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Old 01-12-2009, 05:18 PM   #1
ghorn
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Oil Speculators To Blame For Record Gas Prices After All [w/vid]

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This is absurd. Did you need to be some economic guru to realize that they were gouging the F outta us? Thanks to everyone that was so confident that it was merely supply and demand at work.

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If you thought oil speculators as the reason behind the historic gas prices spikes of this summer was debunked, think again. From '07 to when the price of oil collapsed, supply increased and demand dropped. According to basic economic theory, this should've meant the price went down. But all of a sudden an influx of capital, an infusion that brought the total at play from $13 billion to $300 billion, brought to market by large investment bankers, exploiting de-regulation and trading in black box private exchanges made possible by Enron, drove the price of oil from $69 to almost $150. A new 60 Minutes report explores the issue. Video inside.

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"Who was responsible for deregulating the oil future market?" Kroft asked Michael Greenberger.

"You'd have to say Enron," he replied. "This was something they desperately wanted, and they got."

///Asked why they wanted a deregulated market in oil futures, Greenberger said, "Because they wanted to establish their own little energy futures exchange through computerized trading. They knew that if they could get this trading engine established without the controls that had been placed on speculators, they would have the ability to drive the price of energy products in any way they wanted to take it."

"When Enron failed, we learned that Enron, and its conspirators who used their trading engine, were able to drive the price of electricity up, some say, by as much as 300 percent on the West Coast," he added.

"Is the same thing going on right now in the oil business?" Kroft asked.

"Every Enron trader, who knew how to do these manipulations, became the most valuable employee on Wall Street," Greenberger said.

But some of them may now be looking for work. The oil bubble began to deflate early last fall when Congress threatened new regulations and federal agencies announced they were beginning major investigations. It finally popped with the bankruptcy of Lehman Brothers and the near collapse of AIG, who were both heavily invested in the oil markets. With hedge funds and investment houses facing margin calls, the speculators headed for the exits.

"From July 15th until the end of November, roughly $70 billion came out of commodities futures from these index funds," Masters explained. "In fact, gasoline demand went down by roughly five percent over that same period of time. Yet the price of crude oil dropped more than $100 a barrel. It dropped 75 percent."

Asked how he explains that, Masters said, "By looking at investors, that's the only way you can explain it."

http://consumerist.com/5129731/video...ices-after-all
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Doing drugs and having sex... oh wow big deal. Well it is actually a HUGE deal.
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Old 01-12-2009, 05:41 PM   #3
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no $hit...
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Old 01-12-2009, 05:44 PM   #4
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no $hit...
Exactly. I'm waiting for all of those ppl that claimed, in the numerous threads on the sbuject, "it's just supply and demand!"
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Old 01-12-2009, 05:54 PM   #5
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... this is coming from the same people who reported that a CDS as a "complex derivative instrument only to be understood by a few".
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Old 01-12-2009, 07:10 PM   #6
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so everything 60 min says is true, give me a break
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Old 01-12-2009, 07:27 PM   #7
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so everything 60 min says is true, give me a break
























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Old 01-13-2009, 09:46 AM   #8
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so everything 60 min says is true, give me a break
Gonna talk sh!t about the MIT study that 60 Min reported on in that segment, too? Oh that's right, you probably paid no attention. gtfo
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Old 01-13-2009, 10:12 AM   #9
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We need to start taking names for everyone that backed this type of deregulation and watch them very, very closely in the next ten years (within the law, of course). I smelled BS way back when it started and if you still think futures are a good idea, then you deserve McCarthy-esque levels of scrutiny.

They might have been a good idea back when Farmer Joe had a hard time selling his crops one year and had a surplus the next year, but the concept is obsolete in nearly every modern market. Allowing investors to buy up future production of something that is in as high demand as oil is asinine.
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Old 01-13-2009, 11:11 AM   #10
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Looks like these huge investment banks set up a nice system for themselves (with the help of congress of course) where information which can possibly lead to accountability for manipulating the market is impossible to get. How convinient.
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Old 01-13-2009, 11:16 AM   #11
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it was supply and demand
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he's just the resident off-topic ball breaker. Dont take it personally.
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Old 01-13-2009, 11:27 AM   #12
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At first I believed it was supply and demand but the prices kept climbing. I don't know why no one says anything or does anything until after the fact? Oil tycoon for President, this was a given..

What makes we wonder is why the oil companies screwed GM with high gas prices when both GM and Oil worked together to rid electric cars and the only automakers to benefit from this where foreign as they had already prepared hybrids for production..lol America failed on this one, hard.
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Old 01-13-2009, 11:31 AM   #13
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it was supply and demand
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Old 01-13-2009, 11:34 AM   #14
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Old 01-13-2009, 12:35 PM   #15
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Old 01-13-2009, 12:40 PM   #16
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Thats what happens when the President and his family owns 80% of the oil in the Country and says theres a supply shortage Bush is a crook
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Old 01-13-2009, 12:44 PM   #17
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At first I believed it was supply and demand but the prices kept climbing. I don't know why no one says anything or does anything until after the fact? Oil tycoon for President, this was a given..
I just can't get over the fact how dumbfounded he looked at the mention of $4 gas. "$4 Gas. I haven't heard that. That's news to me."

If I hadn't lost respect for him prior to that, that moment would have done it.

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What makes we wonder is why the oil companies screwed GM with high gas prices when both GM and Oil worked together to rid electric cars and the only automakers to benefit from this where foreign as they had already prepared hybrids for production..lol America failed on this one, hard.
Greed? Probably weighed personal short-term gains against long term company success and the former won?
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Old 01-13-2009, 01:38 PM   #18
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it was supply and demand
Yeah, the big investment banks were demanding more profit, and us sorry saps were supplying it to them.
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Old 01-13-2009, 01:40 PM   #19
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Regardless, I think we still need to push for more alternative sources of energy. I really hope the drop in gas doesn't detract from meeting those objectives.
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Old 01-13-2009, 02:56 PM   #20
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I just can't get over the fact how dumbfounded he looked at the mention of $4 gas. "$4 Gas. I haven't heard that. That's news to me."

If I hadn't lost respect for him prior to that, that moment would have done it.

Greed? Probably weighed personal short-term gains against long term company success and the former won?


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Regardless, I think we still need to push for more alternative sources of energy. I really hope the drop in gas doesn't detract from meeting those objectives.
You know where I stand politically but I was blown away when McCain and Bush suggested digging for more oil What kind of water head retard would suggest dumping money into more oil and not into electric vehicles? Everything is so political and big oil controls everyone in office. Instead of electric vehicles, congress was pushing for Hydrogen vehciles- wtf? It would require a whole new infrastructure of pipeline and processes and would cost a sh1t ton but would keep the oil businesses in business. It is so stupid, the obvious move is electric. Washington is fighting teeth and nail from that happening. That's the problem with America man, we are going down with old industries instead of creating new ones.
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