rrbatch

Watch for Yourself: 60 Minutes Oil Story Was Spot On

CBS has to have a scoundrel, and the evil "speculator" was trotted out to serve their "journalistic" (propaganda) end. I haven't seen anyone note that, for speculation to be profitable, there have to be limits to supply vs. demand.

In this case, slack on the supply side of crude production will provide customers alternatives to buy at lower prices than the "speculator" asks. No slack, the "speculator" ratchets up the price. Seems elementary to me.

Of course a speculator with limitless resources can "corner" the market to achieve his price objective, but I see no evidence (or possibility) that this happened in a market as big as the global oil market.

Misolarman came close to seeing this connection, and I agree with his negative view of the idiots in Washington, but opening new domestic areas to drilling obviously did not instantly increase supply.

When demand dropped (just a little), buyers had alternative supplies and the market price fell. CBS should be ashamed for not getting this point into their report.

"Speculators" BAD; investors GOOD; producers BETTER.