Boone Pickens & Those Stealing From Consumers (& Investors/Traders) Should Be Hung

Quote from ByLoSellHi:

That's a fantastic, intelligent and really compelling response.

Your specific reference to the numbers cited in the original article is especially illuminating.

The one thing the oil bulls all seem to ignore are that actual numbers involved in the story of the supply/demand situation with crude oil.

It's almost as if they're avoiding the actual statistics intentionally.

As to my general thesis about the damage the (artificially high) price of oil is doing to the U.S. economy:

Direct quotes for Soros:

Soros laid some of the blame on recent oil price rises on commodity index funds, which only buy oil contracts, helping to push prices higher.

Not `Legitimate'

``Commodity indexes are not a legitimate asset class,'' he said. He added that raising margin requirements would not affect index trading but could function to limit speculation.

``The rise in oil prices aggravates the prospects for a recession.''

http://www.bloomberg.com/apps/news?pid=20601213&sid=aMUH3KgAlIfc&refer=home


But you're probably sharper than Soros. You're certainly more eloquent.
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I agree with Soros there is some speculative demand in oil, probably $10-20 worth. However, for him to say that commodities are not a legitimate asset class is a pure personal opinion on his part. It is also extremely hypocritical - Soros has speculated on oil in both directions many times in the past. He has also speculated on the currencies of sovereign nations - if commodities are not a legitimate investment asset class, then currencies are not either.

So, considering that Soros's comment is hypocritical, pure personal opinion, disputed by a large swathe of the financial and academic world, and in any case totally irrelevant to whether or not funds have the right to invest in commodities, I don't really see it holding much sway.

Let us also not ignore Soros's comments that the oil price rise is mostly down to supply & demand factors other than speculation.
 
Quote from ttowntrader:

Does anyone think Soros may have his own motives? :-p
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Yes I do. We all, bottom line, have our own motives, consciously or even subconsciously.

Soros outside his own speciality in money making has, if anything, a record of unbalanced opinions.

And it is amusing that Soros as an arch speculator should claim high oil prices will cause a recession. If there was ever a serious, planned and legislated attempt by USA and European governments to move to a wholly or largely non-oil economy, the economic stimulus would preclude any recession.
 
Correct me if I am wrong, but at the expiry of the futures contract, the speculator holding a contract has two choices- take delivery of X barrels of oil or sell the contract to someone who will, possibly at a loss if they aren't willing to meet their price.

If you want to claim that rampant speculation is driving prices higher, you have to show me where speculators are taking delivery and stockpiling the stuff. Otherwise, they have to sell the contracts to consumers of the resource.

Whats with the chart in the first post? It seems to show trading volume vs consumer demand. All it takes is one contract changing hands more than once for the former to be larger than the latter.
 
politicians dont care about facts, they are biased to whats convenient to them. I predict that between now and 2016 jim rogers will have to testify before congress to clarify his 'role' in 'increasing living costs of hard working americans' by promoting comm as asset class and his fund
 
Quote from Daal:

politicians dont care about facts, they are biased to whats convenient to them. I predict that between now and 2016 jim rogers will have to testify before congress to clarify his 'role' in 'increasing living costs of hard working americans' by promoting comm as asset class and his fund
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You're onto something.

Several posts ago it was asked "what's Soros motivation in this?"

Well, it's kind of like a twofer.
1 deflect attention from huge specs like himself.
2 pin the blame on comm index funds which, incidentally, would nail his nemesis, jim rogers.

Jim Rogers doesn't have it in for soros, but boy does soros have it in for rogers.
 
Yes, because members of the US House of Representatives are bastions of honesty and fonts of both financial and legal wisdom.

Again, if traders were "Gaming" the market, we would see stock piling. Why is it so hard to believe that production simply hasn't kept pace with demand due to under investment in infrastructure? Or that suppliers (ie OPEC) see value in reducing supply to drive prices higher?


Quote from stock777:

06/05/2008 11:34 US Rep: Biggest Trading Houses 'Gaming The Oil Market'


case closed.

perp walks soon
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Just because you are unwilling to pay it doesn't mean others aren't. Again, these "speculators", at the end of the contract period, are having no trouble finding consumers willing to buy out their contracts. If they did have trouble, prices would fall or speculators would start taking delivery.

If the sky-rocketing price of liquified dinosaurs gets us to invest in some alternate/renewable energy technology, then our economy and all of human kind is better off for it (unless you are in the tiny minority of people who are Saudi princes).

Why does recognizing the reality of our situation make me a "shmuck"?


Quote from stock777:

genius, so you're saying any price is ok since there are some fundamental factors.

150
200
300


shmuck.
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Quote from stock777:
genius, so you're saying any price is ok since there are some fundamental factors.
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WE NEED PRICE CONTROLS ASAP! OIL FIRMS MUST BE SEIZED AND NATIONALIZED!

communism.jpg
 
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