Soros Likens Oil Bubble to 1987 Crash: FT

[EV_Ares]

Billionaire investor George Soros will warn U.S. lawmakers Tuesday that a crash similar to the one in 1987 was not to be excluded, as "a bubble in the making" is under way in oil and other commodities, the Financial Times reported on its Web site.

Rising oil prices are due to a number of fundamental changes and factors in the market, but the relatively recent ability of investment institutions to invest in the futures market through index funds is exaggerating price rises, Soros is expected to say when he speaks in front of the Senate's Commerce Committee at 10 am New York time.

"I find commodity index buying eerily reminiscent of a similar craze for portfolio insurance which led to the stock market crash of 1987," Soros will say, according to a draft text seen by the FT.

"In both cases, the institutions are piling in on one side of the market and they have sufficient weight to unbalance it. If the trend were reversed and the institutions as a group headed for the exit as they did in 1987 there would be a crash," the draft remarks said.

rest of Soros remarks @ link: http://www.cnbc.com/id/24944108

[liberal N proud]

1. It is the great oil price craze of 2008

[KharmaTrain]

2. The Big Money Rushes In, The Fools Left Holding The Bag

Where do ya think the money is coming from to help the big banks stave off their home loan fiasco? Right out of your gas tank. The question is how much of this speculation is bubble and how much is actual price inflation...15%, 25%??? And how long can this bubble last? Just watch the big money...when the investment houses get on CNBC and start tauting investing in widget factories, you know the bubble is gonna burst. But I don't see it happening quite yet.

In the past, it's been the government that has helped burst bubbles...the fed can tighten or loosen credit, oil reserves can be opened or windfall and capital gains taxes can make it less than lucrative to invest...but we're not gonna see that from this regime. Helicopter Ben, Paulsen and this regime needs to keep the fleecing going as those benefiting the most are the ones propping up Gramps campaign and are helping with his war for profit.

If a bubble bursts, it will be in the fall...prices will fall back to $4 a gallon and people will cheer Gramps for being the savior of the economy...or so the big money thinks.

[EV_Ares]

3. U got it & by the way if interested Bernanke is going to speak about

the economy on CNBC at 9 eastern time, might be interesting.

[Liberal In Texas]

4. I suppose we'll get to bail them out too,.

Ravi Batra (who I don't always agree with) says that if we ended the commodities speculation in oil and broke up the oil companies, the price of gasoline would drop overnight.

The so called "free market" only works with regulation.