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"We caution against mistakenly categorizing speculation as a form of manipulation," says the...

"We caution against mistakenly categorizing speculation as a form of manipulation," says the CME, responding to the President's proposals this morning. "To use margin requirements to control cash prices is misplaced ... (this) would make the markets less efficient, less tied to fundamentals ... push hedgers out of the market ... (and) make oil more expensive for all consumers."
Comments (17)
  • montanamark
    , contributor
    Comments (1435) | Send Message
     
    are u kidding? one of the chief tools of manipulation comments on manipulation?
    17 Apr 2012, 02:58 PM Reply Like
  • Losing Paper While Gaining ...
    , contributor
    Comments (497) | Send Message
     
    He knows it well.
    17 Apr 2012, 03:24 PM Reply Like
  • westcoastinvests
    , contributor
    Comments (46) | Send Message
     
    Once again the only asset class in which speculation is considered a good thing is in equities.
    17 Apr 2012, 03:00 PM Reply Like
  • mystical44
    , contributor
    Comments (35) | Send Message
     
    Finally someone taking a stand against this out-of-control manipulation. Notice the only ones upset are those who benefit
    17 Apr 2012, 03:01 PM Reply Like
  • eabyrd
    , contributor
    Comments (311) | Send Message
     
    Are you long or short a stock? Then you're speculating!!!!!! Good grief. It's not a bad thing... in fact its what makes markets, well, markets.
    17 Apr 2012, 03:03 PM Reply Like
  • montanamark
    , contributor
    Comments (1435) | Send Message
     
    is it good when pres obama speculates on solar cos or "clean energy"
    17 Apr 2012, 03:18 PM Reply Like
  • DianeLee
    , contributor
    Comments (356) | Send Message
     
    Confusing politics with economics. Tsk. President scoring against Capitalism and deflecting blame for high gas prices and poor energy policy. Playing to his Base. All we need to do is recognize it for what it is, and hope somebody in position calls him out, points out facts.
    17 Apr 2012, 03:33 PM Reply Like
  • phildevoyd
    , contributor
    Comments (118) | Send Message
     
    The petroleum markets are worldwide. Anything we do stateside moves dollars and traders overseas. I submit that Mr. President's remarks are campaign statements.
    17 Apr 2012, 03:34 PM Reply Like
  • Economic Analyst
    , contributor
    Comments (2493) | Send Message
     
    Once again, oil prices are spiking... the price of a barrel of oil is up nearly 30 percent since early October.

     

    At the start of 2007, oil cost about $50 a barrel.

     

    By July of 2008, oil prices had shot to nearly $150 per barrel and then, by the end of the year, crashed to $35.

     

    In the beginning of 2011, oil prices took off again, climbing to over $110 a barrel in May.

     

    By October, the price fell to $75 a barrel, a drop of more than 30 percent over four months. Now, three and a half months later, oil prices are back up.

     

    One of the major factors driving these high prices isn’t getting enough attention: excessive speculation in the commodity markets.

     

    The Senate Permanent Subcommittee on Investigations, ... ha(s) shown how the activities of speculators – those who don’t produce or use oil, but who bet on oil price changes – have overwhelmed normal supply and demand factors and pushed up prices at the expense of consumers and American business.

     

    http://bit.ly/HR7bUj
    17 Apr 2012, 06:01 PM Reply Like
  • westcoastinvests
    , contributor
    Comments (46) | Send Message
     
    It's the same thing with stock prices. Those buying stocks in "growth" companies, that do not pay a dividend, are not "using" the stocks they buy they are speculating that more money will be printed and the nominal value of these stocks will appreciate. Somehow we have been convinced that higher stock prices should be the number one goal for every American, and while speculation is villainized in every other asset class speculation in stocks is essentially how the Fed thinks we will solve our problems.
    17 Apr 2012, 07:50 PM Reply Like
  • kmi
    , contributor
    Comments (4030) | Send Message
     
    An investment in a stock and an investment in a commodity are entities of an entirely different nature.

     

    You don't understand what is meant by 'speculation' here as the term isn't being used in the broadest sense possible.

     

    Commodities markets were set up for producers and consumers, not speculators, and were deregulated just over a decade ago, allowing speculators entry. Honest price discovery, the intent of the commodities markets, has since evaporated as financial entities push the markets around, while neither consuming nor producing the commodity.
    18 Apr 2012, 12:15 AM Reply Like
  • westcoastinvests
    , contributor
    Comments (46) | Send Message
     
    The stock market was set up to be something different then it is today as well. There is very little difference between speculating in commodities or stocks as the market exists today. The difference being that anything which brings higher stock prices is considered a good thing by the Central Banks and anything that draws money away from stocks is considered a bad thing. In my opinon until CEO pay comes down dramatically compared to the average worker, equity investments will continue to be an inefficient use of capital.
    18 Apr 2012, 02:17 PM Reply Like
  • rheimerl
    , contributor
    Comments (374) | Send Message
     
    obama is out of his mind!....no comment on coal or nat gas hitting lows???????....its called a market mr prez!
    17 Apr 2012, 07:54 PM Reply Like
  • rjj1960
    , contributor
    Comments (1366) | Send Message
     
    I am sure all the money printing doesn't help Mr. president.
    17 Apr 2012, 08:32 PM Reply Like
  • rpgpa
    , contributor
    Comments (65) | Send Message
     
    dont seem to have any problem raising margin requirments for gold and silver do ya. hmm i wonder why
    17 Apr 2012, 10:56 PM Reply Like
  • 6.5 swede
    , contributor
    Comments (95) | Send Message
     
    This is just election year politics. Playing to his base.
    If Pres O wanted lower oil prices, he could have approved the Keystone XL pipeline.
    18 Apr 2012, 01:26 AM Reply Like
  • phdinsuntanning
    , contributor
    Comments (1239) | Send Message
     
    Barack, order your CB to increase the interest rate and price will be bold in a day
    18 Apr 2012, 01:50 PM Reply Like
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