Right on cue, the U.S. Congress is considering a global warming bill that contains a crackdown on oil speculators, as outlined on Sunday in the San Francisco Chronicle.
Although this kind of legislation is sure to cause heads to explode in Wichita and points south, it seems like a reasonable hedge against $4 a gallon gasoline cutting a swath through any economic recovery.
However, in a sign that the Apocalypse may be upon us, the article goes on to point out that the Saudis think the current $60 per barrel per price is too high – and may hinder any recovery from the recession.
8 Comments
Gas and oil are commodities. The prices are set in the markets. As much as I agree with the intent to crack down on the chaos caused by unchecked speculation, what they are doing isn’t illegal although I suggest it might be unethical. Regardless of the politics, high fuel prices are a big problem that requires careful handling. Let’s hope the investigation succeeds in achieving an economic balance between the producers and consumers.
Hmmmm. Seems like “economic balance” has been a tough commodity to come by, in places like Wall Street.
Not sure I know a commodities broker who understands “economic balance.”
Bill – for a ‘nominal fee’ I will share with you the secret of how to make a small fortune in commoditees.
Heh.
It’d have to be very “nominal,” Ben.
Bill – for a ‘nominal fee’ I will share with you the secret of how to make a small fortune in commoditees.
Start with a large fortune….
Sorry, I just couldn’t pass up a straight line
gotcha!
Remember the lessons of history — like government response to OPEC price hikes in the 70s. Government limits on gas prices led to shortages and the total waste of people’s time waiting in line for their 5-gallon allotment of gas.
Putting oversight on the futures market is one thing, but controls on the market are likely to have a contrary effect. So far the only law we haven’t broken is the law of unintended consequences.
Really no indication that supply is an issue, so I don’t know who’s talking about price controls on the market.