Enron Loophole Boosts Oil Prices
It's frustrating enough when gas prices soar due to the unseen forces of global supply & demand. But it's downright unfair when Wall Street speculators contribute to rising prices at the pump.
There's growing evidence that investors looking to make a fast buck are causing oil prices to rise faster than can be explained by ordinary market forces.
It's frustrating enough when gas prices soar due to the unseen forces of global supply & demand. But it's downright unfair when Wall Street speculators contribute to rising prices at the pump.
There's growing evidence that investors looking to make a fast buck are causing oil prices to rise faster than can be explained by ordinary market forces.
My comment:
I would venture a guess here These wall street investors not every day working people.
Congress, however, can do something about the situation. It can help to ease this problem, because it helped to create this monster.
I would venture a guess here These wall street investors not every day working people.
Congress, however, can do something about the situation. It can help to ease this problem, because it helped to create this monster.
My comment:
But I don’t see that happening at this point G. Bush could have frozen the price of gas if he had declared war but didn’t. With McCain following in his foot steps to policies. I wouldn’t expect things to change.
In December 2000, Congress passed the Commodity Futures Modernization Act, which was signed into law by President Clinton just before he left office in January 2001.
Few people realized at the time that a loophole had been tucked into this 262-page bill at the last minute by then-Sen. Phil Gramm, R-Texas. It came to be known as the "Enron Loophole," and it allowed Enron and other large energy traders to be exempt from federal oversight of over-the-counter transactions in energy markets.
Enron is no more, but the loophole lives on. It has allowed massive growth of unregulated trading on energy futures markets, where investors essentially "bet" on the price of oil at a certain date in the future.
My comment:
Points here of note:
Points here of note:
"A loophole had been tucked into this 262-page bill at the last minute by then-Sen. Phil Gramm, R-Texas".
Commodities markets ordinarily allow commercial buyers of goods that people need, such as corn, pork and energy products, to lock in a price for later delivery of those commodities. But in the unregulated environment spawned by the Enron Loophole, speculators increasingly treat commodities as if they were stocks.
Commodities markets ordinarily allow commercial buyers of goods that people need, such as corn, pork and energy products, to lock in a price for later delivery of those commodities. But in the unregulated environment spawned by the Enron Loophole, speculators increasingly treat commodities as if they were stocks.
These investors don't want to take delivery of the oil after they "buy" it; they just want the price to rise so they can make a huge profit. As the dollar weakens, oil becomes an even more attractive investment.
My Comment:
This also figures in to the push for off shore drilling. By the time it would take to produce any gain. It would be too late. This also another way of maintaining control one they could not if we advanced development in new alterative forms of energy & products. Those that have been covered up.
This also figures in to the push for off shore drilling. By the time it would take to produce any gain. It would be too late. This also another way of maintaining control one they could not if we advanced development in new alterative forms of energy & products. Those that have been covered up.
Garrett Water Carburetor - 01/12/98
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The details of these types of trades are largely hidden. Some contracts are negotiated between parties who don't need to disclose them. Some contracts are made overseas, beyond the limited oversight of U.S. regulators.
As speculators flock to oil, they are creating artificial demand for the commodity, which drives up the price. Nobody knows how much speculators are adding to the cost of gasoline, but some analysts believe it's as much as 50 percent of recent increases.
As speculators flock to oil, they are creating artificial demand for the commodity, which drives up the price. Nobody knows how much speculators are adding to the cost of gasoline, but some analysts believe it's as much as 50 percent of recent increases.
Other factors are probably contributing to $4 gasoline. Global oil supply has not increased, and there is growing demand from nations such as China and India.
My comment:
The details of these types of trades are largely hidden. Just as the development of these products.
The first contact with Saudi early in the year and there being no great jump to increased supply after Bush visit backs this.
As well as our image to others. They are just no making effort to increase supply.
This I think is based on them seeing a new change in leadership.
My comment:
The details of these types of trades are largely hidden. Just as the development of these products.
The first contact with Saudi early in the year and there being no great jump to increased supply after Bush visit backs this.
As well as our image to others. They are just no making effort to increase supply.
This I think is based on them seeing a new change in leadership.
Meanwhile the federal authority responsible for regulating such trading, the Commodity Futures Trading Commission, is virtually powerless to step in. The CFTC needs the regulatory authority and the staffing to make sure these markets are transparent and monitored. Congress should give this weakened agency the tools it needs to do its oversight job effectively.
My comment:
Seems I heard this before & it was not from McCain
Seems I heard this before & it was not from McCain
Commodities are products that consumers need for their daily existence, and those markets shouldn't be so vulnerable to greedy manipulation.
http://www2.tbo.com/content/2008/jun/13/na-enron-loophole-boosts-oil-prices/
http://www2.tbo.com/content/2008/jun/13/na-enron-loophole-boosts-oil-prices/
Up Date
The Right-Wing Offshore Drilling Scam
McCain Gas Prices Foiled Again
http://www.wxeg.com/cc-common/news/videos/player.html?loc=13&pimg=&redir=yes
2 points here:
1. The increase has not helped lower gas prices.
2. If production of already generating well’s increase in their production has not helped.
Than how will drilling new ones off shore that will take up to 10 years to get on line do it ?
2 points here:
1. The increase has not helped lower gas prices.
2. If production of already generating well’s increase in their production has not helped.
Than how will drilling new ones off shore that will take up to 10 years to get on line do it ?
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