Crude Falls

I made it clear in March that this oil price speculation was dangerous. If on a day like today, with the Russian-Georgian incident on going, for crude oil to continue its fall, you know the “naked shorts” are fleeing the oil futures market. It will be interesting, when the bloodbath is over and oil is back to $100 a barrel, to see who really got burned.

I think the commodity bubble play is all over. And that’s not a bad thing.

Obama can point out that the pure threat of regulating commodity trading from the Democratic Congress, got a lot of bad actors (hedge funds who value their anonymity more than they value there ability to manipulate the futures market) out of the game.

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0 Responses to Crude Falls

  1. Rick Turner says:

    Now would be the time to slap an alternative energy development tax on gas and just keep prices more or less where they are. Use the dough on shoring up the electrical grid as it’s going to have to be able to carry twice the power in not too many years. Use the dough on tax credits for Morgan’s beloved R&D. Use it for tax credits for anyone installing solar, wind, micro-hydro, etc. Tax credits will stimulate private investment into those technologies as it will guarantee end customers.

  2. Jon Taplin says:

    Rick- Itotally agree. The closer we can keep gas at $4 per gallon, the better.

  3. Noel Mccarthy says:

    Although, we’ve gotten a little taste of the real panic $4 per gallon causes in the American electorate – the ‘Drill Anywhere’ mentality that developed so quickly would surely lead to ‘Bomb Anywhere’…

  4. Rick Turner says:

    Well, (and that’s a sick pun), we’ve been bombing anywhere…all over Iraq…and it hasn’t done much good in spite of some libertarian’s call to piracy.

  5. Greg says:

    In John Bogle’s “The Battle for the soul of Capitalism”, he says that in the last 20 years, money managers have stolen 1/5th of the value of the stuff that they’ve been managing, the financial derivatives and hedge funds. They pull down 300M paychecks w/ 500M bonuses. (I’m paraphrasing slightly). Ownership society & industrialism no longer work. The inflation of oil futures was a symptom of this larger problem.
    Soon, we will be at a juncture where we need to be discussing what to do next. We need be able to centralize the financial power of a community more locally within itself. You already see this in the slow food movement and other things.

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