Oil Speculation

At last, the government is thinking sensibly about limiting oil speculation. One wonders why every commodity has to be speculated upon. In fact, some products, oil being one of them, should have price regulations. This does not mean that oil becomes dirt cheap. In fact, the ability of oil-producing nations to limit petroleum production means that prices will likely remain fairly stable, but at a high level. The problem with speculators is that they overreact to the tiniest change in the market and get on bull and bear runs that leave the economy reeling. Personal profit does not have to come from every concievable product. Stable oil prices decided in a more rational manner helps everyone. Except for speculators.

Speculators

Can we please put to bed the myth that oil prices haven't skyrocketed because of speculators? Yes, that is not the whole story. But the idea of supply and demand is just absurd. Today, oil jumped by a mere $16? Why? Because the Democrats aren't willing to give Wall Street a complete bailout with no questions asked? The response is to invest in oil and other commodities, thus further shifting the suffering for the financial collapse on the backs of working Americans. Speculators are now making Americans pay more for key commodities, despite the fact that there is no supply and demand issues driving such a price spike.

This should not be allowed to happen. While I'm not calling for the nationalization of resources or for governments to enact strict price controls on the international commodity markets, there should be more closely regulated rules. I am comfortable calling on price caps, shutting down the markets when prices go up (and maybe also down) more than a certain percentage each day. I also support a large tax on oil profiteering and speculation.

Moreover, I oppose and deeply resent how Wall Street is forcing poor and working-class people around the world to make up for their failings. Congress should not only be investigating why the economic collapse happened and more closely regulating the financial industries. They should also be investigating who is pushing commodity prices to unreasonable heights, who is getting rich of it, and why we have such a system in the first place.

This is class warfare.