Obama vows crackdown on energy speculators

[murray t turtle]

Quote from brocklanders:

This will only drive the majority of the oil trade overseas, beyond US control. Oil is a world-wide market...duh.

Which non-US futures exchange will benefit the most from this type of policy? My guess is Dubai.

=====================
May happen that way,BrookL;
may not,US isn't king anymore anyway.

It's likely what ever way it goes;
Morgan Stanley will be stopped from grinding the faces of the poor in the oil markets.BP got fined $300 million in propane

And the oil companies like XOM,COP.......;
should get plenty of tax breaks,,
price trend is still up regardless of futures market margins, which should be lowered.
XOM is one of the few oil companies to give free air around here.

 

[asap]

Quote from bullmarket79:

Impose a 1% tax on every financial transaction. That should clean up the mess and pay off the debts the republicans have saddled usa with.

no that would dry up the markets and throw america into a epic depression. fortunately, the world would tumble as well and as a result oil would tank to the mid 20's but at the expense of worldwide poverty and famine.

roll the dice.

 

[Lucrum]

"Obama vows crackdown on energy speculators"

While he's at it he apparently also plans to crack down on capitalism as well.

 

[walter4]

Quote from Lucrum:

"Obama vows crackdown on energy speculators"

While he's at it he apparently also plans to crack down on capitalism as well.

"I think everyone believes there's too much speculation in the oil markets," said New Jersey Gov. Jon Corzine, an Obama ally who announced the proposals in a conference call with reporters. "A lot of the price of oil, I think, people put at the doorstep of speculators bidding up and holding supplies off the market."

Corzine said Obama's plan aims to close the so-called Enron loophole, which exempts some energy speculators who trade electronically from U.S. regulation. It takes its name from the now-collapsed energy firm that benefited from the law.

According to New Jersey Governor Jon Corzine, a former boss of Wall Street titan Goldman Sachs, the real price of oil based on the laws of supply and demand should be 60-80 dollars a barrel -- rather than nearly 140 dollars."

 

[flytiger]

Quote from Lucrum:

"Obama vows crackdown on energy speculators"

While he's at it he apparently also plans to crack down on capitalism as well.

Bingo. think about it. Fidel Obama

 

[AAAintheBeltway]

Quote from jamis359:

Obama is correct. Stock margin requirement is 50%, but for oil futures the margin requirement is only 5%. Why should speculators be allowed to use 10 times more leverage on oil futures than for stocks? Excessive margin and easy credit contributed to the 1929 stock market crash, so why repeat history with oil? Personally, I think conservatives lose credibility on pushing for "free markets" when what we really get are "free casinos." I think we need to regulate futures markets to take out the excessive speculation and put the focus back on futures as a responsible hedging tool for producers and industrial buyers/consumers.

Margin on stock and futures are entirely different. The only thing they have in common is the term "margin."

 

[rodmike9]

Quote from ProgrammerGuy:

Take a look and how much the dollar has fallen and then take a look at how much oil has risen. Even after you adjust for the falling US dollar you still see oil is on a tear

The FED isn't the only central bank participating in the global theft of dollars from their citizens.

Analyzing the relative value of global currencies isn't sufficient for measuring the appreciation of crude oil.

 

[Covertibility]

A crackdown on capitalism, heaven forbid! After the $29 billion of taxpayer money to bail out Bear, now we have BAC writing bailout bills:

Did Bank of America write the Dodd bailout bill?

"Bank of America suggested creating a Federal Homeowner Preservation Corporation that would buy up billions of dollars in troubled mortgages at a deep discount, forgive debt above the current market value of the homes and use federal loan guarantees to refinance the borrowers at lower rates. 'We believe that any intervention by the federal government will be acceptable only if it is not perceived as a bailout of the bond market,' the financial institution noted. In practice, taxpayers would almost certainly view such a move as a bailout."

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American capitalism = Privatize the profits, socialize the losses. The rich get richer while the poor get the bill.

As for the Fed, they done the greatest magic trick of all time since their inception: they've turned a dollar into a nickel.

 

[Godsfist]

The new world caste system is being put in place

 

[Cutten]

Quote from walter4:



According to New Jersey Governor Jon Corzine, a former boss of Wall Street titan Goldman Sachs, the real price of oil based on the laws of supply and demand should be 60-80 dollars a barrel -- rather than nearly 140 dollars."

How many contracts is he short then?

I wonder when Corzine was at Goldman, and he was down 100% on a short position, would he tell his bosses "Don't worry, the market is wrong - the price should be half of what it is right now."

Apparently the correct price of oil is not what it is currently trading at, but what John Corzine says it should be.