wanted to CUT the budget of the entity charged with stopping speculation.


    Congressional Republicans’ plan to cut Commodity Futures Trading Commission funding to 2008 levels would allow for manipulation of energy markets and could lead to higher U.S. oil prices, Senate Democrats said in a letter.

    “At a time where gas prices are rising and squeezing American families, we have a responsibility to provide our watchdogs the resources they need to fulfill their important oversight and regulatory responsibilities,” the lawmakers wrote in a letter scheduled to be sent today to Senate Minority Leader Mitch McConnell and House Speaker John Boehner.

    The proposed cuts would undermine the CFTC, which protects American consumers by “cracking down on manipulation and other market abuses,” according to the letter signed by more than 40 of the Senate’s 51 Democrats.

    The $169 million budget for the CFTC, which has authority under the Dodd-Frank Act to write derivatives regulations, has been caught in a stalemate between Republicans aiming to cut spending and Democrats looking to pay for the new rules.

    Republicans, who took control of the House and narrowed the Democrats’ Senate majority in November elections, proposed cutting the CFTC’s budget by $56.8 million for the current fiscal year. The agency’s budget would increase to $308 million under President Obama’s fiscal 2012 proposal presented Feb. 14.

    CFTC Chairman Gary Gensler has said the budget for this year is “far less” than what is needed to fulfill the agency’s responsibilities under Dodd-Frank, the regulatory overhaul enacted in July. A funding reduction would lead the CFTC to cut its staff, Gensler told senators on March 3.




    Senate Democrats Say CFTC Budget Cut Could Increase Oil Prices - Bloomberg


    SO more than a YEAR ago, senate dems were warning of this and the reasons why it would happen.

    OUCH!

    This really puts a damper on those poor RepubliCONZ blaming anyone but themselves for the high gas prices.
     
    Last edited: Mar 19, 2012
  3. kwc57
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    kwc57 BOHICA Obama

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    Get RDean in here and you guys can have a threeway circle jerk.
     
  4. Soggy in NOLA
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    Soggy in NOLA Platinum Member

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    Yeah, everybody knows that supply and demand have no effect on prices.

    :lol:
     
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  5. Rocko
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    Rocko Gold Member

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    All the people blaming speculators are basically saying the market is not an efficent platform. Sure speculators may drive up prices for a while, but the market ALWAYS corrects to reflect demand.
     
    Last edited: Mar 19, 2012
  6. Decepticon
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    So, the market will always correct to reflect demand?
    What if the speculators were the ones running the show?


    What would the price of oil be if left to conventional supply-and-demand fundamentals? Canada is the largest supplier of imported oil to the United States, which produces more than half the oil it consumes. Production and delivery costs for a barrel of Canadian oil are about $75 a barrel. The market-fundamentals cost for a barrel is in that ballpark; above that, speculation sets the prices.

    "It's as simple as that," said Gheit, who has testified before Congress and called for regulatory limits on speculation in commodities.

    Financial speculators historically accounted for about 30 percent of oil trading in commodity markets; producers and end users made up about 70 percent. Today, it's almost the reverse.

    A review of data from the Commodity Futures Trading Commission, which regulates oil trading, shows producers and merchants made up 36 percent and speculators 64 percent of all contracts traded in the week ending Feb. 14.
    Speculators blamed for rising oil, gas prices | Seattle Times Newspaper


    It seems to me, that the market ARE THE SPECULATORS!

    Who voted to cut the budget of the Commodities and Futures Trading Commission? You know, the government body charged with ending illegal speculation in commodity markets? Oh, that's right. The republicans TO A MAN. HR 2112.


    Anything else you want to add?
     
  7. Rocko
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    Rocko Gold Member

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    What he or you are saying doesn't make any sense. Why in God's name would any investor purposely create an artifical bubble? Why?
     
  8. CrusaderFrank
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    CrusaderFrank Diamond Member

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    That's not what Obama and the Democrats said in 2006 or 2008

    [ame=http://www.youtube.com/watch?v=Ka_tjPLJwVI]Barack Obama 2008 ad on Gas Prices - YouTube[/ame]

    [ame=http://www.youtube.com/watch?v=mzj4GyeBaTY]Barack Obama 2008 Ad About High Gas Prices - YouTube[/ame]
     
  9. Rocko
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    Rocko Gold Member

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    Meaning why would anyone invest in anything they know is overvalued????

    This really belongs in conspiracy section, in my opinion.
     
  10. Decepticon
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    Decepticon BANNED

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    Der...to make money.
    Do you think the market operates RATIONALLY where PROFIT is to be had ? What gave you this idea?

    Didn't learn too much from 2007-2008, did you?
     

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