Senator Bernie Sanders Demands Action From Obama On Wall Street Oil 'Gambling'

[newwurldmn]

I guess one could argue that speculators drive the price of oil to it's "proper" price too fast; and that consumers need to adjust commodities like Oil, foodstuffs, etc. at a slower rate to moderate their spending, etc. accordingly. That is the more volatile pricing is for consumables the harder it is to plan spending patterns and that creates inefficiencies in spending.

This is one of the arguments for watching inflation and keeping it steady. When you have an idea what the price of a product will be next year and today you can plan your spending appropriately.

 

[stopnlimits]

Quote from newwurldmn:


When you have an idea what the price of a product will be next year and today you can plan your spending appropriately.

Average Joe America who married average Sally typically don't plan that far ahead.

 

[bone]

Logic would also hold that speculators oversold crude late in 2008.

Saw that cuts both ways.

 

[EPrado]

Quote from EMRGLOBAL:

This is the same government who just took land, destroyed homes, regardless of their "Worth".

http://www.msnbc.msn.com/id/42873438/ns/weather/

You do not truly own property in this country if the GOV deems it not so. So, what if the Government decided to take over all independent producing oil wells?

The "GREATER GOOD" is more important than your farmland. May be more important than your "Oil"well.

Revolution is coming and I can't wait.

My last post before I board a plane to Columbia, where at least I know what the Rules are and what the Government controls.

I will post some economic findings when I return on Friday, from an Investors meeting.

Until then, I'm sure the Parasites on ET will post 1000000 more fucking idiotic post and give praise to the "NEW WORLD ORDER", as they don't have a pot to piss in.

Oh yea, hey ass clown SENIOR EPRADO? Take a look at oil prices you fool! You speak about shit you have no clue about. I suggest you stay put in your Cubical and continue to answer those inbound sales calls for "Vaginal" cream.....you idiot.

I am looking at oil prices EMR.

Crude has now dropped 8 dollars since I made that comment. You are perhaps one of the best indictors ever discovered.

Do you have any views on other mkts we all can fade and make mucho dinero ?

Let us know when you get back from your cub scout trip.

 

[MKTrader]

Quote from bone:

Logic would also hold that speculators oversold crude late in 2008.

Saw that cuts both ways.

Yeah, I've been trying to make that point, too. No one was screaming about "greedy speculators taking oil to a 'ridiculously' low price of just over $30/b." It only works in one direction, so that's why the politicians/press/ignorant masses whine about high prices.

 

[misterno]

Quote from newwurldmn:

Prices are the wackiest in markets where speculators aren't allowed. If you look at a lot of third world markets where they don't allow shorting or limit investor bases there are very akward mispricings. A classic example were indian ADR's which traded at a 50-100% premium to indian local stock. So an indian in india could by the same stock for 1/2 the price of an American investor. American investors had all the money and it was harder for indian companies to tap that money for capital expansion.

This price discrepancy can not only be attributed to lack of shorts or derivatives on the underlying stock. It may very well be that ADR's price is boosted artificially.

 

[MKTrader]

Quote from EPrado:

I am looking at oil prices EMR.

Crude has now dropped 8 dollars since I made that comment. You are perhaps one of the best indictors ever discovered.

Do you have any views on other mkts we all can fade and make mucho dinero ?

Let us know when you get back from your cub scout trip.

To be fair, you were cheerleading the S&P at 1371 on Sunday night like a newbie on the Bin Laden hype. Any updates?

 

[misterno]

Quote from lorax2013:

Holy crap, is this actually a debate? The future price is determined entirely by speculation. Then the oil comes to market - it doesn't make a difference if someone bought the oil future at $1000 or $10 - a physical buyer must now be found. Nearly all oil is refined and used upon delivery - storage changes are negligible. So speculators only control the future price and are not storing oil to impact the spot price. If that basic concept is too complex then just consider that oil was generally in backwardation during all the recent run-ups and strong forwardation during the collapses.
Yeah there are a few other factors involved but if you can't grasp the fundamentals then any further discussion is superfluous. If you don't understand trading then please go rant with the sheeple on some other forum.

I agree with what you are saying but you are missing one point. When physical oil comes to market from futures market with HIGH price, the spot price will follow this HIGH price.

Thus, we as end users are paying for speculation.

If shorting, options, futures are all banned and only spot trading is allowed, we will see $10/ barrel overnight.

Of course, Goldman Sucks will oppose to this.

 

[Free Thinker]

Quote from MKTrader:

Yeah, I've been trying to make that point, too. No one was screaming about "greedy speculators taking oil to a 'ridiculously' low price of just over $30/b." It only works in one direction, so that's why the politicians/press/ignorant masses whine about high prices.

no one said it only works one way. speculative bubbles always pop leaving a trail of bagholders in its wake. the problem is a speculative rise in oil can do serious economic damage before it pops.
what is the value of letting a few smart speculators profit while leaving a trail of wreckage in the end?
some of you dont know much about history or the market if you dont think speculators can move prices out of realistic norms.

 

[MKTrader]

Quote from Free Thinker:

some of you dont know much about history or the market if you think speculators can move prices out of realistic norms. [/B]

That would be you. There aren't any pre-set "realistic norms." Read Extraordinary Popular Delusions & the Madness of Crowds . Markets have always been about speculation; about making money as they go to extremes and when they reverse. That's why we play this game.

If you want "realistic norms," see if you can set up a simulated trading community where no wild speculation takes place. It will be the equivalent of "no-score, no-competition" T-ball for kids.

Sheesh.

If you're worried about economic damage, go after those setting up the pre-conditions for these things: the Fed, draconian regulators and anti-drillers, mega-deficit spenders, etc. There will always be speculation and "unrealistic" norms, but much less with a sound currency and better fiscal discipline.