Liberals seem to believe that speculators randomly "attack" various asset classes and voluntarily put billions of dollars in jeopardy. If speculators actually controlled prices (rather than underlying fundamentals), the price of oil, for example, would have never fallen from 146$/barrel to 33$/barrel in 2008. Of course, speculators merely reveal that various government interventions, which liberals endorse, are inherently self-defeating and actually make society poorer.
Newsweek ran an article several years ago that explained how Goldman Sachs and Morgan Stanley account for 35-50% of the cost of oil. Stinking rich investors collude buying up futures with no intent on taking on the product. Leave it to a Republican, John McCain, to defend the oil bubble created by selfish rich investors. Time to chase the money changers and usurers from the temple.
It costs $5/barrel to mine light sweet crude like what's mined in the middle east. It costs $10 - 15/barrel to mine oil sands. The oil producers can easily handle an oil price of $20/barrel. Them demanding $80/barrel is just fucking greedy. I hope the free market takes hold and American oil companies make up the difference.
A.E.I is a failed think tank that has been proven wrong on every statement they have ever made and when proven wrong then you are not a THINK TANK at all. Just a bunch of dummies jerking off for Israel.
60 billion dollars in oil speculation this year. driving the prices up 300% in 3 years. This is a ponzi scheme with NO regulation and the oil companies want to DRILL DRILL DRILL. it is a big scam causing this domestic recession, throw the bums out!
If all the contracts on the spot market are from speculators holding at 150 bucks a barrel, then what choice do I have as a consumer than to pay 150 bucks.
What? The spot market is between the producers and buyers. There are NO speculators there.
The speculators provide liquidity in the FUTURES market. But no one buying anything, or providing liquidity, can determine price in the spot market. That's this guys (in the vid) premiere problem with his thesis.
Want proof of that? Warren Buffett bought billions worth of stock last year.
It couldn't determine price at all. The stocks still fell.
Cheney/Bush & gang tested how far they could go and the world let them do it. In 2001 Int'l Petroleum Exchange London was purchased by InterContinental Exchange (ICE),
ICE had 13 original investors;Royal Dutch Shell, BP Amoco Total Fina Elf, Goldman Sachs and Morgan Stanley,Deutsche Bank and Socit Generale - Am Electric Power, Aquila Energy, Duke Energy, El Paso Energy, Reliant Energy and Mirant. ICE sets daily oil price - very profitable buying and selling oil and other commodity futures!
"You have a lot of people coming into this market only on the buy side." How is this possible given that these speculators don't actually take delivery of any oil?
There was a lot of speculation in the housing market when lots of people who thought the prices were going up were buying houses in order to flip them later. But they actually took delivery of the traded goods. No oil speculator wants any oil in their back yard so he needs to find a real-world buyer for it when the contract is due.
Finally after a very long time Americans are getting a practical lesson in what speculation is all about and how, in some instances, it is not in the best interests of the vast majority. Speculation is not harmful per se in all cases especially when the supply of a thing can be easily/rapidly increased. But when speculation is in commodities, particularly natural commodities that are necessities of life like land and now oil speculation is an unjust free gift to speculators and a form of murder.
FACTS--SPECULATION drove our nation to financial collapse in the 20's,,, Franklin Roosevelt made speculation a crime, and recovered this nation to become the strongest, richest and most powerful nation in the world.
JUST SPECULATING--Oil prices will drop back below $1 per gallon if SPECULATORS HEADS were cut off and used on Wall Street for a bowling tournament... (I'm Just SPECULATING- but i think its worth a try)
The added transportation cost due to the higher fuel price ... is sadly passed on also, to the consumers. So beside being attacked at pump with a $4.00+ per gallon price, the American consumer is being hit in the pocketbook, from all sides.
- The Democrats in Congress have urgently responded by introducing Bill HR 6346 ... the "Price Gouging Prevention Act" ... which was sadly opposed & blocked by the Republicans by a 276/146 vote.
- The Democrats are now introducing Bill HR 6330 ... the "Prevent Unfair Manipulation of Prices" or (PUMP ACT) ... to close the ENRON loophole and to reign-in the oil commodities speculators and place them under the federal control and supervision of the "Commodity Futures Trading Commission" (CFTC) which would have the "immediate" effect to bring the price at the pump down by 50%.
- The Republicans again siding with "BIG FINANCES" and "BIG OILS" oppose this bill and oilman president Bush said he will veto it, if it reaches his desk !! (Wall Street --Big Oils have raked in over 600 billion$ in record profit$ since 2000.)
OIL DRILLING or ALTERNATIVE FUEL or NEW TECHNOLOGY will NOT help the American consumers in the "immediate" future.
Because both BILLS HR 6346 & 6330 were introduced in Congress by the Democrats--and NOT the Republicans & because of the upcoming presidential election--the Republicans would rather play politic & ignore the American Consumers. They do not want the Democrats to receive credit for the help they are fighting to "IMMEDIATELY" provide to the American Consumers, so they can later proclaim, that the Democratic Congress--is a "DO NOTHING CONGRESS."
The explanation he advances doesn't add up. Future contracts are for one-six months. He's essentially claiming that the price of oil will be whatever the future contract sold for. But a contract is binding on both sides. When that future expires, someone has to take delivery of the oil. You can only "roll over" a future (or anything else) unless there's someone on the other end of the transaction. And unless there is, you must take delivery or sell the future at a loss.
Apologies, but I now know this is incorrect. The CFTC does allow for exceptions, and some trading venues (London, Dubai) may well allow pure rollovers (in which an option is settled exclusively with cash). In the USA, this is restricted, to prevent the futures market from interfering with valid price discovery.
Liberals seem to believe that speculators randomly "attack" various asset classes and voluntarily put billions of dollars in jeopardy. If speculators actually controlled prices (rather than underlying fundamentals), the price of oil, for example, would have never fallen from 146$/barrel to 33$/barrel in 2008. Of course, speculators merely reveal that various government interventions, which liberals endorse, are inherently self-defeating and actually make society poorer.
Questfortruth86 10 months ago
Newsweek ran an article several years ago that explained how Goldman Sachs and Morgan Stanley account for 35-50% of the cost of oil. Stinking rich investors collude buying up futures with no intent on taking on the product. Leave it to a Republican, John McCain, to defend the oil bubble created by selfish rich investors. Time to chase the money changers and usurers from the temple.
SOLISDEUS 2 years ago 3
It costs $5/barrel to mine light sweet crude like what's mined in the middle east. It costs $10 - 15/barrel to mine oil sands. The oil producers can easily handle an oil price of $20/barrel. Them demanding $80/barrel is just fucking greedy. I hope the free market takes hold and American oil companies make up the difference.
quuaa1 2 years ago 2
A.E.I is a failed think tank that has been proven wrong on every statement they have ever made and when proven wrong then you are not a THINK TANK at all. Just a bunch of dummies jerking off for Israel.
inachu 3 years ago
Big Brother 'big Oil" is only raking in greenbacks faster than the IRS from every American and burning a hole in their pockets.
USD 600 billion disposable imcomes are taken off consumer spending. Obama is 100% this time around, burning oil money must change. Yes we can.
Wake up America ... or you will never get to wake up.
Love... Take Care.
OnePlanet Guy
the PunnacleMan
Dr. Patrick Vincent Tay
Oneplanet1 3 years ago
Cooper is great! Robert Deniro has to play Cooper in a movie soon!!!
o0xst 3 years ago
60 billion dollars in oil speculation this year. driving the prices up 300% in 3 years. This is a ponzi scheme with NO regulation and the oil companies want to DRILL DRILL DRILL. it is a big scam causing this domestic recession, throw the bums out!
maunaowakea777 3 years ago
BOLOGNA!
VERY SIMPLY! What about the spot market? The speculators don't even play with the spot actual cash market.
The speculator looks to the spot market for action.
FUTURES SPECULATION ISN'T WHATS BEING PAID FOR OIL ON A DAY TO DAY BASIS
THE MORE SPECULATION THE BETTER
AirelonTrading 3 years ago 2
If all the contracts on the spot market are from speculators holding at 150 bucks a barrel, then what choice do I have as a consumer than to pay 150 bucks.
If I don't I go without oil.
jizzmonger 3 years ago
Speculators aren't in the spot market.
AirelonTrading 3 years ago
For the love of Pete.
jizzmonger 3 years ago
What? The spot market is between the producers and buyers. There are NO speculators there.
The speculators provide liquidity in the FUTURES market. But no one buying anything, or providing liquidity, can determine price in the spot market. That's this guys (in the vid) premiere problem with his thesis.
Want proof of that? Warren Buffett bought billions worth of stock last year.
It couldn't determine price at all. The stocks still fell.
AirelonTrading 3 years ago
Cheney/Bush & gang tested how far they could go and the world let them do it. In 2001 Int'l Petroleum Exchange London was purchased by InterContinental Exchange (ICE),
ICE had 13 original investors;Royal Dutch Shell, BP Amoco Total Fina Elf, Goldman Sachs and Morgan Stanley,Deutsche Bank and Socit Generale - Am Electric Power, Aquila Energy, Duke Energy, El Paso Energy, Reliant Energy and Mirant. ICE sets daily oil price - very profitable buying and selling oil and other commodity futures!
Hereandthere88 3 years ago
"You have a lot of people coming into this market only on the buy side." How is this possible given that these speculators don't actually take delivery of any oil?
There was a lot of speculation in the housing market when lots of people who thought the prices were going up were buying houses in order to flip them later. But they actually took delivery of the traded goods. No oil speculator wants any oil in their back yard so he needs to find a real-world buyer for it when the contract is due.
neaorin 3 years ago
Finally after a very long time Americans are getting a practical lesson in what speculation is all about and how, in some instances, it is not in the best interests of the vast majority. Speculation is not harmful per se in all cases especially when the supply of a thing can be easily/rapidly increased. But when speculation is in commodities, particularly natural commodities that are necessities of life like land and now oil speculation is an unjust free gift to speculators and a form of murder.
ourearthhome 3 years ago
FACTS--SPECULATION drove our nation to financial collapse in the 20's,,, Franklin Roosevelt made speculation a crime, and recovered this nation to become the strongest, richest and most powerful nation in the world.
JUST SPECULATING--Oil prices will drop back below $1 per gallon if SPECULATORS HEADS were cut off and used on Wall Street for a bowling tournament... (I'm Just SPECULATING- but i think its worth a try)
onlyprophet 3 years ago
PART-2
WHY THE AMERICAN CONSUMER PAYS THRU THE NOSE
The added transportation cost due to the higher fuel price ... is sadly passed on also, to the consumers. So beside being attacked at pump with a $4.00+ per gallon price, the American consumer is being hit in the pocketbook, from all sides.
- The Democrats in Congress have urgently responded by introducing Bill HR 6346 ... the "Price Gouging Prevention Act" ... which was sadly opposed & blocked by the Republicans by a 276/146 vote.
librophile 3 years ago
PART-3
WHY THE AMERICAN CONSUMER PAYS THRU THE NOSE
- The Democrats are now introducing Bill HR 6330 ... the "Prevent Unfair Manipulation of Prices" or (PUMP ACT) ... to close the ENRON loophole and to reign-in the oil commodities speculators and place them under the federal control and supervision of the "Commodity Futures Trading Commission" (CFTC) which would have the "immediate" effect to bring the price at the pump down by 50%.
librophile 3 years ago
PART-4
WHY THE AMERICAN CONSUMER PAYS THRU THE NOSE
- The Republicans again siding with "BIG FINANCES" and "BIG OILS" oppose this bill and oilman president Bush said he will veto it, if it reaches his desk !! (Wall Street --Big Oils have raked in over 600 billion$ in record profit$ since 2000.)
OIL DRILLING or ALTERNATIVE FUEL or NEW TECHNOLOGY will NOT help the American consumers in the "immediate" future.
librophile 3 years ago
PART-5
WHY THE AMERICAN CONSUMER PAYS THRU THE NOSE
Because both BILLS HR 6346 & 6330 were introduced in Congress by the Democrats--and NOT the Republicans & because of the upcoming presidential election--the Republicans would rather play politic & ignore the American Consumers. They do not want the Democrats to receive credit for the help they are fighting to "IMMEDIATELY" provide to the American Consumers, so they can later proclaim, that the Democratic Congress--is a "DO NOTHING CONGRESS."
librophile 3 years ago
BOTTOM LINE.... This country's enemies are born in America & raised the American way
oilldrill1 3 years ago
finally an explanation i can begin to understand.
DickMcChristopher 3 years ago
You guys need to research the "Enron clause" that will help you out and UNDERSTAND what he is saying and how this has come to pass.
ealfinez 3 years ago
Mark Cooper is a freaking anti-freemarket communist. That simple. He's attacking free market ideals.
The man needs to listen to the people who are shipping oil to China and India.
AirelonTrading 3 years ago
The explanation he advances doesn't add up. Future contracts are for one-six months. He's essentially claiming that the price of oil will be whatever the future contract sold for. But a contract is binding on both sides. When that future expires, someone has to take delivery of the oil. You can only "roll over" a future (or anything else) unless there's someone on the other end of the transaction. And unless there is, you must take delivery or sell the future at a loss.
jamesrmaclean 3 years ago
Apologies, but I now know this is incorrect. The CFTC does allow for exceptions, and some trading venues (London, Dubai) may well allow pure rollovers (in which an option is settled exclusively with cash). In the USA, this is restricted, to prevent the futures market from interfering with valid price discovery.
jamesrmaclean 3 years ago