How come no politicians concerned about speculators pushing oil down?
Rhetorical question but had to be asked.
We are so evil when oil is going up and when comes down no one thanks us.
"The day I became a winning trader was the day it became boring. Daily losses no longer bother me and daily wins no longer excited me. Took years of pain and busting a few accounts before finally got my mind right. I survived the darkness within and now just chillax and let my black box do the work."
The following user says Thank You to liquidcci for this post:
When the stock market and realty market is going up, the big bankers and fund guys are worshiped by the media and the crowds. And when these bubbles eventually burst then the same people start blaming these greedy, money eating monsters and start shouting that they should be hanged !
The same process will repeat after a few years when new bubble will start to built up in another asset class and the game continues...
just for the sake of intellectual honesty.... i believe quite a lot of the political interest in commodities relates to index funds (ie. beta interest in the asset class), which, in fairness, are passive and long-only in nature. pension fund X decides to allocate 5% to commodities and decides that the best way to do this is through the DJUBS index, goes to swap dealer Y to put trade on, index is decomposed into futures which they turn around and buy in the market. clearly, this would artificially inflate prices for the sake of asset allocation. the effect would be temporary, but it would be felt, and the opposite would happen upon liquidation. i work for a major commodity index fund and see this happen frequently, although i should point out right away that the effect is FAR more noticeable in the smaller contracts (think deferred meats, bean oil, lumber etc) where we are a huge proportion of open interest.
The following user says Thank You to sims for this post:
