Posted by
m0t0r1zed on Wednesday, June 18, 2008 12:26:11 AM
From USA Today ...
"The Commodity Futures Trading Commission (CFTC) will now require trades placed on the ICE Futures Europe, an electronic exchange based in London, to adhere to the same position limits and reporting standards that apply in the USA. The more stringent rules apply to the "West Texas Intermediary crude oil contract, which is linked to the New York Mercantile Exchange (Nymex) crude oil contract. The new rules, which must be met for ICE traders to access U.S. markets, take effect in 120 days.
"This change will, in effect, undo some of the regulatory differences between the CFTC and the Financial Services Authority, which oversees British trading. It will enable the CFTC to gather more detailed overseas trading information — especially on large positions — on a more frequent basis.
"The CFTC will now be able to observe a trader's full position in both U.S. and foreign futures markets to "ensure that traders are not gaming one market to influence the other," noted CFTC's acting Chairman Walter Lukken. "
Also, I listened to Rush Limbaugh a few days ago defending speculators. He is missing the point. Of course, speculators are necessary and serve a purpose. However, rampant speculation or price manipulation is the issue here. The recent, rapid spike in oil prices is not due to supply and demand. Demand has not increased anywhere near that much in such a short time span. It is speculation and a massive shift of investors into the oil market and other commodities trying to get better returns. The problem is, they're going to cripple the world economy and destabilize gov'ts. It's time to tell them to GTFO. Go into corn or gold or whatever ... just stay the hell away from oil.
I'm not one of those quick to jump on the latest "gloom and doom" bandwagon *cough cough* Glenn Beck. I never panicked over the credit or housing crises nor was I quick to proclaim a recession or depression. I prefer to take my time in looking at a problem.
Sadly, I think the oil bubble will cause a world-wide recession unless it is fixed. I don't really see a way around it. Also, all long-term oil supplies near the US better be secured through drilling / exploration to avoid future complications and potential conflicts that may arise. Other nations, such as China, may be a tad more ruthless and direct about their methods of oil acquistion. Furthermore, we better have an alternative energy source ready to replace oil in the coming decades before it becomes an issue of national defense.
Oh well, just mindless thoughts.