Did anyone just hear Ed Schultz?

[Star]

There was a caller on who said he was a futures trader. He said that the reason we have high gas prices right now is because of unregulated futures markets.

Can anyone explain this to me? I don't know anything about the futures market.

The caller said that what's happening with gas prices now is the same thing that Enron did to California electricity.

[notadmblnd]

1. it means they're ripping us off

but we already knew that didn't we?

[Richard Steele]

2. Excellent synopsis! And YES we did!

[leftofthedial]

3. bend over and let the repuke campaign contributors

rape you AND pick your pocket while they are doing it.

Yup. EXACTLY like California in 1999 and 2000.

[Buddyblazon]

4. I didn't quite understand it either....

but I was living in Cali when that whole thing went down. And it was the event that sent me from somewhat politically aware to total political activisim.

My friend (who has a photographic memory and scours the web for articles constantly) told me one day that the whole "shortage" was false. He explained to me how they were creating these shortages to drive up prices. And this was months before everybody caught on. I told him was paranoid, as many of our friends do to us now, because the don't believe that our government could do these types of things to its citizens.

How wrong I was. I gave him my apology and told him I would not doubt him again. And I have been uber-active ever since.

[Booster]

8. I live in CA and was believing all the bullshit about there being

shortages, etc., until Bush was asked to cap energy prices and he refused; then I knew we were being fleeced big time. Oh, and the fact that Kenny Boy was his bestest friend at the time was a clue also. Now, Bush doesn't seem to know much about Kenny Boy.

[Star]

9. The caller on Ed Schulz said

a courageous President (obviously not talking about *) would be able to do something about these prices.

He also said that releasing oil from the oil reserves wouldn't harm our ability to defend ourselves, but could help reduce gas prices.

[SammyWinstonJack]

11. Congress should call for investigations.

:rofl: What am I thinking? :crazy:

[BootinUp]

5. Not an expert on futures, but heres a tutorial

Just another another racket.

http://www.accesstrading.com/optionstutorial.php

[Bluesplayer]

6. well

that clears it up....

[Star]

7. Thanks, Jim4Wes

The caller on Ed Schultz tried to explain what was going on. I think he said that oil actually costs $28/barrel right now, but on the Future's Market, the price is over $60/barrel.

I'd like to understand this more so I can explain it to other people.

[rurallib]

12. I've had this theory for a long time that Iraq

was not about oil, but disruption of the oil supply. The perceived shortage, much like the California blackouts, creates an almost an auction like atmosphere in the face of a suddenly valuable commodity. Ergo, the price gets bid up out of line to reality. Having the Chinese and Indians competing just adds to the fun.
Could the president do something? I would think that in the very least he could have a 'session' with the oil companies and futures traders and explain how high oil prices will affect the economy. That is if he cared about how the economy would be affected. If his only concern is one sector and they are affected favorably, he probably woudn't act. Also, as he did some jawboning, he could release some of the oil reserve to mitigate price rises. Note that there really hasn't been a huge push to get the oil back online in Iraq.
Also note one other effect of the Bush War of Choice. Most of what is considered "discretionary" budget money is drying up to fight the war, pay for tax cuts etc.
So once $5/ gallon gas becomes the norm, there won't be any food stamps or welfare to fall back on.

[Star]

14. That's what he said

The caller said that a courageous president could strong-arm the oil companies and get them to reduce gas prices.

Seems to me that this another good example of why regulations are needed for corporations. Our society pretty much requires that we buy gas in order to survive, and we've been pushed to buy gas-guzzlers, so now they can just raise prices indiscriminately and we have no choice but to buy it.

No mainstream alternative fuels, no decent mass-transit systems, and gas guzzling machines means more of a transfer of wealth to the wealthy.

[BootinUp]

13. here's another explanation

It also explains who the traders are and why they are doing it.

http://www.cftc.gov/opa/brochures/opafutures.htm

I've always wondered what futures were about too.

[canichelouis]

10. Big profits going right into the RNC coffers.

[burythehatchet]

15. an oil "future"

is a contract to purchase oil at a predetermined price by a predetermined date.

Ooil companies must deal in futures because they have to assure supplies at a set amount each day into the future. So they have to purchase a future in order to assure the supply.

The futures market in commodities such as silver, is very suceptible to being manipulated.

Its similar to "put" or "call" options for stocks, except its for commodities.