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So is our own country now anti-consumer?
Full article here:
Full article here:
The Federal Reserve, the government, and Wall Street are all bleeding the consumer—and nothing is being done to stop it, writes Ed Wallace
"It is a self-fulfilling prophecy. They can invent reasons why oil prices go to $130 or $150, but history shows that these people are capable of moving markets. It is not Exxon or BP or Shell that moves the oil markets. It is the financial players. It is the Goldman Sachs, the Morgan Stanley, or the other guys. It is a shame on the government that allows them to get away with that." —Oppenheimer oil analyst Fadel Gheit, Bloomberg TV, May 25, 2011
I recently explained here how excess liquidity lent to investors by the Federal Reserve at virtually no interest—helping investors use leverage as never before—created a maelstrom of activity in the commodities market. All that cheap money has pushed oil prices much higher than actual supply and legitimate demand would dictate. Covered also was the fact that during the campaign of 2008, when oil was nearing a new high of $147 a barrel, Presidential candidates Barack Obama and Senator John McCain (R-Ariz.) knew why and promised to fix it.
Both candidates recognized what was happening in the markets and promised to repeal the Enron loophole that was created in 2000 by the Commodities Futures Modernization Act. This essentially deregulated financial products known as over-the-counter derivatives and loosened capital requirements. It allows traders to run roughshod over our economy, pocketing excessive profits and slowing the pace of recovery.
"It is a self-fulfilling prophecy. They can invent reasons why oil prices go to $130 or $150, but history shows that these people are capable of moving markets. It is not Exxon or BP or Shell that moves the oil markets. It is the financial players. It is the Goldman Sachs, the Morgan Stanley, or the other guys. It is a shame on the government that allows them to get away with that." —Oppenheimer oil analyst Fadel Gheit, Bloomberg TV, May 25, 2011
I recently explained here how excess liquidity lent to investors by the Federal Reserve at virtually no interest—helping investors use leverage as never before—created a maelstrom of activity in the commodities market. All that cheap money has pushed oil prices much higher than actual supply and legitimate demand would dictate. Covered also was the fact that during the campaign of 2008, when oil was nearing a new high of $147 a barrel, Presidential candidates Barack Obama and Senator John McCain (R-Ariz.) knew why and promised to fix it.
Both candidates recognized what was happening in the markets and promised to repeal the Enron loophole that was created in 2000 by the Commodities Futures Modernization Act. This essentially deregulated financial products known as over-the-counter derivatives and loosened capital requirements. It allows traders to run roughshod over our economy, pocketing excessive profits and slowing the pace of recovery.
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