To Trysail and handprints and everyone else who said oil speculation doesn't happen

[LJ_Reloaded]

This "Fuck you, and the horse you rode in on, because you really didn't know what the fuck you're talking about", is for you.

http://thinkprogress.org/green/2011/04/13/174989/sachs-speculators-gas-prices/

Goldman Sachs Admits Record Speculation To Blame For Skyrocketing Gas Prices
By Brad Johnson on Apr 13, 2011 at 10:45 am

Saying that “net speculative positions are four times as high as in June 2008,” investment banker Goldman Sachs “issued a warning that the price of oil has grown out of control due to excessive speculation.” The world’s largest commodity trader, Goldman Sachs told its clients that it believed speculators like itself had artificially driven the price of oil at least $20 higher than supply and demand dictate. They even admitted that their work to drive up prices has harmed the American economic recovery, pointing to “nascent signs of oil demand destruction in the US.”

Ed Schultz, who’s been one of the few voices in the media sounding the alarm about unregulated speculators, yesterday bashed Fox News for selling the “drill baby drill” line in response to the surge in the oil markets. Former commodities trader Dan Dicker explained to Schultz that the CFTC is failing its mandate to control Wall Street:

Bottom line, it is not supply and demand.

Watch the video at the link.

 

[Stella_Omega]

Instead of cluttering up this Erotic Writers' forum with economic and chair throwing, couldn't you have posted this to one of trysails threads?

Top posting a retort is a Garbage Board tactic.

 

[lovecraft68]

Instead of cluttering up this Erotic Writers' forum with economic and chair throwing, couldn't you have posted this to one of trysails threads?

Top posting a retort is a Garbage Board tactic.

But that's where he's from.

 

[Boxlicker101]

Bill O'Reilly has been saying pretty much the same thing for years.

 

[TE999]

Bottom line, it is not supply and demand.

Commodities trading and the resulting speculation is a byproduct of supply and demand. Given the continuing turmoil in the middle east and Iran threatening to blockade the Straits of Hormuz, the supply of oil could be slowed to comparative trickle as the demand here in the US increases.

The speculative part is based on the price of a barrel of oil skyrocketing, which could result in a huge windfall for middlemen who own the oil (or have a claim to it) and would sell it to the highest bidder at it's vastly increased price.

This happens all the time, especially in food crops like wheat, rice, corn and such. If you've noticed, prices have risen on those things as well, due to low crop yields, Ethanol distillation and the increasing cost of gasoline for transport.

In Economics, no one item or product is exclusive to another; they're all interlinked.

Short version: You're wrong.

 

[Boxlicker101]

Commodities trading and the resulting speculation is a byproduct of supply and demand. Given the continuing turmoil in the middle east and Iran threatening to blockade the Straits of Hormuz, the supply of oil could be slowed to comparative trickle as the demand here in the US increases.

The speculative part is based on the price of a barrel of oil skyrocketing, which could result in a huge windfall for middlemen who own the oil (or have a claim to it) and would sell it to the highest bidder at it's vastly increased price.

This happens all the time, especially in food crops like wheat, rice, corn and such. If you've noticed, prices have risen on those things as well, due to low crop yields, Ethanol distillation and the increasing cost of gasoline for transport.

In Economics, no one item or product is exclusive to another; they're all interlinked.

Short version: You're wrong.

Speculation has only the remotest connection to supply and demand. It has none to the demand, which is fairly stable, except to reduce it somewhat because of the inflated prices. Goldman Sachs has nothing to do with the production of or any other aspect of the supply of oil or oil products. All they do is buy up rights to large volumes of oil that will be produced, in hopes the price will go up, and sell those rights when it does. Does GS actually own any oil wells?

 

[LJ_Reloaded]

Does GS actually own any oil wells?

Bingo. BTW I posted this here because handprints and Trysail came from here.

This was dedicated in particular to Handprints because all you guys were stampeding to drink the kool-aid he was selling. That boy had people seriously bamboozled into thinking he knew what he was talking about.

Turns out the unwashed hickster had this situation pegged. That is... unless one can point out the location of Goldman Sachs's oil wells.