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Skyhigh Oil: We have been Screwed !

September 11, 2008 12:19 pm

I have written on this topic several times before, but I would like you to take extra care and really absorb this today as I can’t help to feel that between the energy fiasco and Fannie/Freddie, we have been screwed. Later this week we will find out just how bad as the Commodity Futures Trading Commission (CTFC) will be releasing a report on oil market speculation.

If you have been a regular reader of MSN TopStocks over the past several months, I have been talking, writing, yelling and ranting about the obvious and rather incredible speculation that has occurred within the energy futures markets. It is remarkable how during that time, there has been a never ending stream of naysayers who have been confident that supply and demand is the only rationale for the parabolic rise of crude oil.

Now mind you, this comes from some pretty smart people who have been certain that in the short span of only a few months the world’s supply was being outstripped due to the massive industrialized growth within China and India. Then, just as fast, that all changed because (as the tale goes) the price escalation actually dampened global consumption. Come on fellas, do we really look that stupid?

Read the full article HERE

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Written by Andrew Horowitz · Category(s) Economy, Gameplan, Markets    |  Tags: •   

3 Responses to “Skyhigh Oil: We have been Screwed !”

  1. Jon Lawson on September 11th, 2008 3:50 pm

    The CFTC says, “Inconclusive”. These are the clowns who make certain we are playing on a level field?

    Can’t the just say that there was speculative forces at work, however as with any bubble we are now correcting the excesses.

    How can these people be trusted? FED, SEC, TREASURY, and now the CFTC.

    geez,

    jon

  2. Marty Rosendahl on September 12th, 2008 9:29 pm

    Being a loyal listener to the podcast, I read this and I dno’t have my old kneejerk reaction to the speculator blame game. I had to relisten to TDI podcasts to realize that we mean it’s “manipulators” and not speculators right? I mean, if I had picked up two futures contracts as oil passed up through 100 and sold it around 130 and made a profit, am I to blame because I speculated that the price of oil would go up (and put my money where my mouth was?) Nope. Manipulators is the more accurate description of it right?
    And can the Fed be trusted? Let’s see…the Fed is a privately-owned for-profit corporation that has a charter with the U.S. government to control the nation’s money supply. The owners of the Fed wrote the charter that passed congress in 1913 to give them exclusive control of the nation’s money supply. If YOU had control of a nation’s money supply, and you wrote the rulebook, and you COULD manipulate it for your for-profit company’s profit, could you be trusted with absolute power like that?

  3. Andrew Horowitz on September 14th, 2008 8:35 am

    Marty:

    Manipulation is correct. Speculation is just what the manipulators do, thought speculation in itself is not bad.

    Fed trusted… I hate to say it but …not really

    A

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