“The rising oil prices which we are currently witnessing are, however, largely being driven by market speculators.”
I read this today in the papers and I'm glad we don't have to experience it first hand anymore. It got to the point where Reina and I felt like we were going to fall over a financial cliff with every new year. We went from paying $20 to fill our gas tanks to $45. Trader Joe's was another barometer of the oil squeeze: everything from bread to milk went up 10 or 20 cents. And when the "speculation" ended and oil prices fell, many of the spiked prices stayed; while wages never rose. We left the U.S. so we could come back and afford to live in the U.S. How strange does that sound?
Furthermore, who are these "market spectators"? Are they a batch of think tank wankers that sit around and descry the future through a quartz ball? I say, we find these spectators and have a good old fashion BBQ.
(Another part of the equation to high gas prices is the Bush Effect. If people would stop saying bad things about Bush, gas will become cheaper. Haven't you noticed the correlation between his popularity ratings and gas prices!?!? Be nice and he might not make you pay more for gas.)
Wednesday, October 17, 2007
Gas Pains
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2 comments:
the speculators are largely hedge funds and banks. but speculators also include individuals trading futures and/or forward contracts on oil as a commodity.
the commodities markets are an interesting creature. you saw trading places, right? well, the scheme that eddie murphy and dan aykroyd cooked up revolved around the commodity market for frozen concentrated orange juice. there are markets for all sorts of commodities - my old man made a living in the pork bellies market. i kid you not.
anyhow, here's a decent article that explains the mechanics of the current oil marjket:
http://www.businessweek.com/bwdaily/dnflash/content/oct2007/db20071016_444676.htm
rock on.
Hi! This is Reina's friend Kate Herold. My mom sent me this link and I really enjoyed reading about all your adventures. I will keep checking back, so thanks for posting.
If you want to see pictures of our new baby, Quinn, go to this webpage.
http://www.flickr.com/photos/9347009@N08/
xoxo
kate
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