Quote:
Originally Posted by kane
Actually you can blame Bush for the speculative buyers. He was the one the decided to not regulate the way oil was traded and rejected an in work Clinton plan to regulate it. This allowed for people to control huge lots of oil with very little actual capitol. With speculation you only need to put 5% down. So you can control 1 million worth of oil for as little at 50K, this has helped drive the price way up.
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the flip side of this is that you can blame regulation of competing markets for the influx of speculative buyers into this one
if you can invest in peas potatoes and carrots freely then big bad mr. government interferes with your ability to invest in peas and potatoes, isn't it common sense that the carrot market would then receive more attention from investors?
another classic case of big government regulation gone horribly wrong.