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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Cogito who wrote (70974)	6/6/2008 4:01:55 PM
From: Lane3	Read Replies (1) \| Respond to of 542169

This is for Bob. What? You think he's channeling me or some such? <g>

To: Cogito who wrote (70974)	6/6/2008 4:27:05 PM
From: Katelew	Read Replies (1) \| Respond to of 542169

Yes, Allen....this is what I was arguing some weeks back about the role of excess speculation in the commodity markets. The Intercontinental Exchange, also known as ICE, appears to be the problem. Based in London, oil trades are made there electronically, not by an open outcry system, as on the Nymex in New York. It is an unregulated and relatively opaque exchange dominated by large firms. Trading on the Nymex is transparent and under the jurisdiction of the CFTC, but not on the ICE because of what is called the Enron loophole. Goldman Sachs is considered one of the top three players on the ICE. Interestingly, you may recall that GS last month predicted $200 barrel oil.....$140 by year end. Many view this as a prophecy that will become 'self-fulfilled' with GS being such a large, deep-pocketed player in oil futures on the ICE. Congress is alarmed and investigating, but the wheels move slowly, so higher oil prices will probably continue to damage the economy for some time. Very sad. Whole industries such as the airlines and small truckers are being bankrupted. The 'real' and/or 'valid' price of oil is probably closer to $80 which is hard enough on the economy.