Back in the Spring of 2008, before Republican economic policies brought the economy down, the price of oil skyrocketed. At the time I said that the prices did not reflect the natural market forces of supply and demand, but were inflated by speculation. The collapse into the Republican recession proved me right, because money for speculation dried up and prices plummeted. Prices are going up again, and the unrest in the middle east is not a big enough factor to explain the increase, especially when the Banksters are speculating again, armed with free Bernanke bucks.
As the CFTC struggles to gain its footing on the path to regulating oil speculation and hopefully tamping down price volatility and manipulation, the debate over the true cause of volatility continues. Groups led by petroleum retailers like heating oil dealers and businesses that rely heavily on petroleum products like commercial airlines continue to forcefully argue that out-of-control speculation is driving up oil prices. Financial interests like investment banks and commodity markets continue to deny that speculative activity has any hand in inflating or destabilizing oil prices.
A veteran oil trader interviewed by CNBC this week offered his two cents in the debate in no uncertain terms: the new class of speculative investors in oil markets is the main cause of oil prices spikes since 2000. Dan Dicker has traded oil products at the New York Mercantile Exchange for 25 years, and “put investment banks first” on his list of those responsible for rising oil prices during his brief interview with CNBC. Investment banks, with billions of dollars of capital at their disposal, have become major participants in oil trading since the Commodity Futures Modernization Act of 2000 opened up the markets to them and other speculators. According to Dicker, the sheer volume of oil-based investment products purchased by investment banks leads directly to Americans paying more for gasoline and heating oil:
The three largest investment banks trade in oil as well and make a couple of billion dollars each trading oil a year, which directly comes out of the pockets of consumers.
… [emphasis added]
Inserted from <Heatingoil.com>
The Banksters may deny it, but they lie. They have proven that they will even lie to their own customers, selling them worthless securities while hedging against them. Frankly, none of these greedy criminals or their Republican lackeys should be allowed to sit on the throne without a regulator present to count the sheets of TP used.
Ed Schultz has more information to offer.
Visit msnbc.com for breaking news, world news, and news about the economy
I’m looking forward to Ed’s special report next week, and would not be surprised if it becomes the basis of more articles here.
8 Responses to “Oil Prices Too High? Blame a Bankster!”
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It is an OUTRAGE what irresponsible and greedy speculators on Wall Street are doing to oil prices! This is economic sabotage, and the bastards ought to be made to pay for their market manipulation!
And, if they sabotage the economy, they will blame it on O’bama.
This infuriates me. I read it three times and each time I get more angry. Thanks Tom. Very informative, albeit frustrating, read.
Hiya Mike. I wish I had some encouragement to offer, but as long as Geithner and Bernanke are in charge, this Democratic administration will model the Republicans.
I wish I could go to Wall Street and tell those investment bankers (and their stupid, lying, arrogant CEO’s) just what I think of their shitty practices that hurt poor and middle class Americans. I’d even use the mom voice. There needs to be more regulation and over sight of these assholes. 😡
Sic’em Lisa!! 😉
It would only require one eighteen month incarceration… just one, in a regular institution, and the little
darlings would all gain something they’ve missed their whole lives.A beating severe enough to knock the
sense of entitlement and impunity right out of their minds
Welcome, Ray! 🙂
As a prison volunteer, I don’t think banksters would do well there.