Bruce Watson is a features writer for DailyFinance, focusing on the political and cultural effects of economic events. A contributor to Military Lessons of the Persian Gulf War, A Chronology of the Cold War at Sea, the Journal of American Philosophy, A Cafe in Space, and the forthcoming Peanut Butter, Gooseberries, and Latkes! He has also worked as a research assistant in the British House of Commons and at the United States Naval Institute.
ANYONE can buy an oil or gasoline contract and hope it goes up in value. Just as ANYONE can buy shares of stock in GE, Apple, Ford, GM etc. and hope they go up. It is called INVESTING your money instead of pissing it away.You can buy Commodity contracts for Corn, Rice, Lumber, Coal, Wheat, Silver, Rice, Beef, Pork etc. etc. and hope they go up in value so you can make money on your investment. BUT be careful. Two years ago oil went down from $140 per barrel down to $45 per barrel and those who bought oil and gasoline contracts lost their shirts.Every contract trade takes place on the Commodities exchange and there are no secrets of mysteries about it. Every trade is a Recorded transaction just as buying shares of stock or buying a car or buying a home is a recorded transaction with a willing Buyer and a willing Seller.If you want to learn more about how Commodity Contracts work and their cost visit the Chicago Mercantile Exchange. Their web site is cmegroup.com
Its time to make the oil future trades transparent, much like other commodities are required to be. Then we can see if, indeed, the oil companies themselves are driving up the price of oil or if oil producing nations soveriegn funds are used in this fashion. There is no doubt in my mind that manipulation is the core of our problem as demand cannot rise at the rate that oil futures went up. Remember, during WWII, oil speculators (or other strategic materials) were prosecuted for this and put in jail. Our economy cannot be at the mercy and direction of the oil speculators.
I wish poeple on here would learn to spell and write and not post a bunch of gibberish. ILLITERATE, IGNORANT M/F'S!!!!!!!!
Speak for yourself loser
WHAT DID OBAMA SAY HE WOULD DO CAPE THE OIL SO IT DIDNT GO UP OIL COMP MAKE 378 MIL A DAY OBAMA LIED TO US HE IS GETTING RICH OFF IT HE NEED TO DO WHAT HE SAID HE DO CAPE IT SO WE DONT PAY THAT MUCH IF HE WOULD CAPE THE OIL COMP.S IT WOULD DROP 1/2 IN 1 DAY TO $2.00 A GAL WELL WE KNOW HE AINT GOING TO DO THAT NOW WILL HE HELL NO
WOW!! I LOVE THIS COUNTRY EVERYTHING GOES UP, THIS COUNTRY IS SO QUIT ABOUT PRICE GOES UP SO IT MEANS AMERICAN PEOPLE THEY LIKE IT. BEC. ITS BARACK OBAMA. WE LOVE YOU MR. PRISEDENT.
hmmm Geeedy Oi check list l ..Soros invested alot of $$$ in Libya Oil check " .Lets see Soro's wanted his own Oil drilling company check " .... Soros ahtes his Jewish Monther and Bush check " ....finds a far left un exp . Obama ..check " ... buys the white house for Obami check " , 2010 Obama has a meetring with Soros. Check " Brazil wind the Olymipic game to be held in Brazil lots of $$$$ Check " ...... A new oild drilling company is formed in Brazil " Check " ........Oh No Obama being pressured into what to do wit Libya Check " .....Obama stalls and runs to Soros who does not want Gadhafi out of power his Libya Oil could be at stake check " .....Obama quickly signs the oil drilling contract and loans Brazil oil drilling billions of dollars in loan ...check " ......Just so happens that Soros owns that Brazil oil drilling company check " ......the very next day Obama takes a fake humanitarian vacation to Brazil check " ...........Obami alsays hides after he has done somthing naughty check " ....Pay back for the white house check " Gee wonder what personal investment Obami made in that oil " .........check "
What a stupid country we've become.
If you buy oil commodity's and have no way to influence the marketthen how is speculation anything but investing?Demand is the boggie man here not investors.I think the answer is to use more of ours and less of there's?
Meant 20K on base Tesla electric car (or Chevy Volt- I'm not picky!) not 200K
Releasing oil from Reserve could solve demand supply bullshit and crush the speculators. Gas could be set by government release or purchase of oil at some benchmark (say $60 barrel). Work out amount needed to be released each week to get gas price to say $2 per gallon and then pop another $1 tax on that amount for a net amount at the pump of $3 per gallon. Public is thrilled because gas price lowered to acceptable $3 gallon while you have just funded the alternative energy space. Example subsidize electric car purchases with excess revenue from the pump (which also by the way does not go to the greedy OIL companies). Say a new Tesla car cost $200k but with subsidy from this new revenue source the price is lowered to $7500 to the public. Bang suddenly market goes from a few hundred thousand per year to tens of millions per year. Booming economy in electric cars. Since 90% of daily use is less than 50 miles total you simply plug in to recharge at night. New industry virtually overnight. Tax policy has always named the winners and losers in America but maybe its time that the winners are also what is GOOD for America. And itchynuts or whatever your name is I do have an economics degree along with 3 business degrees. The worst tax program in America is the 15% rate on capital gains and dividends. Caused a whole generation to cheat on what they should rightly owe. Its the reason Warren Buffet pays at a lower tax rate than his secretary. America grew when we had a progressive tax rate in force that stopped the greed at the top.
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