Is it time to demand that the CFTC prophylactically impose position limits on oil speculators

[Klukie]

or should we wait until gas reaches 5 dollars a gallon?



CFTC aims for speculative commodity limits in Q1 2012

Tue Jan 18, 2011 12:00am EST


In the draft rule, the CFTC said it does not need to find that price-distorting speculation is happening -- an important comment given the large volume of both analyst research and academic work questioning the popular assumption that financial speculators caused the surge in commodity prices in 2008.

"The Commission may impose position limits prophylactically, based on its reasonable judgement that such limits are necessary," the agency said in its filing.

http://www.reuters.com/article/2011/01/18/embargoedfinancial-regulation-limits-idUSN176560920110118?feedType=RSS&feedName=everything&virtualBrandChannel=11563

[Auggie]

1. If speculation is regulated does it keep us addicted to oil?

I'm all for this, though it could be argued price spikes help drive demand/interest in more fuel-efficient automobiles and electric alternatives.

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[Klukie]

2. I feel you

For me this is more about getting speculation in line and the truth of the matter brought to light.

[Auggie]

3. Agree

I'd like to see regulation plus higher federal taxes on gasoline that helps support alternate fuels and public transit.

Yeah, fat chance