G. L. Turner

The Proposal to Limit Commodity Positions Will Hurt Free Markets and Economic Growth

Zach - Your article is throwing off signals that you are in somebody's sandbox other than the American Consumer - like maybe Government Sachs's Club, or something...come on, man -

Your closing sentences are meant to be inflammatory and are not indicative of the truth: "The assumption that the government can accurately determine value or steer prices towards a “correct” range is absurd. While it is important to make sure that one player or group of players cannot buy up all of the supply and then hold resources hostage (known as “cornering” a market), the oil and natural gas market is large enough to make this virtually impossible."

This is not waht the regs are needed for - The Gov. Is not trying to determine the value, not is it trying to steer prices- rather it needs to ensure that the markets are working for the benefit of the producers/users...not the Financial Houses that DO NOT CARE if the economy/markets work properly or not, so long as they make huge profits...these guys are so dollar focused that they have 'lost their way'.

Further, the collaborative efforts of GS, JPM and a few others have been very instrumental in 'moving prices', and then shorting the markets they helped to gin-up, quite well, thank you. (Sheeple investors, beware-)

So, in writing what you have, it is not really based on reality...

That is like the those two Republican Fortune Tellers - Bush & Cheney - telling us that the Un-contested mergers of the former US Big Oil Companies in 2004 (8 consolidating down to 3), followed by their ENRGY ACT of 2005 was going to be good for competition and the American Consumer...

Yeah right - let's see, with the small exception of 3.5 months earlier this year, since mid-2005, gasoline has been almost double to triple what it was prior to the mergers, and will trend to at least 'double and more' going forward, ever since the mergers and EA. (RBOB is now an Index play too along with Oil..)

So, give us a break, Index Funds, "Analyst Reports" broadcasted across the CNBC landscape, and people who confuse properly functioning futures markets with regulated markets, dark markets, etc. - pollute the real functions that the economy needs from the commodity markets...

Not wanting to see the TRUTH doesn't mean it 'ain't so'!

'Index Speculators' Hoarding Commodities

Thanks to iThinkBig for pointing to Goldman Sachs, truth be know, they are, in my opinion engineering much of the artificial rise in pricing...note, that their 'report' in the first week in May that was incredibly filled with 'speculation' was written over the weekend following the 'run-up' to $129 and fall off to $122 on Thursday, holding steady on Friday...but they realized that they had just been hyping the Fund managers to go into their CIF and oh no - they suddenly saw the possibility of a big run-off and they knew they would get clobbered...so better get the 'self-fulfilling speculative' report out fast - 'cause CNBC , the WSJ and many other 'WS Analysts' listen to the "GOLD Standard".... and bingo - this started the 2 week runup to $135....Notice, how the talk by the CFTC looking into the oil trading last week as caused 80% of the hedge fund positions to shift to 'short' in the last three days and prices falling from $135 to $127 in the last 4 trading days...if they were not doing something fishy, why pull out?? G

'Index Speculators' Hoarding Commodities

One other fallacy - the problem with the CIFs is that they represent a such huge pool of money - money that could continue to be 'sucked' up into the commodities via these relatively new funds. THIS WOULD CONTINUE to CAUSE HUGE Price increases with NO END IN SIGHT - again, a potential runaway freight train...Inarguable? yes, it that 'YOU CAN"T ARGUE" that they have created an enormous 'demand' for oil contracts way in advance of commercial users...think it through with an open mind...and you will see...G

'Index Speculators' Hoarding Commodities

OFFSHORE - what MAYA - he resides the US VI - WHO DO YOU WORK FOR GOLDMAN SACHS, MF GLOBAL, JP MORGAN??? Master's put his thumb on a Serious Problem - the real culprit of the last $60 dollars of price run-up. BUT HE IS RIGHT! Problem is, he is ruining THE PARTY for those who have been 'soaking' much of the world's middle-class and poor...intentionally or not via the CIFs- he has NO agenda, he just saw the TRUTH and its consequences - Thankfully, he came along hopefully just it time to prevent a complete worldwide disaster. WAKRE UP! G