Oil crisis simple solution - outlaw margin trading of commodities - why not?

I do the grocery shopping, and I can tell you inflation is a LOT more than 2 -- 3%. :eek:

"Core inflation": as far as I can tell, that means they select whatever isn't inflating hoping to lie the rate down.
 
it'd be interesting to find out how much stuff related to alternative energies has been inflating.....

what is the inflation rate on :
coal?
silicon for solar panels?
wood for woodstoves?
 
Quote from travelingtrader:

Oil crisis simple solution - outlaw margin trading of commodities - why not?

As others have pointed out, it would be very easy to pop the commodity bubble and have $35 oil and $1.25 gas if margin trading of commodities was outlawed.

What I don't understand is why this isn't being discussed by the government, regulators, and people that care about mankind as a solution to this sickening speculator induced bubble. All Washington has to do outlaw margin trading of commodities and this speculator induced nightmare will end instantly.

It is pitiful to watch stupid Bush go and ask Saudi Arabia to increase production. This has nothing to do with Saudi Arabia. This is being caused by NYMEX, ICE, and the CFTC - all of which can be controlled by the US government.

In the old days commodity prices were determined in the marketplaced between producer and consumer. Today commodity prices are determined in digital casinos between speculator and speculator.

Gamblers shouldn't determine what ordinary people pay for gas and food. A fair marketplace consisting of consumer and producer and no one else should determine this.

Outlawing margin trading of commodities is the fastest, easiest, only solution. It is time we let the president, congress, regulators and those responsible for this mess (NYMEX, ICE, CFTC) know that decisive action must be taken NOW!
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Are you in Congress by chance?
 
I like that ppl are margined to their ears in oil because when shit hits the fan those margined players are going to absolutely murder oil to the downside with their forced sales. Let the market take care of this themselves, they will.
 
Here's a novel idea. What if the Fed were to raise interest rates? Prices of EVERYTHING would come down. People could only buy what they were able to afford, not their wish list or what their neighbors are doing. Overpaid for your house? Sorry.
 
I saw a NYMEX rep interviewed this morning. According to him only 20% of the oil futures open interest are speculators and 1/2 of them are short.
 
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