Should We Re-enact Glass-Steagall?

[eagle1462010]

BS Rabbi.

I've shown article after article about the prices.

I've shown how that consumption went down while the prices SPIKED.

I've shown actual statements from traders who said, Traders smelled Blood in the Water and started a trading Feeding Frenzy on buying oil commodities that drove up prices.

I've shown how oil prices went up 15 Dollars a Barrel in 2 days because of the Markets.

You've shown NOTHING.

Notta, and refuse to answer my questions. Except I don't know anything.

Why don't you answer those questions or contradict the sites posted?

Because you know they show the truth.

The markets drive up the prices by trading in LARGE VOLUMES. Artificially driving up prices and you know it.

Which is exactly why the Graham Leahy Act should be REPEALED.

 

[eagle1462010]

Why Oil Prices Are So High

In 2013, oil prices started rising in January, earlier than ever. Iran kicked off the year by playing war games near the Straits of Hormuz. This was perceived as a potential threat to this strategic shipping lane. By February 8, oil reached $118.90/barrel. This sent gas prices to $3.85 by February 25. Since then, oil and gas prices have leveled off. Prices are expected to average $105 barrel for Brent crude oil in 2013.
This is lower than 2012's average of $112 per barrel. The EIA bravely forecasts the average price of oil will fall even more in 2014 to $99 per barrel. Why? U.S. pipeline capacity will be expanded, allowing greater supply. Demand will be only mildly supported by moderate economic growth in the U.S. The EIA forecasts growth to be at the low end of the healthy 2-3% growth rate. (Source: EIA, Short-Term Forecast)

Reasons for High Oil Prices in 2012:

Oil prices started rising much sooner in 2012 than they did in 2011. The price for WTI crude oil broke above $100 a barrel on February 13, 2012, two weeks earlier than in 2011. Rising oil prices drove gas prices above $3.50 a gallon that same week. Gas prices had already breached $3.50 a gallon on the East and West coasts in January.
By March, Brent Crude Oil (which is more expensive than WTI) peaked at $125 a barrel. It settled down to $95 a barrel in June, but rose $113.36 by August. Normally, oil prices drop in the fall and winter. However, commodities futures traders were bidding up oil prices to offset what the Fed's expansive monetary policy. They were betting the dollar would drop, which drives up oil prices. They were wrong about the dollar, but oil prices rose despite lower demand. (Source: Forbes, The Price of Oil Is the New Economic Spoiler, September 12, 2012)

People were concerned because gas and oil prices rose earlier than in the past. However, less and less of oil prices are due to supply and demand. More and more of it is based on the expectations of commodities markets.

Why Oil Prices Rose in 2011:

Crude oil prices reached a recent high of $113.93 on April 29, 2011. Prices had been increasing steadily since February 2009, when prices dropped to $39 a barrel. Prices hovered at a comfortable $70-$80 a barrel until late 2010. High oil prices translate to high gas prices. Petroleum is also an ingredient in fertilizer. This, combined with higher transportation costs, increases food prices. The forces driving high oil prices are similar to what happened when oil hit an all-time high in 2008.
The All-Time High Was $143.68 a Barrel:

Oil prices hit an all-time high of $143.68 a barrel in July 2008. This drove gas prices to $4.17 a gallon. Most news sources blamed this on surging demand from China and India, combined with decreasing supply from Nigeria and Iraq oil fields. However, even then this wasn't logical, since the economy was already in a recession. For more, see Gas Prices in 2008. (Source: BBC, Oil Price May Hit $200 a Barrel, May 7, 2008)
Supply and Demand Are Not Alone in Driving Up Oil Prices:

The price of oil is driven by much, much more than supply and demand. This was proven in 2008. Thanks to the recession, global demand in 2008 was actually down and global supply was up. Prices rose, nevertheless. Oil consumption decreased from 86.66 million barrels per day (bpd) in the fourth quarter 2007 to 85.73 million bpd in the first quarter of 2008. At the same time, supply increased from 85.49 to 86.17 million bpd.

According to the laws of supply and demand, prices should have decreased. Instead, they increased almost 25% in that time - from $87.79 to $110.21 a barrel. (Source: EIA. See Google Spreadsheet)

Commodities Trading Drove Up Oil Prices:

Why? Although the EIA pinned part of the blame on volatility in Venezuela and Nigeria, it warned of an influx of investment money into commodities markets. Investors were stampeding out of the falling real estate and stock markets. Instead, they diverted their funds to oil futures. This sudden surge drove up oil prices, creating a speculative bubble. (Source: EIA Short-Term Energy Outlook)
This bubble soon spread to other commodities. Investor funds swamped wheat, gold and other related futures markets. This speculation drove up food prices dramatically around the world. The result? Food riots in less-developed countries by people facing starvation. (Source: BBC News,Commodity Boom Continues to Roll, January 16, 2008; CNN, Riots, Instability Spread as Food Prices Skyrocket, February 18, 2008)

This explains why oil prices are lower today than they were in 2008, despite a healthier global economy and greater worldwide demand for oil. Today, there are many more outlets for investment funds. In 2008, the global markets were so risky and uncertain, investors turned from stocks, bonds and even housing to the U.S. dollar, gold and oil. In 2012, despite uncertainty around the eurozone crisis, investors had many more options. The stock market rose, the bond market was less risky, and even housing improved. Although the global market is still in slow growth mode in 2013, it is stabilizing, and that means oil prices shouldn't break the peak hit in 2008.

High oil prices are also driven by a decline in the dollar. Most oil contracts around the world are traded in dollars. As a result, oil-exporting countries usually peg their currency to the dollar. When the dollar declines, so do their oil revenues, but their costs go up. Therefore, OPEC must raise the price of oil to maintain its profit margins and keep costs of imported goods constant. (Source: USA Today,Oil Briefly Spurts Near $104 per Barrel, March 3, 2008)

However, OPEC doesn't want oil prices too high, or alternative fuel sources start to look good. OPEC has said its target price for oil is between $70-$80 a barrel. In 2008, Saudi Arabia announced it would increase supply. This was one reason prices started to drop. (See High Oil Prices Caused by Wall Street, Not OPEC) (Article updated March 11, 2013)

 

[eagle1462010]

lol

I get a negative hit from rabbi. Calling me a Dunce.

LOL

Again, prove that the markets haven't speculated the prices................

[ame=http://www.youtube.com/watch?v=mTwjUE60HG4]Metallica The Unforgiven Lyrics - YouTube[/ame]

The Unforgiven.........................

Enjoy............because those who crashed the economy via the Markets are UNFORGIVEN.

 

[eagle1462010]

Causes of the Great Depression - Wikipedia, the free encyclopedia

Debt deflation

Total debt to GDP levels in the U.S. reached a high of just under 300% by the time of the Depression. This level of debt was not exceeded again until near the end of the 20th century.[19]
Jerome (1934) gives an unattributed quote about finance conditions that allowed the great industrial expansion of the post WW I period:
Probably never before in this country had such a volume of funds been available at such low rates for such a long period.[20]
Furthermore, Jerome says that the volume of new capital issues increased at a 7.7% compounded annual rate from 1922-29 at a time when the Standard Statistics Co.'s index of 60 high grade bonds yielded from 4.98% in 1923 to 4.47% in 1927.
There was also a real estate and housing bubble in the 1920s, especially in Florida, which burst in 1925. Alvin Hansen stated that housing construction during the 1920s decade exceeded population growth by 25%.[21] See also:Florida land boom of the 1920s
Irving Fisher argued that the predominant factor leading to the Great Depression was over-indebtedness and deflation. Fisher tied loose credit to over-indebtedness, which fueled speculation and asset bubbles.[22] He then outlined nine factors interacting with one another under conditions of debt and deflation to create the mechanics of boom to bust. The chain of events proceeded as follows:
Debt liquidation and distress selling
Contraction of the money supply as bank loans are paid off
A fall in the level of asset prices
A still greater fall in the net worths of business, precipitating bankruptcies
A fall in profits
A reduction in output, in trade and in employment.
Pessimism and loss of confidence
Hoarding of money
A fall in nominal interest rates and a rise in deflation adjusted interest rates.[22]
During the Crash of 1929 preceding the Great Depression, margin requirements were only 10%.[23] Brokerage firms, in other words, would lend $9 for every $1 an investor had deposited. When the market fell, brokers called in these loans, which could not be paid back. Banks began to fail as debtors defaulted on debt and depositors attempted to withdraw their deposits en masse, triggering multiple bank runs. Government guarantees and Federal Reserve banking regulations to prevent such panics were ineffective or not used. Bank failures led to the loss of billions of dollars in assets.[24]
Outstanding debts became heavier, because prices and incomes fell by 20–50% but the debts remained at the same dollar amount. After the panic of 1929, and during the first 10 months of 1930, 744 US banks failed. (In all, 9,000 banks failed during the 1930s). By April 1933, around $7 billion in deposits had been frozen in failed banks or those left unlicensed after the March Bank Holiday.[25]
Bank failures snowballed as desperate bankers called in loans, which the borrowers did not have time or money to repay. With future profits looking poor, capital investment and construction slowed or completely ceased. In the face of bad loans and worsening future prospects, the surviving banks became even more conservative in their lending.[24] Banks built up their capital reserves and made fewer loans, which intensified deflationary pressures. A vicious cycle developed and the downward spiral accelerated.
The liquidation of debt could not keep up with the fall of prices it caused. The mass effect of the stampede to liquidate increased the value of each dollar owed, relative to the value of declining asset holdings. The very effort of individuals to lessen their burden of debt effectively increased it. Paradoxically, the more the debtors paid, the more they owed.[22] This self-aggravating process turned a 1930 recession into a 1933 great depression.
Macroeconomists including Ben Bernanke, the current chairman of the U.S. Federal Reserve Bank, have revived the debt-deflation view of the Great Depression originated by Fisher.[26][27]
Economist Steve Keen revived the Debt-Reset Theory after he accurately predicted the 2008 recession based on his analysis of the Great Depression, and recently advised Congress to engage in debt-forgiveness or direct payments to citizens in order to avoid future financial events.[28]
Some people have recently claimed that high levels of private debt may have caused the Great Depression.[29][30][31]

 

[The Rabbi]

BS Rabbi.

I've shown article after article about the prices.

I've shown how that consumption went down while the prices SPIKED.

I've shown actual statements from traders who said, Traders smelled Blood in the Water and started a trading Feeding Frenzy on buying oil commodities that drove up prices.

I've shown how oil prices went up 15 Dollars a Barrel in 2 days because of the Markets.

You've shown NOTHING.

Notta, and refuse to answer my questions. Except I don't know anything.

Why don't you answer those questions or contradict the sites posted?

Because you know they show the truth.

The markets drive up the prices by trading in LARGE VOLUMES. Artificially driving up prices and you know it.

Which is exactly why the Graham Leahy Act should be REPEALED.

So when gas prices go down do you blame greedy speculators?

 

[eagle1462010]

Asking me a question when you refuse to answer mine.

Speculation has ups and downs, but when they drive a Barrel to 147 what choice does it have but to go down.

Or would you have it continue to go up so we could have 6 Dollars a Gallon Gasoline.

You still REFUSE to answer my questions. You do not REFUTE ANY OF THE ARTICLES POSTED. Notta, NILCH.

Even after showing INVESTORS themselves saying they drive the prices up.

Why is that? You know the answer.

 

[eagle1462010]

Fed Puts Markets on Noticeossible Discontinuation of 24/7 Happy Hour | Smaulgld

“Hitler will send no warning- so always carry your gas mask” – British Ministry of Home Security poster circa the Sitzkrieg* (October 1939-April 1940)

The economy is already wearing an over sized Fed tailored suit and now the market is worried that the Fed might “taper” that suit.

Here is what the Fed has already thrown on for size:

Purchases of mortgage backed securities (MBS’s) and U.S. Treasuries (Treasuries)
QE1 $600+ Billion
QE2 $600 Billion
QE3 $480 Billion
QE3 + (infinity)$1 trillion+ annualized
QE infinity “tapered” to $65 billion per month =$780 billion annualized

As you can see, even if the Fed were to cut back their purchases they would still be buying a monumental amount of MBS’s and Treasuries as their war on the US dollar continues in a vain attempt to keep interest rate low.

When the Fed first launched QE1 and subsequent iterations, gold and silver soared in anticipation of future price inflation. It took three rounds of QE before the price of stocks and real estate finally responded. Since price inflation has remained nascent in spite of a couple trillion worth of QE, gold and silver recently nose dived (you can blame manipulation on the price declines but the markets would have snapped back if they didn’t believe the “look there is not inflation” narrative, but then how to explain the surge in the purchase of physical and gold and silver-I digress, gold and silver manipulation is not the subject of this post – see GATA for more on that topic)

One point is very clear- if you were worried about inflation when the Fed launched an unprecedented $600 billion QE program, you shouldn’t be any less concerned when the Fed after blowing over $2 trillion threatens to “taper” QE to just seven hundred or so billion a year. The “QE worked and there is no inflation” victory lap is a bit premature because there is no Fed exit.

If the Fed slows down bond purchases, not to mention stops them altogether, bond yields will increase, borrowing costs for home purchasers and the debt laden U.S. will increase and the stock market will most likely “correct” or crash. Notice what has happened to yields since the taper talk started – they are now at 14 month highs and that’s from just talk. The stock market and real estate market are still rolling along, but for how long?

If Fed actually tapered and interest rates rose and the stock market fell, the Fed would probably immediately reverse course and increase the size of QE -i.e open the bar back up 24/7 and start paying people to drink there.

The beneficiaries of Fed policy – the U.S. Government, too big to fail banks, the stock and real estate markets – are so used to the economy wearing such a big suit bloated with QE stimulus, they’d freeze to death without it. Axel Merk calls the seeming permanence of QE the “new normal”.

The first round of QE was extraordinary measure in 2008, but now it’s a permanent feature of the sluggish U.S. economy.

Stop Making Sense?

The Fed knows that things stop making sense when they stray too far from normal. The novelty of QE has worn off and the Fed is aware that if they keep it up too long the novelty becomes a joke and confidence in the dollar will be lost, so they talk taper and act like they are not going to wear the QE suit forever. But they know the markets now demand it and are dependent on it. Thus the Fed’s No Exit dilemma. At some point the Fed will either print one dollar too many and confidence will be lost, or they will print one less dollar and support for the economy will vanish.

The resolution of the Fed’s No Exit dilemma will come without warning, so have your gas masks ready at all times.

The road does not go on forever.

 

[Toddsterpatriot]

How Wall Street Is Raising the Price of Gas - ABC News

ABC News’ Mark Greenblatt Reports:
Every time you fill up your car with gas, your dollar ends up in the hands of a wide range of interests from around the world. Some of your money goes to oil companies, some of what you pay goes to refineries, and more still gets divided up by the gas stations you stop at.
What may surprise you, however, is what one of Wall Street’s top regulators has to say about who else you’re paying: speculators on Wall Street.
Bart Chilton, a commissioner at the Commodity Futures Trading Commission, the federal agency that regulates commodity futures and option trading in the United States, said it’s time to look at home — in addition to overseas — when searching for the reasons why gas prices are on the rise.
“I’m fired up,” Chilton said. “I’m concerned and we have to look after consumers.”
According to Chilton, much of the problem is actually “made in the USA,” created by Wall Street traders who gamble on oil prices.
“There aren’t markets without speculation,” Chilton told ABC News. “It’s the excessive speculation we are concerned about.”
Chilton, who has served as commissioner since 2007, said far too few players control far too much of the market, allowing them to push the price of gas higher and higher. Chilton and the CFTC are attempting to implement caps on the total positions speculators can take when trading in the oil futures markets.
Chilton obtained an energy research report from Goldman Sachs spelling out how much the Wall Street firm estimated speculators had pushed up the real price of oil sold to make gas, due to large bets in the markets.
Using the numbers from in the Goldman Sachs report, combined with current information from the CFTC, Chilton calculated how much speculation is driving up the price at the pump for the average consumer.
He shared calculations with ABC News for the first time.
By Chilton’s calculation, if you drive a car like a Honda Civic, you’re paying $7.30 more than you should every time you fill up — to Wall Street speculators. If your car is a Ford Explorer you’re paying an extra $10.41.
For a Ford F150, he says owners pay an additional $14.56 per fill up -or more than $750 a year.
For their part, industry groups representing Wall Street say there is no evidence their trading activities actually push up the price of oil.
Chilton isn’t doesn’t buy that argument. He and the CFTC are currently attempting to implement new rules that would put limits on speculation. In response, Wall Street is suing the CFTC attempting to get an injunction, which would allow everything to remain status quo.
“They don’t want these limits,” he said. “They want unbridled ability to speculate in these markets and that’s not good for consumers. It’s not good for markets. It’s not good for the economy.”

By Chilton’s calculation, if you drive a car like a Honda Civic, you’re paying $7.30 more than you should every time you fill up — to Wall Street speculators.

How does a Wall Street speculator, who bets the price is going down, collect $7.30 from you when you fill up your Civic?

Show me.

 

[Toddsterpatriot]

One trade doesn't jack up the price MR. Wallstreet.

Which is exactly why your example doesn't mean squat.

Before 2000 the TRADES WERE LIMITED to prevent Speculation. The CFTC was ABLE TO LIMIT TRADING to prevent ARTIFICIAL INFLATION of Commodities such as oil.

Riddle me this. If the HEDGED BETS would only make money via Supply and Demand, then why have PRICES GONE up up and away so many times WITHOUT SUPPLY INCREASING?

You are simply enjoying the markets making money off the average joe, by trading away at commodities.

During the 2000's decade, PRICE OF GAS SKY ROCKETED and it wasn't by a FACTOR OF SUPPLY AND DEMAND.

Who made those prices RISE? A FAIRY TALE MONSTER OR SOMETHING MR. WALL STREET.............

One trade doesn't jack up the price MR. Wallstreet.

You're shitting me. My example was a guy who "controlled" one million barrels and never took delivery. He didn't raise the price? Thanks for admitting your earlier, ignorant, error.

If the HEDGED BETS would only make money via Supply and Demand

Hedged bets don't make (or lose) money. They're hedged.
Maybe you should go get a clue and then come back.
I'll be happy to discuss the issues when you aren't so completely ignorant.

 

[Toddsterpatriot]

Why is US Oil Consumption Lower? Better Gasoline Mileage? | Our Finite World

Consumption went down 20% during those times, but THE PRICE KEPT GOING UP.

Why the HELL DID THE PRICES GO UP? FROM CLUELESS

It's true, you are clueless.

 

[Toddsterpatriot]

Four US banks hold a staggering 95.9% of U.S. derivatives: The $600 Trillion Time Bomb That?s Set to Explode | Global Research

I hope none of these four companies pass gas again on their DERIVATIVES. Oh, I know I know I know............It's ONLY A NOMINAL VALUE when we talk about DERIVATIVES holdings from 4 Banks that own nearly 600 TRILLION IN NOMINAL VALUE.

But it's no BIG DEAL RIGHT MR. WALLSTREET AND OTHERS. They are just HOLDING THIS FICTIONAL PAPER BS. No big deal at all even though these NOMINAL VALUES GO OUT OF THE SOLAR SYSTEM.

No big deal guys that they TRADE with only a SMALL FRACTION OF THEIR BETS.

This is ALL BS and YOU GUYS KNOW IT NO MATTER WHAT YOU TYPE.

Hey, by the way, What was Greece hiding before they crashed and why did GOLDMAN SACHS help them cook the books?

That story turned out real well for Greece didn't it?

What was Greece hiding before they crashed

Greece spends way too much. Obama wants us to spend way too much.
That story is going to turn out real well for us, isn't it?

 

[Toddsterpatriot]

Not very smart huh................................

I produce 2 million widgets.
Widgets are in high demand so I'm making a fortune.
People stop buying widgets.
Supply is up.
demand is low
SO WHAT DO I DO TO sell Widgets THAT NOBODY IS BUYING...............
In your STUPID MINDS if I RAISE THE PRICES OF WIDGETS they'll SUDDENLY SELL.............
And you people people call me stupid.

When Supply is high and Demand is DOWN PRICES SHOULD GO DOWN, but they DIDN'T.

Did your FAIRY GODMOTHER MAGICALLY RAISE THE GAS PRICES? Or did Samatha of Bewitched twenkle her nose to cause the prices to go up?

You people KNOW the MARKETS DRIVE UP PRICES ARTIFICIALLY but don't give a DAMN.

It was the banks TOO BIG TO FAIL, THAT CAUSED THIS BS.

Banks drive up gas prices? Wow. Where do they teach this stuff?

MARKET SPECULATION. Get your story straight.

I'll ask you again, why did the price of gas go up when I showed you how DEMAND WENT DOWN.

MARKET SPECULATION. Get your story straight.

I gave you an example of speculation and you admitted it didn't jack up the price.
Get your story straight.

 

[Toddsterpatriot]

Fuck Off Rabbi.

You will not answer the questions on WHY THE PRICES WENT UP when DEMAND WENT DOWN.

The last article showed a 15 Dollar a Barrel Jump in 2 Days.

Done by the Markets.

What have you shown other than trying to ditch me and my questions?

You know that this occurred and there is sufficient evidence out there to prove it. I used to look at the graphs of this BS, watching trading SPIKES on oil. When the TRADING VOLUME WENT UP, the BARREL PRICES WENT UP, and LOW AND BEHOLD my LOCAL GAS PRICES WENT UP.

Only a FOOL would say otherwise.

You know DAMNED WELL SPECULATORS DRIVE UP PRICES or they'd NEVER TRADE A DAMN THING.

Which is EXACTLY WHY THEY NEED TO BE PUT ON A LEASH IN VITAL COMMODITIES.

This SHIT was ILLEGAL BEFORE 2000.

That law allowed rampant speculation outside of REGULATORY CONTROL and they JACKED UP THE DERIVATIVES VALUES TO INSANE LEVELS in 8 years.

This caused the crash. This caused our Gas prices to go up, and it HURT THE ECONOMY because Gas is a driving factor on everything.

Unless you have found a way to ship goods on water.

The last article showed a 15 Dollar a Barrel Jump in 2 Days.

Done by the Markets.

People in the markets bid up the price by $15 a barrel?

You're shitting me!

 

[Toddsterpatriot]

Why Oil Prices Are So High

In 2013, oil prices started rising in January, earlier than ever. Iran kicked off the year by playing war games near the Straits of Hormuz. This was perceived as a potential threat to this strategic shipping lane. By February 8, oil reached $118.90/barrel. This sent gas prices to $3.85 by February 25. Since then, oil and gas prices have leveled off. Prices are expected to average $105 barrel for Brent crude oil in 2013.
This is lower than 2012's average of $112 per barrel. The EIA bravely forecasts the average price of oil will fall even more in 2014 to $99 per barrel. Why? U.S. pipeline capacity will be expanded, allowing greater supply. Demand will be only mildly supported by moderate economic growth in the U.S. The EIA forecasts growth to be at the low end of the healthy 2-3% growth rate. (Source: EIA, Short-Term Forecast)

Reasons for High Oil Prices in 2012:

Oil prices started rising much sooner in 2012 than they did in 2011. The price for WTI crude oil broke above $100 a barrel on February 13, 2012, two weeks earlier than in 2011. Rising oil prices drove gas prices above $3.50 a gallon that same week. Gas prices had already breached $3.50 a gallon on the East and West coasts in January.
By March, Brent Crude Oil (which is more expensive than WTI) peaked at $125 a barrel. It settled down to $95 a barrel in June, but rose $113.36 by August. Normally, oil prices drop in the fall and winter. However, commodities futures traders were bidding up oil prices to offset what the Fed's expansive monetary policy. They were betting the dollar would drop, which drives up oil prices. They were wrong about the dollar, but oil prices rose despite lower demand. (Source: Forbes, The Price of Oil Is the New Economic Spoiler, September 12, 2012)

People were concerned because gas and oil prices rose earlier than in the past. However, less and less of oil prices are due to supply and demand. More and more of it is based on the expectations of commodities markets.

Why Oil Prices Rose in 2011:

Crude oil prices reached a recent high of $113.93 on April 29, 2011. Prices had been increasing steadily since February 2009, when prices dropped to $39 a barrel. Prices hovered at a comfortable $70-$80 a barrel until late 2010. High oil prices translate to high gas prices. Petroleum is also an ingredient in fertilizer. This, combined with higher transportation costs, increases food prices. The forces driving high oil prices are similar to what happened when oil hit an all-time high in 2008.
The All-Time High Was $143.68 a Barrel:

Oil prices hit an all-time high of $143.68 a barrel in July 2008. This drove gas prices to $4.17 a gallon. Most news sources blamed this on surging demand from China and India, combined with decreasing supply from Nigeria and Iraq oil fields. However, even then this wasn't logical, since the economy was already in a recession. For more, see Gas Prices in 2008. (Source: BBC, Oil Price May Hit $200 a Barrel, May 7, 2008)
Supply and Demand Are Not Alone in Driving Up Oil Prices:

The price of oil is driven by much, much more than supply and demand. This was proven in 2008. Thanks to the recession, global demand in 2008 was actually down and global supply was up. Prices rose, nevertheless. Oil consumption decreased from 86.66 million barrels per day (bpd) in the fourth quarter 2007 to 85.73 million bpd in the first quarter of 2008. At the same time, supply increased from 85.49 to 86.17 million bpd.

According to the laws of supply and demand, prices should have decreased. Instead, they increased almost 25% in that time - from $87.79 to $110.21 a barrel. (Source: EIA. See Google Spreadsheet)

Commodities Trading Drove Up Oil Prices:

Why? Although the EIA pinned part of the blame on volatility in Venezuela and Nigeria, it warned of an influx of investment money into commodities markets. Investors were stampeding out of the falling real estate and stock markets. Instead, they diverted their funds to oil futures. This sudden surge drove up oil prices, creating a speculative bubble. (Source: EIA Short-Term Energy Outlook)
This bubble soon spread to other commodities. Investor funds swamped wheat, gold and other related futures markets. This speculation drove up food prices dramatically around the world. The result? Food riots in less-developed countries by people facing starvation. (Source: BBC News,Commodity Boom Continues to Roll, January 16, 2008; CNN, Riots, Instability Spread as Food Prices Skyrocket, February 18, 2008)

This explains why oil prices are lower today than they were in 2008, despite a healthier global economy and greater worldwide demand for oil. Today, there are many more outlets for investment funds. In 2008, the global markets were so risky and uncertain, investors turned from stocks, bonds and even housing to the U.S. dollar, gold and oil. In 2012, despite uncertainty around the eurozone crisis, investors had many more options. The stock market rose, the bond market was less risky, and even housing improved. Although the global market is still in slow growth mode in 2013, it is stabilizing, and that means oil prices shouldn't break the peak hit in 2008.

High oil prices are also driven by a decline in the dollar. Most oil contracts around the world are traded in dollars. As a result, oil-exporting countries usually peg their currency to the dollar. When the dollar declines, so do their oil revenues, but their costs go up. Therefore, OPEC must raise the price of oil to maintain its profit margins and keep costs of imported goods constant. (Source: USA Today,Oil Briefly Spurts Near $104 per Barrel, March 3, 2008)

However, OPEC doesn't want oil prices too high, or alternative fuel sources start to look good. OPEC has said its target price for oil is between $70-$80 a barrel. In 2008, Saudi Arabia announced it would increase supply. This was one reason prices started to drop. (See High Oil Prices Caused by Wall Street, Not OPEC) (Article updated March 11, 2013)

More and more of it is based on the expectations of commodities markets.

Expectations of future supply?

You're shitting me.

 

[eagle1462010]

You can Fuck Off too Todd.

You are also ignoring the posts showing Demand down and Prices going up.

You ignore Investors having a Feeding Frenzy and driving prices up as normal business.

If you believe Speculation didn't bring a Barrel of oil up to 147 a Barrel when Demand was down 20% then I have some Ocean Front Property in Arizona for sale.

Wanna buy it?

I work in a Refinery. Have for a decade. I know a lot of very smart people who know a hell of a lot more than you do about this business. And Fing know speculation drives up the prices.

While there are more reasons like the value of the dollar, which is the World's Reserve Currency, Speculation by trading VAST VOLUMES TO RAISE PRICES has happened and ................

Your example is ONLY 1 TRADE REGARDLESS OF THE SIZE.

Wall Street Traders make a lot of money buying Trading More, and can make a lot of money making a lot of trades.

You are BS, and so are your Fing Market Fundamentals crap.

The only time our prices went up so fast was during the Carter Admin and the Iranian Hostage Crisis. Nothing else compares, and I showed that graph.

Yet the dollar a gallon price EXPLODED IN TANDUM WITH THE MARKET INCREASES up to the crash in 2008.

After the crash the price of a gallon of gas dropped significantily. WHY THE HELL DID THAT HAPPEN IF THE MARKETS DON'T MATTER FOOL.

You know the markets drive the prices in a lot of ways. and you aren't producing any articles to counter what I'm saying.

Even after showing Investors saying the same damn thing I've been saying.

This occurred because of taking regulation off trading Commodities after the Graham Leahy Act. Which again I posted a while back.

 

[eagle1462010]

Four US banks hold a staggering 95.9% of U.S. derivatives: The $600 Trillion Time Bomb That?s Set to Explode | Global Research

I hope none of these four companies pass gas again on their DERIVATIVES. Oh, I know I know I know............It's ONLY A NOMINAL VALUE when we talk about DERIVATIVES holdings from 4 Banks that own nearly 600 TRILLION IN NOMINAL VALUE.

But it's no BIG DEAL RIGHT MR. WALLSTREET AND OTHERS. They are just HOLDING THIS FICTIONAL PAPER BS. No big deal at all even though these NOMINAL VALUES GO OUT OF THE SOLAR SYSTEM.

No big deal guys that they TRADE with only a SMALL FRACTION OF THEIR BETS.

This is ALL BS and YOU GUYS KNOW IT NO MATTER WHAT YOU TYPE.

Hey, by the way, What was Greece hiding before they crashed and why did GOLDMAN SACHS help them cook the books?

That story turned out real well for Greece didn't it?

What was Greece hiding before they crashed

Greece spends way too much. Obama wants us to spend way too much.
That story is going to turn out real well for us, isn't it?

No shit. Who the hell said I like Obama? This OP is about regulating the Markets and bringing back Safe Guards that prevent Wall Street from Raping us to make a quick profit.

Look at every Recession and you'll see a Bubble created by these Aholes. Whether it be Y2k, the Dot.com, or Enron.

Another thing you haven't mentioned a thing about the ENRON LOOP HOLE. Which I'm specifically targetting here.

 

[eagle1462010]

Why Oil Prices Are So High

In 2013, oil prices started rising in January, earlier than ever. Iran kicked off the year by playing war games near the Straits of Hormuz. This was perceived as a potential threat to this strategic shipping lane. By February 8, oil reached $118.90/barrel. This sent gas prices to $3.85 by February 25. Since then, oil and gas prices have leveled off. Prices are expected to average $105 barrel for Brent crude oil in 2013.
This is lower than 2012's average of $112 per barrel. The EIA bravely forecasts the average price of oil will fall even more in 2014 to $99 per barrel. Why? U.S. pipeline capacity will be expanded, allowing greater supply. Demand will be only mildly supported by moderate economic growth in the U.S. The EIA forecasts growth to be at the low end of the healthy 2-3% growth rate. (Source: EIA, Short-Term Forecast)

Reasons for High Oil Prices in 2012:

Oil prices started rising much sooner in 2012 than they did in 2011. The price for WTI crude oil broke above $100 a barrel on February 13, 2012, two weeks earlier than in 2011. Rising oil prices drove gas prices above $3.50 a gallon that same week. Gas prices had already breached $3.50 a gallon on the East and West coasts in January.
By March, Brent Crude Oil (which is more expensive than WTI) peaked at $125 a barrel. It settled down to $95 a barrel in June, but rose $113.36 by August. Normally, oil prices drop in the fall and winter. However, commodities futures traders were bidding up oil prices to offset what the Fed's expansive monetary policy. They were betting the dollar would drop, which drives up oil prices. They were wrong about the dollar, but oil prices rose despite lower demand. (Source: Forbes, The Price of Oil Is the New Economic Spoiler, September 12, 2012)

People were concerned because gas and oil prices rose earlier than in the past. However, less and less of oil prices are due to supply and demand. More and more of it is based on the expectations of commodities markets.

Why Oil Prices Rose in 2011:

Crude oil prices reached a recent high of $113.93 on April 29, 2011. Prices had been increasing steadily since February 2009, when prices dropped to $39 a barrel. Prices hovered at a comfortable $70-$80 a barrel until late 2010. High oil prices translate to high gas prices. Petroleum is also an ingredient in fertilizer. This, combined with higher transportation costs, increases food prices. The forces driving high oil prices are similar to what happened when oil hit an all-time high in 2008.
The All-Time High Was $143.68 a Barrel:

Oil prices hit an all-time high of $143.68 a barrel in July 2008. This drove gas prices to $4.17 a gallon. Most news sources blamed this on surging demand from China and India, combined with decreasing supply from Nigeria and Iraq oil fields. However, even then this wasn't logical, since the economy was already in a recession. For more, see Gas Prices in 2008. (Source: BBC, Oil Price May Hit $200 a Barrel, May 7, 2008)
Supply and Demand Are Not Alone in Driving Up Oil Prices:

The price of oil is driven by much, much more than supply and demand. This was proven in 2008. Thanks to the recession, global demand in 2008 was actually down and global supply was up. Prices rose, nevertheless. Oil consumption decreased from 86.66 million barrels per day (bpd) in the fourth quarter 2007 to 85.73 million bpd in the first quarter of 2008. At the same time, supply increased from 85.49 to 86.17 million bpd.

According to the laws of supply and demand, prices should have decreased. Instead, they increased almost 25% in that time - from $87.79 to $110.21 a barrel. (Source: EIA. See Google Spreadsheet)

Commodities Trading Drove Up Oil Prices:

Why? Although the EIA pinned part of the blame on volatility in Venezuela and Nigeria, it warned of an influx of investment money into commodities markets. Investors were stampeding out of the falling real estate and stock markets. Instead, they diverted their funds to oil futures. This sudden surge drove up oil prices, creating a speculative bubble. (Source: EIA Short-Term Energy Outlook)
This bubble soon spread to other commodities. Investor funds swamped wheat, gold and other related futures markets. This speculation drove up food prices dramatically around the world. The result? Food riots in less-developed countries by people facing starvation. (Source: BBC News,Commodity Boom Continues to Roll, January 16, 2008; CNN, Riots, Instability Spread as Food Prices Skyrocket, February 18, 2008)

This explains why oil prices are lower today than they were in 2008, despite a healthier global economy and greater worldwide demand for oil. Today, there are many more outlets for investment funds. In 2008, the global markets were so risky and uncertain, investors turned from stocks, bonds and even housing to the U.S. dollar, gold and oil. In 2012, despite uncertainty around the eurozone crisis, investors had many more options. The stock market rose, the bond market was less risky, and even housing improved. Although the global market is still in slow growth mode in 2013, it is stabilizing, and that means oil prices shouldn't break the peak hit in 2008.

High oil prices are also driven by a decline in the dollar. Most oil contracts around the world are traded in dollars. As a result, oil-exporting countries usually peg their currency to the dollar. When the dollar declines, so do their oil revenues, but their costs go up. Therefore, OPEC must raise the price of oil to maintain its profit margins and keep costs of imported goods constant. (Source: USA Today,Oil Briefly Spurts Near $104 per Barrel, March 3, 2008)

However, OPEC doesn't want oil prices too high, or alternative fuel sources start to look good. OPEC has said its target price for oil is between $70-$80 a barrel. In 2008, Saudi Arabia announced it would increase supply. This was one reason prices started to drop. (See High Oil Prices Caused by Wall Street, Not OPEC) (Article updated March 11, 2013)

More and more of it is based on the expectations of commodities markets.

Expectations of future supply?

You're shitting me.

No shit again. So they speculate the price, trade the hell out of it, and prices go up WITHOUT A DAMN THING HAPPENING.

Which is why before 2000 they couldn't do this shit. They could be limited on the number of trades so they couldn't JACK UP THE PRICES.

 

[Toddsterpatriot]

You can Fuck Off too Todd.

You are also ignoring the posts showing Demand down and Prices going up.

You ignore Investors having a Feeding Frenzy and driving prices up as normal business.

If you believe Speculation didn't bring a Barrel of oil up to 147 a Barrel when Demand was down 20% then I have some Ocean Front Property in Arizona for sale.

Wanna buy it?

I work in a Refinery. Have for a decade. I know a lot of very smart people who know a hell of a lot more than you do about this business. And Fing know speculation drives up the prices.

While there are more reasons like the value of the dollar, which is the World's Reserve Currency, Speculation by trading VAST VOLUMES TO RAISE PRICES has happened and ................

Your example is ONLY 1 TRADE REGARDLESS OF THE SIZE.

Wall Street Traders make a lot of money buying Trading More, and can make a lot of money making a lot of trades.

You are BS, and so are your Fing Market Fundamentals crap.

The only time our prices went up so fast was during the Carter Admin and the Iranian Hostage Crisis. Nothing else compares, and I showed that graph.

Yet the dollar a gallon price EXPLODED IN TANDUM WITH THE MARKET INCREASES up to the crash in 2008.

After the crash the price of a gallon of gas dropped significantily. WHY THE HELL DID THAT HAPPEN IF THE MARKETS DON'T MATTER FOOL.

You know the markets drive the prices in a lot of ways. and you aren't producing any articles to counter what I'm saying.

Even after showing Investors saying the same damn thing I've been saying.

This occurred because of taking regulation off trading Commodities after the Graham Leahy Act. Which again I posted a while back.

You are also ignoring the posts showing Demand down and Prices going up.


World demand went down? Show me.

I work in a Refinery. Have for a decade

More oxygen, less fumes. You'll sound less stupid.

The only time our prices went up so fast was during the Carter Admin and the Iranian Hostage Crisis.

Maybe you can explain why?

 

[Toddsterpatriot]

Four US banks hold a staggering 95.9% of U.S. derivatives: The $600 Trillion Time Bomb That?s Set to Explode | Global Research

I hope none of these four companies pass gas again on their DERIVATIVES. Oh, I know I know I know............It's ONLY A NOMINAL VALUE when we talk about DERIVATIVES holdings from 4 Banks that own nearly 600 TRILLION IN NOMINAL VALUE.

But it's no BIG DEAL RIGHT MR. WALLSTREET AND OTHERS. They are just HOLDING THIS FICTIONAL PAPER BS. No big deal at all even though these NOMINAL VALUES GO OUT OF THE SOLAR SYSTEM.

No big deal guys that they TRADE with only a SMALL FRACTION OF THEIR BETS.

This is ALL BS and YOU GUYS KNOW IT NO MATTER WHAT YOU TYPE.

Hey, by the way, What was Greece hiding before they crashed and why did GOLDMAN SACHS help them cook the books?

That story turned out real well for Greece didn't it?

What was Greece hiding before they crashed

Greece spends way too much. Obama wants us to spend way too much.
That story is going to turn out real well for us, isn't it?

No shit. Who the hell said I like Obama? This OP is about regulating the Markets and bringing back Safe Guards that prevent Wall Street from Raping us to make a quick profit.

Look at every Recession and you'll see a Bubble created by these Aholes. Whether it be Y2k, the Dot.com, or Enron.

Another thing you haven't mentioned a thing about the ENRON LOOP HOLE. Which I'm specifically targetting here.

Bubbles happen. Look at history.

You think regulation can stop it? LOL!

Another thing you haven't mentioned a thing about the ENRON LOOP HOLE.

Please, let's focus on this for a while. I'd love to see your feelings on this topic.

 

[Toddsterpatriot]

Why Oil Prices Are So High

In 2013, oil prices started rising in January, earlier than ever. Iran kicked off the year by playing war games near the Straits of Hormuz. This was perceived as a potential threat to this strategic shipping lane. By February 8, oil reached $118.90/barrel. This sent gas prices to $3.85 by February 25. Since then, oil and gas prices have leveled off. Prices are expected to average $105 barrel for Brent crude oil in 2013.
This is lower than 2012's average of $112 per barrel. The EIA bravely forecasts the average price of oil will fall even more in 2014 to $99 per barrel. Why? U.S. pipeline capacity will be expanded, allowing greater supply. Demand will be only mildly supported by moderate economic growth in the U.S. The EIA forecasts growth to be at the low end of the healthy 2-3% growth rate. (Source: EIA, Short-Term Forecast)

Reasons for High Oil Prices in 2012:

Oil prices started rising much sooner in 2012 than they did in 2011. The price for WTI crude oil broke above $100 a barrel on February 13, 2012, two weeks earlier than in 2011. Rising oil prices drove gas prices above $3.50 a gallon that same week. Gas prices had already breached $3.50 a gallon on the East and West coasts in January.
By March, Brent Crude Oil (which is more expensive than WTI) peaked at $125 a barrel. It settled down to $95 a barrel in June, but rose $113.36 by August. Normally, oil prices drop in the fall and winter. However, commodities futures traders were bidding up oil prices to offset what the Fed's expansive monetary policy. They were betting the dollar would drop, which drives up oil prices. They were wrong about the dollar, but oil prices rose despite lower demand. (Source: Forbes, The Price of Oil Is the New Economic Spoiler, September 12, 2012)

People were concerned because gas and oil prices rose earlier than in the past. However, less and less of oil prices are due to supply and demand. More and more of it is based on the expectations of commodities markets.

Why Oil Prices Rose in 2011:

Crude oil prices reached a recent high of $113.93 on April 29, 2011. Prices had been increasing steadily since February 2009, when prices dropped to $39 a barrel. Prices hovered at a comfortable $70-$80 a barrel until late 2010. High oil prices translate to high gas prices. Petroleum is also an ingredient in fertilizer. This, combined with higher transportation costs, increases food prices. The forces driving high oil prices are similar to what happened when oil hit an all-time high in 2008.
The All-Time High Was $143.68 a Barrel:

Oil prices hit an all-time high of $143.68 a barrel in July 2008. This drove gas prices to $4.17 a gallon. Most news sources blamed this on surging demand from China and India, combined with decreasing supply from Nigeria and Iraq oil fields. However, even then this wasn't logical, since the economy was already in a recession. For more, see Gas Prices in 2008. (Source: BBC, Oil Price May Hit $200 a Barrel, May 7, 2008)
Supply and Demand Are Not Alone in Driving Up Oil Prices:

The price of oil is driven by much, much more than supply and demand. This was proven in 2008. Thanks to the recession, global demand in 2008 was actually down and global supply was up. Prices rose, nevertheless. Oil consumption decreased from 86.66 million barrels per day (bpd) in the fourth quarter 2007 to 85.73 million bpd in the first quarter of 2008. At the same time, supply increased from 85.49 to 86.17 million bpd.

According to the laws of supply and demand, prices should have decreased. Instead, they increased almost 25% in that time - from $87.79 to $110.21 a barrel. (Source: EIA. See Google Spreadsheet)

Commodities Trading Drove Up Oil Prices:

Why? Although the EIA pinned part of the blame on volatility in Venezuela and Nigeria, it warned of an influx of investment money into commodities markets. Investors were stampeding out of the falling real estate and stock markets. Instead, they diverted their funds to oil futures. This sudden surge drove up oil prices, creating a speculative bubble. (Source: EIA Short-Term Energy Outlook)
This bubble soon spread to other commodities. Investor funds swamped wheat, gold and other related futures markets. This speculation drove up food prices dramatically around the world. The result? Food riots in less-developed countries by people facing starvation. (Source: BBC News,Commodity Boom Continues to Roll, January 16, 2008; CNN, Riots, Instability Spread as Food Prices Skyrocket, February 18, 2008)

This explains why oil prices are lower today than they were in 2008, despite a healthier global economy and greater worldwide demand for oil. Today, there are many more outlets for investment funds. In 2008, the global markets were so risky and uncertain, investors turned from stocks, bonds and even housing to the U.S. dollar, gold and oil. In 2012, despite uncertainty around the eurozone crisis, investors had many more options. The stock market rose, the bond market was less risky, and even housing improved. Although the global market is still in slow growth mode in 2013, it is stabilizing, and that means oil prices shouldn't break the peak hit in 2008.

High oil prices are also driven by a decline in the dollar. Most oil contracts around the world are traded in dollars. As a result, oil-exporting countries usually peg their currency to the dollar. When the dollar declines, so do their oil revenues, but their costs go up. Therefore, OPEC must raise the price of oil to maintain its profit margins and keep costs of imported goods constant. (Source: USA Today,Oil Briefly Spurts Near $104 per Barrel, March 3, 2008)

However, OPEC doesn't want oil prices too high, or alternative fuel sources start to look good. OPEC has said its target price for oil is between $70-$80 a barrel. In 2008, Saudi Arabia announced it would increase supply. This was one reason prices started to drop. (See High Oil Prices Caused by Wall Street, Not OPEC) (Article updated March 11, 2013)

More and more of it is based on the expectations of commodities markets.

Expectations of future supply?

You're shitting me.

No shit again. So they speculate the price, trade the hell out of it, and prices go up WITHOUT A DAMN THING HAPPENING.

Which is why before 2000 they couldn't do this shit. They could be limited on the number of trades so they couldn't JACK UP THE PRICES.

No shit again. So they speculate the price, trade the hell out of it, and prices go up WITHOUT A DAMN THING HAPPENING.

Nothing happened? Market expectations changed. What do you think that means?

they couldn't JACK UP THE PRICES.