I didn’t get much support two weeks ago when I said that oil prices were being driven higher by speculators. But this morning, George Soros, one of the world’s greatest speculators, agreed with me.
“Speculation… is increasingly affecting the price,” he said. “The price has this parabolic shape which is characteristic of bubbles. You can also anticipate that [the bubble] will eventually correct but that is unlikely to happen before the recession actually reduces the demand. The rise in the price of oil and food is going to weigh and aggravate the recession.”