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#361928 - 09/22/08 12:35 PM
Oil Spikes $25 a barrel today
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Gay For Pay
Registered: 03/07/06
Posts: 1059
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I seem to remember in a previous thread where I talked about market manipulation of oil prices by speculators. But I'm sure this was just "supply and demand". Oh wait it was because of the sub prime mortgage crisis. Ahhh, that makes sense. Banks sell risky loans to the government and are gas prices go up. That totally makes sense. http://news.yahoo.com/s/ap/20080922/ap_on_bi_ge/oil_pricesThe article is too long to post.
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Honestly, I don't know...I'm torn. We haven't talked since AVN (other than the hearing in February)- Eric on Bree Olson
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#361929 - 09/22/08 12:44 PM
Re: Oil Spikes $25 a barrel today
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Porn Fucking Master
Registered: 02/23/05
Posts: 3724
Loc: Paddling my canoe in the wild
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Are you retarded? The first sentence of the article you linked to explains the manifold reasons for the historic price increase: Quote:
Oil prices spiked more than $25 a barrel Monday — the biggest one-day price jump ever — as anxiety over the government's $700 billion bailout plan, a weak dollar and an expiring crude contract ignited a dramatic rally.
If you can make it a little further down, the author also explains the conection to the banking crisis:
Quote:
The 15-nation euro rose to $1.4807 in afternoon trading, up from the $1.4470 on Friday. A weak greenback was a catalyst for the commodities boom of the past year, and analysts said large investment funds were expected to pour money back into the sector.
"That trade was very successful in past so if the dollar keeps weakening, a lot people are going to want to own hard assets like crude," said Andrew Lebow, senior vice president and broker at MF Global in New York.
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#361930 - 09/22/08 02:32 PM
Re: Oil Spikes $25 a barrel today
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Porn Jesus
Registered: 10/19/06
Posts: 9958
Loc: fortified
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Lakers in six Grizz. Lakers.In.Six 
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i just lock, load, and regret. - jamesn
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#361931 - 09/22/08 03:49 PM
Re: Oil Spikes $25 a barrel today
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Gay For Pay
Registered: 03/07/06
Posts: 1059
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Quote:
Are you retarded? The first sentence of the article you linked to explains the manifold reasons for the historic price increase:
Quote:
Oil prices spiked more than $25 a barrel Monday — the biggest one-day price jump ever — as anxiety over the government's $700 billion bailout plan, a weak dollar and an expiring crude contract ignited a dramatic rally.
If you can make it a little further down, the author also explains the conection to the banking crisis:
Quote:
The 15-nation euro rose to $1.4807 in afternoon trading, up from the $1.4470 on Friday. A weak greenback was a catalyst for the commodities boom of the past year, and analysts said large investment funds were expected to pour money back into the sector.
"That trade was very successful in past so if the dollar keeps weakening, a lot people are going to want to own hard assets like crude," said Andrew Lebow, senior vice president and broker at MF Global in New York.
My point is that oil prices are not driven by supply and demand they are driven by speculators. Each of the points you just posted support what I'm saying. Neither of those points are related to consumption, drilling, refineries being down, or any supply related issue. They are all related to speculators moving their money into oil to drive prices up, gain a quick profit and then they will sell. The end result is higher prices and inflation for the average consumer.
How is any of that retarded?
All of this points to why we need stricter controls on markets that impact regular people and enrich traders.
Now do you understand?
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Honestly, I don't know...I'm torn. We haven't talked since AVN (other than the hearing in February)- Eric on Bree Olson
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#361932 - 09/22/08 04:25 PM
Re: Oil Spikes $25 a barrel today
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Porn Jesus
Registered: 10/19/06
Posts: 9958
Loc: fortified
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She's right Grizz... But then again. Is she right?.
Tits or gtfo Blahhhh..
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i just lock, load, and regret. - jamesn
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#361933 - 09/22/08 05:05 PM
Re: Oil Spikes $25 a barrel today
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Porn Fucking Master
Registered: 02/23/05
Posts: 3724
Loc: Paddling my canoe in the wild
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I understand what you think you are saying, but it is still foolish.
Oil is a commodity and commodity prices fluctuate based on market conditions.
When market conditions suggest that the US dollar is circling the toilet bowl, people that own US dollars spend them to buy things that will hold their value so they can change them BACK into the US dollars when they need to spend some.
Since oil is a global commodity, the US has no power to control the market between a purchaser and seller who are not American. By artifically controlling the elastic global market, oil producers (like Kuwait) will simply sell their shit to other countries that do not limit the price for their products (like China).
Do you think the Chinese want to fuck with their economy just so the US can start moving towards the centrally planned economy the rest of the socialist countries have been dismantling for 20 years?
Stop taking shortcuts and fix the fucking problems.
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#361934 - 09/22/08 05:18 PM
Re: Oil Spikes $25 a barrel today
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Gay For Pay
Registered: 03/07/06
Posts: 1059
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There are 2 markets that dominate the global trading of oil. One in London and one in the US. Every country trades on those markets with other smaller markets hardly making a dent in the global price of oil. So, yes we can make a difference.
The Chinese have no interest in artificially inflating the price of oil because the are a consumer not a producer. They would be crippling their own burgeoning economy by doing so.
There are only 3 groups that want to spike the price on oil: Traders, oil companies and oil producing nations without privatized oil companies. Every other person on the planet is negatively impacted by speculators.
It is in the best interest of all of us to limit speculators in the oil markets. The problem (in pricing, not politics) is not in Kuwait selling to China it is in speculators with no interest in the actual oil but only in it's profits.
By limiting speculators in the oil market it forces them to move money in other places. For example, if they think the dollar is weak and want to pull out they would then turn into other markets. That would then enrich those markets and encourage growth and spending in that market. The end result would be a benefit to said industry and to the economy as a whole. Not just making the rich get richer and poor get poorer.
And there is nothing foolish about that.
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Honestly, I don't know...I'm torn. We haven't talked since AVN (other than the hearing in February)- Eric on Bree Olson
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#361935 - 09/22/08 06:28 PM
Re: Oil Spikes $25 a barrel today
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Porn Fucking Master
Registered: 02/23/05
Posts: 3724
Loc: Paddling my canoe in the wild
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Speculation is another word for investment. When the US gov't still believed in capitalism it encouraged people to buy something and sell it later for more money. When enough investors agree that the price of something is below its market value, the crowd runs in one direction and the price goes up precipitously.
Under your economic reform plan would it be OK for airlines to continue to hedge their fuel costs? What about the oil companies themselves? Who gets to pick which companies get to buy futures?
Substitute real estate for oil. As prices went up it should have become more difficult to buy a house, instead the government made it easier to speculate by loosening the money supply (low interest rates, deducting mortgage interest, Fanny and Freddy).
What led to the implosion of the mortgage market was the gov't egging on the investors rather than letting the markets run their course. It's much easier for the gov't bodies to blame the "Speculators" for fucking up the economy instead of their own stupidity.
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#361936 - 09/22/08 08:45 PM
Re: Oil Spikes $25 a barrel today
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Gay For Pay
Registered: 03/07/06
Posts: 1059
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The mortgage industry imploded due to lending to unqualified buyers. That's pretty simple to stop. This goes back to regulation. It wasn't Washington that egged these companies on. It was their own greed. And as we all now know, greed in an unregulated market leads to corruption. So my view is consistent. Solid and sensible oversight on markets.
As for who gets to trade in the markets, it's a good question. Your point on airlines is actually to my benefit. Airlines would practice sensible trading because lower fuel costs help their bottom line.
I would look to limit hedge funds and similar types of investment vehicles. Basically clear out the types that want to push the price up 40% then sell at a high. Those are types that are causing worldwide struggle to the benefit of the very few and the very rich.
It may not be pure capitalism but it is better for people like you and me.
_________________________
Honestly, I don't know...I'm torn. We haven't talked since AVN (other than the hearing in February)- Eric on Bree Olson
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#361938 - 01/15/09 11:47 AM
Re: Oil Spikes $25 a barrel today
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Gay For Pay
Registered: 03/07/06
Posts: 1059
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Not to gloat......but I will. Turns out I was 100% correct on oil speculators. http://www.cbsnews.com/stories/2009/01/08/60minutes/main4707770.shtmlCan somebody explain to me why gas prices have gone up recently while the price of oil is dropping like a rock?
_________________________
Honestly, I don't know...I'm torn. We haven't talked since AVN (other than the hearing in February)- Eric on Bree Olson
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#361939 - 01/15/09 11:56 AM
Re: Oil Spikes $25 a barrel today
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Porn Fucking Master
Registered: 05/18/06
Posts: 3555
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i blame gunker.
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#361940 - 01/15/09 12:55 PM
Re: Oil Spikes $25 a barrel today
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Max Hardcore Prison Bitch
Registered: 06/27/06
Posts: 323
Loc: Back in Gia's camera case
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Gas companies have to maintain their profit margin regardless of the price of oil.
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#361941 - 01/15/09 03:50 PM
Re: Oil Spikes $25 a barrel today
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Whoremaster
Registered: 06/22/07
Posts: 2656
Loc: Polekatz, Rte 43
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Oil going up at this point would generally be interpreted as a sign that the economy is recovering (more worldwide demand).
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