U.S. Moves to Shed Light on "Dark Markets"-Government May Set Limits on Oil Speculators

[RamboLiberal]

Source: CBS News

It was a year ago this week that crude oil prices rocketed to a record $147 a barrel, sparking widespread outrage that speculators - like banks, hedge funds and investment giants - were behind the rise.

Ever since, the price of crude has been on a wild ride plunging as low as $34 a barrel in December before bouncing back to about $60 today.

This has fueled new concerns that - in the midst of economic turmoil - oil speculators are at it again, pumping an estimated $200 billion into the oil futures market in just the last year, reports CBS News chief investigative correspondent Armen Keteyian.

"I still think we have a lot of investment dollars flowing into dark markets," said Sen. Marcia Cantwell, D-Wash. "That is, oil being traded, energy futures being traded, on markets that aren't regulated."

In response, the Commodities Futures Trading Commission, which regulates oil and other commodities in the U.S., is dropping its historic hands-off approach. It is now considering tougher regulations that would make it harder for speculators to amass huge positions and make money timing the market.


Read more: http://www.cbsnews.com/stories/2009/07/08/cbsnews_investigates/main5145164.shtml?tag=stack

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Do it please!

[bemildred]

1. There ought not be any "dark markets".

A dark market is by definition not a free market, or even a market at all. Dark markets are rackets.

[Psephos]

8. well said n/t

[BumRushDaShow]

2. Enough

talk.

It is way past time to eliminate this nonsensical speculation from the commodities market! :mad: -OR- MAKE THEM take delivery.

[pbrower2a]

3. Bush/GOP at fault for destructive economics

Oddly, you can blame Bush on this one: by promoting the gutting of our industrial base and the real estate/subprime lending scam, Dubya did the one thing that right-wingers always accuse liberals of doing: debasing the currency. Speculators betting on oil are trying to get possession of an asset always marketable that seems to have an inherent value. Speculators who would rather have oil as an asset than US dollars have good cause to do so for now.

The last speculators in get burned... but we'd be better off if we had productive assets underpinning our wealth than blue-sky schemes and scams.

[DCKit]

4. The question we should be asking is "Where did that $200 billion (for speculation) come from?"

Followed by "How are the banks and Wall St. already in position to pay back their gubmint loans?"

Ouch. For some reason, my ass hurts.

[Purveyor]

5. Interesting. Crude oil has dropped over $10bbl over the past few weeks. Connection? eom

[bemildred]

10. All bubbles pop.

The more baseless and Ponzi-like the bubble, the sooner it pops.

[Rage for Order]

6. This move is long overdue. n/t

[girl gone mad]

7. Talk is cheap. n/t

[HCE SuiGeneris]

9. I dislike that term, "may".

I "may" also win the lottery... *sigh*

[jpak]

11. but...but...but...if they regulate oil markets, bad things will happen!!11 Atlas will shrug!!11

...and an Invisible Hand will smack us on the butt!!11

:evilgrin:

[Wednesdays]

12. K&R

:kick: