Artie D

Oil: If It Looks Like a Bubble...

The solution to busting the oil price bubble is simple. Drop the margin ratio allowance for speculators. The allowable margin ratio when buying crude oil futures for crude oil is 7 to 1 compared to a margin ratio of 2 to 1 for stock investors. Just drop the margin ratio on oil commodities to 2 to 1, matching the stock ratio, and the available funds used by speculators will plumet and so will the price of oil.

Oil: If It Looks Like a Bubble...

The solution to busting the oil price bubble is simple. Drop the margin ratio allowance for speculators. The allowable margin ratio when buying crude oil futures for crude oil is 7 to 1 compared to a margin ratio of 2 to 1 for stock investors. Just drop the margin ratio on oil commodities to 2 to 1, matching the stock ratio, and the available funds used by speculators will plumet and so will the price of oil.