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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: mel221 who wrote (132299)	3/25/2013 11:25:33 AM
From: Wharf Rat	Read Replies (1) \| Respond to of 149317

"every liberal knows it was the greedy speculators responsible for the 2008 oil price spike." That's why I'm a progressive, and not a liberal. We read the Oildale Fed News every Friday evening, just for fun, and know better. Research Publications Economic Letter Did Speculation Drive Oil Prices? Market Fundamentals Suggest Otherwise by Michael D. Plante and Mine K. Yücel Vol. 6, No. 11, October 2011 \| Issue in PDF Oil market speculation became an especially popular topic when the price of crude tripled over 18 months to a record high $145 per barrel in July 2008. Of particular interest to many is whether speculators drove oil prices beyond what fundamentals would have otherwise justified. We explore this issue over two Economic Letters. In this article, we look at evidence from the physical market for oil and conclude that fundamentals, and not speculation, were behind the dramatic rise and fall in oil prices. In our companion Economic Letter, we examine the futures market. dallasfed.org