Wednesday, March 9, 2011

The SOB's wouldn't do it again, would they?



The video I hope you just watched is from January 2009, for those of you who'll point out that it came from CBS, Bill O'Rielly did a similar segment for FOX.  It's pretty rare when both ends of the political spectrum come to the same conclusion.  I'm going to carry it a little farther, in 2009 oil prices started to increase shortly after the release of TARP II funds, within a few months the price of oil had climbed into the upper $40.00 dollar range and the banks were flush again.  The Stock Market hadn't gone back up, real estate was still going down the only thing that was up was the price of oil and the banks balance sheets.  In 2008 the experts spent the spring and summer telling us oil prices were the result of supply and demand.

We all know the the supply of oil from Libya are off the market, that represents about 2% of the supply.  The price of oil is up closer to 20%.  What isn't getting as much publicity is Saudi Arabia w\has increased production more than enough to cover the loss.  I don't know how much of the lost production we could make up ourselves if it wasn't for Obama's policies, that's a blog all by itself.

Now as in 2008 the experts are telling us demand is up and inventories are down..  After hearing that just a few years ago, I'm skeptical.  I am certain there are ways not to report all all inventory. that's why this article  Will Federal Regulators Crack Down on Oil Speculation? caught my eye this afternoon, I think the author, Christopher Hayes is streching things to try and make the Republican's fault, bit a great deal of he say's makes sense.



 “The most conservative thing that can be said right now [is that] this would be no time to dismiss the role that speculation plays,” says Greenberger. ” A moderate statement is that speculation is creating volatility that is aggravating the uncertainty in the market. If you start talking to industry people, they’re pulling their hair out. American Bakers Association is going bananas. They all believe that the markets are going screwy because of Wall Street.” A host of businesses and organizations from Virgin’s Richard Branson to Oxfam all make the same case.
What Hayes overlooks is the big banks that have easy access to almost zero interest Federal Reserve cash have also been big Obama Contributors.  Goldman Sach, Citi and Bank America to name a few.  Put on a more personal level. if you could borrow $100,000,000 million at zero interest, and make yourself between 3 and 5 million in a month for shuffling paper, wouldn't you do it?  Hayes tries to lay the blame on the Republicans with this paragraph

One way to attempt to constrain these volatile mini-bubbles is for the Commodities Futures Trading Commission to impose “position limits,” essentially limits on the size of the bets that speculators can make. The New Deal–era Commodities Exchange Act gives the CFTC power to curb “excessive speculation,” and the just-passed Dodd-Frank bill explicitly calls for the CFTC to promulgate position limits.


Not surprisingly, the big Wall Street banks like Goldman Sachs don’t want this, and the two Republican members of the commission don’t favor any position limits rules with real teeth. To his great credit, CFTC Chairman Gary Gensler (a former Goldman banker I was quite critical of when nominated to the position) has taken a strong leadership position in advocating strong limits, and Democratic commissioner Bart Chilton has been supportive as well. That leaves the deciding vote in the hands of Democratic Commissioner Michael Dunn, who’s expressed misgivings
The question in my mind is not so much about Micheal Dunn's misgivings...... but why Barack Obama who is seldom shy about sticking his nose into affairs that aren't his business, is not commenting about something that clearly is




 

8 comments:

  1. American Crossroads says they are spending $750,000 to run their 60 second commercial on national cable news and business news networks
    http://politicalticker.blogs.cnn.com/2011/03/09/republican-group-takes-aim-at-unions/
    AS THE ABOVE PROVES, IT WAS NEVER ABOUT BUDGETS, IT IS A CONCERTED TEABAGGERS REPUBLICAN EFFORT TO MAKE THE PRESIDENT OF THE UNITED STATES FAIL TO WIN RE-ELECTION, BY TRYING TO STRIP ANY UNION FUNDING OR ORGANIZATION OF THE DEMOCRATIC PARTY.
    ITS THE BIG TEABAGGERS LIE, IN FLORIDA AND WISCONSIN!
    TEABAGGERS AND REPUBLICANS ARE CONFIRMED LIARS AFRAID OF UNIONS, LABOR, AND CIVIL RIGHTS...
    SHAME SHAME SHAME SHAME SHAME SHAME SHAME SHAME SHAME SHAME SHAME SHAME
    this just in...
    A NEW MICHIGAN BILL WANTS TO GIVE TEABAGGERS GOVERNOR THE RIGHT TO REMOVE ANY LOCAL OFFICIAL THAT CAN'T MAKE THEIR BUDGET AND REPLACE THEM WITH GOVERNOR APPOINTED BUSINESS MEN (UNELECTED) THE GOVERNOR THERE IS SIGNING BUDGET BILLS AND TAX CUTS FOR RICH AND BUSINESSES THAT WILL CAUSE THE LOCAL BUDGETS TO FAIL, SO HE CAN TAKE OVER THEIR CITY AND COUNTY GOVERNMENTS...

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  2. I see Florida Today's varmint decided to visit. Off topic, and spamming the same cut and paste BS on several different blogs, as always. Cayote (critter) doesn't seem to be foaming at the mouth as bad as usual this morning. At least it's not threatening 8 year old kids.

    If he'd read the blog, he might have realized that it was the big Wall Street Names, some of Obama's biggest contributors who robbed the American People and contributed greatly to causing the recession a couple years ago, and they may be at it again.

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  3. Wow...Mr. ALL CAPS, lay off the caffeine in your Kool-Aid!

    Who Won

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  4. Not a single one of 2011 stories about rising gas prices BMI examined brought up any of Obama's anti-oil policies despite the impact they could have on supply and prices.

    The Heritage Foundation wrote on Jan. 11, 2011, that only two new deepwater permits have been issues since the end of the Obama moratorium, "down 88 percent from the historical average." Heritage also said shallow-water permits are down 11 percent. The Obama administration has also cancelled four pending lease sales in Alaska and reinforced existing offshore drilling bans, which prevent exploration in 85 percent of coastal waters.

    Remember this?
    "The price of oil is... is attributed to two oil men in the White House and their protectors in the United States Senate," Pelosi said in an interview with CNN's Wolf Blitzer.

    Who Won

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  5. varmint - I think you left off one "Shame" in the first comment.

    As to defeating barry. That might be Senator McConnell's goal, but I just want to see intelligent governance and leadership. Not something barry is noted for.

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  6. Grump, I agree with you on this one. There's no shortage of oil in the US, speculators are driving up the price. The Prez needs to "step on the CFTC and should have already done it.

    Varmit introduced an off topic subject. But brought up something we ought to start worrying about. Michigan wants to allow the Governor to take over duly elected local officials jobs and replace with his own appointments, and nullifying local contract. How would we feel if Obama was given the power to similarly take over State governments. Scary huh.

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  7. Unless the President doesn't want to...I believe I still got dozens of articles from the Coast Guard News, about the Gulf mess, they show the administration didn't take a number of important steps solve the problem only took until his lack of action had been made public knowledge by the media. The ship and solution that eventually ended everything had been turned down a week into the crisis.

    As far as Michigan, there's a lot of misinformation flying around..I don't think a Governor relieving elected officials would fly in reality.

    The critter's skills are limited to his ability to slander people, write gay porn, use the abuse button to delete other peoples blogs and comments, cut n paste spam and threaten people's kids and Yeah, it can scream like a cat in heat everytime it get caught.

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  8. Critter, I really think you are a defective Obamabot. "See Obama Administration creates fake people"

    http://grumpyelder-todayimgrumpyabout.blogspot.com/2011/02/obama-administration-creates-fake.html

    If you're what Obama considers a working model, he'll get laughed out of office

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