alexx

Should Oil Be Trading at $60 or $150?

Good article, but it like many others miss a key point.
If the current Congress leadership demands an immediate inquiry into the negligence and irresponsibility of our own Congress-empowered CFTC, they will find out that it has reigned over the worst commodities bubble in our history and they probably are guilty of criminal negligence in not enforcing the laws that were put in their hands. All that CFTC had to do is to intervene in the futures markets, as the eyepopping leverage has attracted thousands of new players 4-5 years ago, led by the unregulated and unreporting hedge funds, and by mandating 50% and 100% margin requirements they could have burst this bubble in its infancy.(as they were doing in the previous 25 years to sugar, copper, coffee, pork bellies,and even silver in the Hunts 1980 fiasco) But they did NOTHING in the face of doubling,tripling ang even quadrupling of oil futures, nat gas, corn, wheat, everything. Isn't it idiotic that as we all witness the crash-deleveraging of our financial derivatives in the financial markets, one can still bet with impunity in the 16 to 1, 30 to 1 leverage in the futures markets? This, shall we call it an out of control casino, is still benefiting a few at the expense of all of us.Let us all call for an immediate ban on leveraged futures trading, at least for 30-60 days, and we'll all see if there was really any truth to the "demand" for commodities when all players have to put up their cash to play.In the previous 25 years of intervention in unruly markets, NO SPECULATORS stayed in the game when they had been requested to use their money for the game. This game has got to be stopped before it ruins the modrern world as we know it.