: Oil prices result of speculation

Discussion in 'Politics' started by Revmitchell, May 25, 2008.

  1. Revmitchell

    Revmitchell
    Expand Collapse
    Well-Known Member

    Joined:
    Feb 18, 2006
    Messages:
    38,278
    Likes Received:
    780
    May 23, 2008 (The Free Press - McClatchy-Tribune Information Services via COMTEX) -- The intertwined fragility of our economic system was never more apparent than with today's oil prices. With the economy reeling from a weak dollar and housing and credit problems, institutional investors shifted money from stocks and currency to commodities resulting in price spikes of everything from oil to wheat.

    This speculation was identified as the chief villain for rising food and energy costs during Senate hearings this week. The commodities market, once dominated by just a handful of investors and producers, now has become a huge full-fledged investment arena with a profound effect on the day-to-day essentials of everyday people.

    One former hedge fund trader said the trading strategies equate to "virtual hoarding via the commodities futures markets." Investors are "buying up essential items that exist in limited quantities for the sole purpose of reaping speculative profits." This speculation pulls away from the fundamentals of supply and demand. Adam Smith's observation on basics of capitalism presupposes that supply can be controlled when demand is there. But future prices now are based not on supply and demand but speculation based on observations or fear.


    Article Here
     
  2. Crabtownboy

    Crabtownboy
    Expand Collapse
    Well-Known Member

    Joined:
    Feb 12, 2008
    Messages:
    16,609
    Likes Received:
    157
    This is the way Capitalism works. Are you for it or against it?
     
  3. poncho

    poncho
    Expand Collapse
    Banned

    Joined:
    Mar 30, 2004
    Messages:
    19,657
    Likes Received:
    128
    There's more than one way to skin the middle class I reckon.
     
  4. betterthanideserve

    betterthanideserve
    Expand Collapse
    New Member

    Joined:
    Aug 16, 2007
    Messages:
    319
    Likes Received:
    0
    Ever heard of market manipulation?
    or Collusion?(if mis-spelled please forgive me).
    Things are coming along as planned,and it is useless to expect anything else .You see they love money and will do anything and I mean anything to get all they can,so please don't lay the "thats the way capitalism works"bunk on too thick,cause there isn't many folks buying it anymore.
    Understand this please.....they are sticking to the plan,to bring america to its knees financially,morally,and governmentally,any way they can they just don't want you going to your spiritual knees cause then they lose!
    So once again open your eyes and see what they have in store for this nation,and this world.
     
  5. hillclimber1

    hillclimber1
    Expand Collapse
    New Member

    Joined:
    Sep 10, 2006
    Messages:
    2,447
    Likes Received:
    0
    Very interesting article, pointing to greed knowing no bounds.
     

Share This Page

Loading...