NAncy pelosi thinks rising gasoline price is due to speculators

[Brass]

Quote from MKTrader:

And the speculative element is related to cheap money. That was the case in Tulipmania and is today. Pelosi totally misses this and blames the wrong source.

Oh, so you want to tighten the money supply right now, eh?

I was never a fan of Greenspan, or Bernanke for that matter, after he assumed the position in 2006. I though they pandered to the markets and reduced rates whenever anyone sneezed. But that was before the economic crisis of 2008 (to which the loose money contributed). However, when the economy was on the precipice of a crisis unlike any seen in generations, well, then was the time for loose money. And the economy, while improving, is still not quite where it needs to be.

Now let us consider. You want to tighten the money supply right now, even though it is an essential component of a delicate economic recovery presently underway. Meanwhile, you don't want to raise taxes on the rich because it could hurt the economy? That would be like talking out of both sides of your mouth, wouldn't it?

 

[rew]

Quote from Free Thinker:

can i help you. would you like to borrow a gun?


Goldman estimated in a research note on March 21 that every million barrels of oil held by speculators contributed to an 8 to 10 cent per barrel rise in the oil price.

As unrest spread in North Africa and the Middle East, investors accumulated the equivalent of almost 100 million barrels of oil between mid-February and late March on top of their existing positions, adding approximately $10 to the ‘risk premium’, Goldman said.

Using Goldman’s 8- to 10-cent estimates and data on speculators’ positions from the U.S. Commodity Futures Trading Commission, Reuters calculated that as of last Tuesday, the total speculative premium in U.S. crude oil was between $21.40 and $26.75 a barrel, or about a fifth of last Tuesday’s price. The UK’s Financial Services Authority (FSA) does not publish trader data on Brent.

Goldman Sachs disputed the Reuters calculation on speculative premium.

http://www.cbsnews.com/8301-505123_...that-speculation-drives-oil-prices-listen-up/


As Goldman makes clear, this view is implausible. Mounting evidence -- and recent history -- suggest that crude oil prices are increasingly determined by investors betting on which way prices are moving, rather than on economic fundamentals.

Speculators are holding oil because they are betting on a war with Iran. If that war happens, it will be a very good thing that speculators did that because they will then sell their oil -- at a high price, but better than having no oil at all. (In other words, without speculators oil would be cheaper now but after a war starts the price will spike up even more than if there were no speculators.) If there is no war then the speculators bet wrong and will lose money, as they should.

It amazes me how many people post here at "elite trader" and don't recognize the legitimate social purpose of speculation.

Now why is everybody worried about a war with Iran? Because of the politicians here in American pretty much promising such a war. And Nancy Pelosi is no better on that issue than the Republicans.

http://www.informationclearinghouse.info/article20081.htm

 

[futurecurrents]

Quote from MKTrader:

And the speculative element is related to cheap money. That was the case in Tulipmania and is today. Pelosi totally misses this and blames the wrong source.

Yet all the experts say it partly due to speculation. So she's not wrong. I don't know why some here seem to overlook this basic point. Why is that?

 

[Ricter]

Quote from futurecurrents:

Yet all the experts say it partly due to speculation. So she's not wrong. I don't know why some here seem to overlook this basic point. Why is that?

Because speculation can't be blamed on Obama.

 

[Ricter]

Quote from MKTrader:

And the speculative element is related to cheap money. That was the case in Tulipmania and is today. Pelosi totally misses this and blames the wrong source.

Guns don't kill people, people kill people, right?

 

[murray t turtle]

Quote from foo:

Two can play this game......

Gasoline Prices Are Not Rising, the Dollar Is Falling

http://www.forbes.com/sites/louiswo...-prices-are-not-rising-the-dollar-is-falling/

==========
Foo-Trend
I think you know more about co... spreads than me.
But that statement of yours which is a title of the mag article, frankly seems to be a''rabbit trail'' to deflect attention from specs.

Seen a gas chart/trend in euros??, specs there/jackin it up also. I spec in plenty of stuff also ;
but even a stopped clock like Nancy is right 2 times per day.LOL

Bless the bears in gasoline [[ a countertrend statement.]]

 

[futurecurrents]

Quote from Ricter:

Because speculation can't be blamed on Obama.

Bingo !

 

[nutmeg]

Quote from Ricter:

Because speculation can't be blamed on Obama.

I agree also, "speculators" are a third person boogeyman.

 

[rew]

Quote from Ricter:

Guns don't kill people, people kill people, right?

Right. No gun ever stood on its hind legs and killed somebody.

 

[tomdavis]

Quote from rew:

Right. No gun ever stood on its hind legs and killed somebody.

Some guns are so smart they know how to pull their own triggers. Those are the ones you really have to watch for.