Goldman Sachs Admits Record Speculation To Blame For Skyrocketing Gas Prices

[TalkingDog]

http://thinkprogress.org/green/2011/04/13/174989/sachs-speculators-gas-prices/

Saying that “net speculative positions are four times as high as in June 2008,” investment banker Goldman Sachs “issued a warning that the price of oil has grown out of control due to excessive speculation.” The world’s largest commodity trader, Goldman Sachs told its clients that it believed speculators like itself had artificially driven the price of oil at least $20 higher than supply and demand dictate. They even admitted that their work to drive up prices has harmed the American economic recovery, pointing to “nascent signs of oil demand destruction in the US.”

Ed Schultz, who’s been one of the few voices in the media sounding the alarm about unregulated speculators, yesterday bashed Fox News for selling the “drill baby drill” line in response to the surge in the oil markets. Former commodities trader Dan Dicker explained to Schultz that the CFTC is failing its mandate to control Wall Street:

Bottom line, it is not supply and demand.

[denverbill]

1. “nascent signs of oil demand destruction in the US.” Good, finally.

Let's hope the speculators lose their asses when the oil price bubble bursts and consumers don't get fooled by low oil prices and start driving Hummers again. Of course, we'll probably just bail out the speculators.

[taterguy]

9. There will be lots of collateral damage if that happens

US oil demand only shrinks when fewer people go to work, or go on vacation which employs people.

Fleet mileage continues to go up a bit but few people are changing how they get around. They just go fewer places.

[Yo_Mama]

19. US Oil demand is already shrinking and has been

To the extent that this due to increased efficiencies, it is a net long-term gain for the economy. But the suddenness of this indicates that money flows account for a great deal of the rise in oil prices:


What happens in the US happens in other countries also.

[Angry Dragon]

2. Make them reimburse everyone for the extra expense

[Loge23]

3. Hasn't been about S&D for some time now

This seems to happen every so often: the pigs return to the trough, fatten up, and the prices level off.
A month or two later the oil companies post record profits and no one notices since the prices are relatively low again.
Maybe if a few "speculators" were finally tied to oil companies then perhaps the rest of the planet may get it.
Maybe if the dopes in the media would stop broadcasting mis-leading information - such as threats that may cause the price to rise, but aren't - then people would wake the f^$* up .
Maybe if people took to the streets at oil company headquarters and other evil places like Goldman Sucks and protested non-violently in a manner to disrupt their business, then this BS may stop.

But, naaaah, we'll just pay it.

[liberal N proud]

4. We are all just pawns in their high stakes chess game.

[banned from Kos]

5. article is from April 2011. Crude went to $115 last spring, iirc.

crude is now $102/bbl.

Anyway, their long spec positions failed since crude fell below $90 last summer.

[TalkingDog]

17. Yeah, but in April the Republicans weren't using gas prices as an "issue" against Obama.

Now they are, and it's time to remind people why prices are through the roof. And it's definitely NOT Obama's energy policies.

[Initech]

6. Grr... Speculation trading should be illegal.

It's theft at this point.

[stufl]

7. First it was mortgages. Now it's oil and food.

The world suffers and few get incredably wealthy.

WHAT IS WRONG WITH US THAT WE DO NOT STOP THIS UNBELIEVABLY BAD BEHAVIOR.

The financial industry no longer provides customer service and investment advice. They speculate, make themselves rich at everyone else's expense and we do nothing about it.

C'mon, read a book, become aware and stop this stuff!

[JDPriestly]

8. My gratitude to Ed Schultz.

[annabanana]

10. "Rising Gas Prices Give G.O.P. Issue to Attack Obama". .

Funny that this should be the major talking point this morning, and not the OP. .

[babylonsister]

11. Old article. I wonder what they're saying now. nt

[russspeakeasy]

12. For christs sake...at least take food and fuel off the speculators list

of ways to screw the public.

[madrchsod]

13. make the traders take possession of those commodities..

tax each share traded or tax the amount they are holding. that woulds separate the gamblers from the long term investors.

[pansypoo53219]

14. when do we bomb goldman suxs

as enemy of the state?

[girl gone mad]

15. Duh.

This is your reward for bailing them out, morons.

[WillyT]

16. Huge K & R !!!

[fascisthunter]

18. Are they not a "person".... sounds like they deserve a life in....... PRISON! CONTROLLED!

well?

[annabanana]

20. Kicking to counter the crap narrative , "Gas prices up, Trouble for the Prez"

(which was all over cable today.. Load of beltway shit.)

[TalkingDog]

23. Thanks, That's why I posted it even tho it's not "current"

Commodities trading didn't stop last year. The practice will continue to affect prices until somebody decides it hurts the economy. (never mind that it hurts the people)

[aquart]

21. Please destroy them. It's time.

[unkachuck]

22. "...prices has harmed the American economic recovery..."

...for national security reasons, oil should be treated as a controlled substance and those who deal with this substance should be completely regulated by the federal government....

....the lives and security of millions of Americans are being put at needless risk....

[Scuba]

24. They do the same with food. People starve to death as a result. Isn't it time?

[Celebration]

25. then the cftc needs to raise margin requirements n/t

[Vinca]

26. It would be nice is the MSM covered this.

I guess the "it's Obama's fault" is so much easier.

[RevRN]

27. Somone Has to Pay for the 2012 Election

You didn't think that all that cash that Wall Street was flooding into the 2012 elections was going to come out of their own pockets? It would have been a surprise if speculators hadn't driven up oil prices.

[sulphurdunn]

28. If the oil bubble

is about to burst the only way to save the investment position will be to bomb Iran. That will not only spike prices but will also improve the investment position in warmongering.