Oil Tops $110

[jpalmer]

I don't know about y'all. But, I am seeing 2008 all over again. The traders are going to push up oil to $150 a barrel. I was reading an article today and there was a guy who's a commodities trader who commented and said "I wanna say that we don't care about main street. We only care about our own profits, You all can kiss my a$@!"

That is exactly the kind of sentiment that I thought was coming from them. Its no longer about fundamentals or technicals anymore. Its only about emotion and whatever they say its gonna go too/ Just like this article (Below)

Oil Prices Top $110 -- Is $115 a Sure Thing? - TheStreet

last week it was $108 is $110 next?

This is a carbon copy of 2008 when the dollar was falling and oil was rising. They are hedging with oil against the dollar.

I find it real suspicious that when the government started shutting down banks. Oil tanked on the market. Supply was the same. I think it was the money being cut off.

Today, I was listening to Rush and he was talking about Obama at some Town Hall meeting. A gentlemen stood up and asked what Obama is doing about high oil. Obama basically told him nothing, and you better get a better vehicle.....

Congress is trying to get the CFTC to enact new laws. But, They are working against congress and the Lawyers from Goldman Sachs and JP Morgan are fighting it. The bill is demanding traders take supply of the oil and leverage 100% of their money into it.

Commodities need to be taken off the floor entirely. Only Farmers and transportation companies should be able to trade Futures on commodities........

Something is going to happen within the next 5 years to slow speculation down or half it altogether. Because it isn't sustainable for anybody...

 

[greg334]

Honestly, there is nothing that can be done with it and we are all at the mercy of the world oil market.

Congress is trying to get the CFTC to enact new laws. But, They are working against congress and the Lawyers from Goldman Sachs and JP Morgan are fighting it. The bill is demanding traders take supply of the oil and leverage 100% of their money into it.

I would fight too, I think government has to be out of the finance industry almost altogether and allow the market and system work. The safeguards should be simple, if at all in regulations - conventional loans, accountability for individuals, confiscation of property when serious crimes are committed.

Everyone makes Madoff out as the Hitler of the financial world but I think Geitner, Frank, Dodd and both parties are doing what he was caught doing.

Commodities need to be taken off the floor entirely. Only Farmers and transportation companies should be able to trade Futures on commodities........

Something is going to happen within the next 5 years to slow speculation down or half it altogether. Because it isn't sustainable for anybody...

First thought, this is a very marxist idea. Remove the product and put it into the hands of the worker. Seem to me I've been hearing this a lot from conservatives lately.

Second thought is how can we trust the transportation companies or the farmers, greed seems to be one of the leading value that people have, another is stupidity.

THIS is a world market issue, not a US market issue. We, the world, is at the mercy of speculators, both real time and especially future speculators. IF we the people are so dumb to believe that there are solutions for this, outside of actually having a strong dollar (which means serious and hard debt reduction for the US government), than we are in very serious trouble.

 

[jpalmer]

Honestly, there is nothing that can be done with it and we are all at the mercy of the world oil market.



I would fight too, I think government has to be out of the finance industry almost altogether and allow the market and system work. The safeguards should be simple, if at all in regulations - conventional loans, accountability for individuals, confiscation of property when serious crimes are committed.

Everyone makes Madoff out as the Hitler of the financial world but I think Geitner, Frank, Dodd and both parties are doing what he was caught doing.



First thought, this is a very marxist idea. Remove the product and put it into the hands of the worker. Seem to me I've been hearing this a lot from conservatives lately.

Second thought is how can we trust the transportation companies or the farmers, greed seems to be one of the leading value that people have, another is stupidity.

THIS is a world market issue, not a US market issue. We, the world, is at the mercy of speculators, both real time and especially future speculators. IF we the people are so dumb to believe that there are solutions for this, outside of actually having a strong dollar (which means serious and hard debt reduction for the US government), than we are in very serious trouble.

Rampant speculation isn't capitalism. Artificially inflating prices isn't capitalism. Its crony capitalism. Massive oil speculation hasn't really been a problem up until the Exxon loopholes and them changing margin requirements.

Of course those on the market will defend oil being on the market. That is their bread and butter. If you talk to oil traders they'll tell you every way to Sunday why oil should be on the market. If you talk to the rest of America you'll hear different......

The truth is. There is oil out there. the truth is, We cannot sustain prolonged growth without reasonable and sustained energy prices. Even the Saudis and OPEC are saying Oil speculation is dangerous to the world economy.

"Lets just sit back and suck it up"

NO!! I've got a business to maintain and I care about the drivers on the road and all our bottom lines!

 

[greg334]

Rampant speculation isn't capitalism. Artificially inflating prices isn't capitalism. Its crony capitalism. Massive oil speculation hasn't really been a problem up until the Exxon loopholes and them changing margin requirements.

Yes it is capitalism, it is exactly what capitalism is all about - you have one thing, I need it and I have to meet your price or don't get it.

There is no artificial inflating of prices, you don't understand the market nor understand what drive the market.

Massive oil speculation?

Yes, it is world wide - not restricted to the US.

The problem isn't with the system, the problem is with the access and how things work now compared to 50 years ago. We now have grandma speculating in Oil, where 50 years ago it was a closed system to many. When someone in Punjab Indian can play the oil market from their hobble of a home through their internet PoP or when someone 15 year old student trying out the market can buy futures, it is what pushed the price up.

The other problem is that government regulations have screwed with the system and that in turn has cause the greed factor to come into play in a lot of other areas to capture 'lost' monies.

Of course those on the market will defend oil being on the market. That is their bread and butter. If you talk to oil traders they'll tell you every way to Sunday why oil should be on the market. If you talk to the rest of America you'll hear different......

I think it should be left alone, and those who cry about it need to learn what is the actual problem with Oil - the value of OUR money.

The truth is. There is oil out there. the truth is, We cannot sustain prolonged growth without reasonable and sustained energy prices. Even the Saudis and OPEC are saying Oil speculation is dangerous to the world economy.

Yep I sort of agree but our growth has not even been a factor in any way, however we also fail to understand that we are driving China as is the rest of the world in growth. We also fail to understand that we consider India a poor backward country but they are rich beyond belief. WHICH both of those countries are leading users of oil and they are one mitigating factor involved with pricing of oil but not THE factor.

The sustaining of economies would not be an issue if there is a move off of Kenysian economics with a return to strict debt control and reduction in taxes. What people fail to understand is if we move towards the removing this idea that government needs to be involved in social and economic issues, and go towards a low debt on the national level with a serious reduction in taxes, we could insulate ourselves from say an EU economic collapse. China, Japan and India are the three we need to worry about, not the EU, SA or Australia.

The Suadis and OPEC also say they will sell every last drop of oil if they have the chance.

"Lets just sit back and suck it up"

NO!! I've got a business to maintain and I care about the drivers on the road and all our bottom lines!

Well that's what we have to do.

One thing that you may not have noticed is that Geitner is now demanding that we need to raise the debt limit again and this is why oil really spiked. Many are saying japan has been a factor while others pointed out that the stock market (another cluster*** of an indicator) has been up but it is that debt which is one major factor involved with the value of the dollar which has a direct bearing on oil and all the other commodities. Have a strong dollar, oil prices will go down.

 

[layoutshooter]

No, it is NOT speculation running up the cost, it is Obama's fault. He is acting behind the scenes with his big oil buddies to drive up the cost and in turn the value of his "shadow" oil stocks. JUST like BUSH did!

 

[jpalmer]

This is exactly what I am talking about

High Oil Prices and the Investor's Strategies - MarketWatch Video

This guy is completely ignorant when it comes to the Economy and 200 dollar oil. He says "the price of oil won't matter at that price because pretty much everybody will be driving an electric car"

Huh? Where? Where they at? Who's gonna produce 100 million electric cars in the next year and where is the money gonna come from when we have to buy them?

That isn't reality. its not even logical. its insane!

Here is whats gonna happen. Oil is going to hit $200 a barrel. Truckers will file for bankruptcy, Manufacturing will come to a halt because nobody will have any money to buy goods. So retailers will start to lay people off and soon after file for bankruptcy. State revenues will plummet because less tax dollars will be coming in from high unemployment. Car sales? pfft! Car sales will plummet. the Volt will plummet along with it.

China will sell off all our debt because the dollar will be officially worthless.

This is the problem with wall street. They have taken US out of the equation.

 

[jpalmer]

No, it is NOT speculation running up the cost, it is Obama's fault. He is acting behind the scenes with his big oil buddies to drive up the cost and in turn the value of his "shadow" oil stocks. JUST like BUSH did!

That wouldn't surprise me one bit...

 

[greg334]

This is exactly what I am talking about

High Oil Prices and the Investor's Strategies - MarketWatch Video

This guy is completely ignorant when it comes to the Economy and 200 dollar oil. He says "the price of oil won't matter at that price because pretty much everybody will be driving an electric car"

Huh? Where? Where they at? Who's gonna produce 100 million electric cars in the next year and where is the money gonna come from when we have to buy them?

That isn't reality. its not even logical. its insane!

I agree it is insane, every administration since Nixon has been saying pretty much the same thing and we are letting not just the politicians get away with it but those who are creating these green companies to cash in.

Here is whats gonna happen. Oil is going to hit $200 a barrel. Truckers will file for bankruptcy, Manufacturing will come to a halt because nobody will have any money to buy goods. So retailers will start to lay people off and soon after file for bankruptcy. State revenues will plummet because less tax dollars will be coming in from high unemployment. Car sales? pfft! Car sales will plummet. the Volt will plummet along with it.

What Volt sales?

I heard yesterday that they may cut production for Pole Town because sales are in the crapper.

If it hits $200, then the problems will be a slowing of the economy, not stopping it. I heard $250 will stop the economy but this will be a world wide crisis not just limited to the US. Who will hurt the most will be the EU and China (yes China).

Car sales are teetering on the brink of disaster again, GM and Ford appear to be doing well but that's because the Japanese companies are having problems with Japan but overall most of the sales are leases and not real sales. Leases will come back to bite the three companies in the a** again as they did the last time around - who wants to 'buy' new when they can get a slightly used car for a lot less and it looks and runs great for a long time?

China will sell off all our debt because the dollar will be officially worthless.

This is the problem with wall street. They have taken US out of the equation.

Well first wall street has nothing to do with China, they have to do with Obama, Geitner and those from Goldman who are in the administration. People are so d*mn dumb when it comes down to the economy and for some reason they equate the Dow being high with economical prosperity - it does not work that way.

Second China can't sell off our debt holdings, they have to hold on to them. What ever you hear from the idiots on the radio or on TV, the system is not like having stock and demanding payment. It does not work that way in reality. What China can do is simply not buy any treasuries in the future or demand a high interest rate.

That last thing brings up an important point, we have to raise our interest rate because it is more important to have outside investors in the country than "poor" buying houses they can't afford.