Erick Tippett

Recent Oil Rally: Another Crowded Trade

You think oil and natural gas prices are going lower here and
globally in the future? When China and India begin accelerating
their purchases of automobiles you will see what supply and
demand can do to oil prices in a way you have not yet witnessed!

E. Tippett
Chicago, Illinois

Three Potholes on the Road to Economic Recovery

John,

I agree with you on the monopoly money comment, in fact it echoes exactly what I said when this downturn in the market started last year.
I also agree with Mr. Poretz. The IMF and several commentators have warned that this country could be headed for a violent debacle sooner or later, especially if the middle-class folks get screwed with anything resembling more toxic bank bailout-handouts or any other form of stealth taxing tactics and socialistic corporate welfare waste!

Returning U.S. troops are reportedly being riot trained now. Somebody in Washington is not as stupid as they appear to be most of the time.

I don't think this 'training' is in anticipation of the need for crowd control during coming enthusiastic economic recovery parades, do you?

EDT
Chicago, Illinois

Economics of Oil Futures Trading, Part II

Mr. Perry

I understand your explanations concerning the economics of oil futures trading quite well. However, to expect the American public, which is woefully uneducated in economics, to grasp these concepts concerning market dynamics is rather unrealistic in my view however unfortunate.

You also mention the quote of Bloomberg's Hasset that if speculators raise the price of oil today it forces people to voluntarily
use less oil. You also personally comment that "speculators don't
recieve attention when they are lowering spot prices, but only when they are raising spot prices".

Assuming speculators are in the business of making profits, my question in view of these statements is, do speculators profit
when they are influencial in lowering spot prices as opposed to when they are raising them?