Obama acts to curb speculators

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President Obama is proposing legislation to curb manipulation of oil markets that can drive up the price of gasoline.


Obama wants to boost funding for the Commodity Futures Trading Commission to do more surveillance of the oil futures market and wants to increase the penalties for illegal market manipulation, including raising the maximum fine to $10 million from $1 million for violations.


Republicans want to cut funding for the CFTC ...





BenSteinSpeculators.jpg

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http://www.latimes.com/business/money/la-fi-mo-obama-oil-markets-20120417,0,3211330.story
 
:lol:

Wonderful. Another $52 million we don’t have, all as a means of shielding himself from scrutiny. Poll numbers are down for Obama, time to launch another investigation into high gas prices.

But some ask the obvious question: What happened to the task force on oil speculation announced to much fanfare last year?
Short answer: Nothing.


When oil and gasoline prices soared last April, President Barack Obama announced to fanfare that the Department of Justice would lead a task force designed to root out manipulation of the oil market and gouging of consumers at the gas pump.


Since then the group has met only a handful of times and has never reported to the public.


The Oil and Gas Price Fraud Working Group has met only four or five times since its creation last April 21, and most of those meetings came at the time of its inception. Back then, Obama promised that the group would “root out any cases of fraud or manipulation” and noted that its scope would include the “role of traders and speculators.”
 
if he would randomly dump a hundred million barrels of reserve oil on the futures market, then buy it back when the price drops we could accomplish more and actually profit from it......
 
PostmodernProphet said:
if he would randomly dump a hundred million barrels of reserve oil on the futures market, then buy it back when the price drops we could accomplish more and actually profit from it......
Click to expand...

Cite how this would be possible under current law, PiMP.

I won't be surprised if you can't.
 
webbway said:
Wonderful. Another $52 million we don’t have, all as a means of shielding himself from scrutiny. Poll numbers are down for Obama, time to launch another investigation into high gas prices. But some ask the obvious question: What happened to the task force on oil speculation announced to much fanfare last year? Short answer: Nothing. When oil and gasoline prices soared last April, President Barack Obama announced to fanfare that the Department of Justice would lead a task force designed to root out manipulation of the oil market and gouging of consumers at the gas pump. Since then the group has met only a handful of times and has never reported to the public. The Oil and Gas Price Fraud Working Group has met only four or five times since its creation last April 21, and most of those meetings came at the time of its inception. Back then, Obama promised that the group would “root out any cases of fraud or manipulation” and noted that its scope would include the “role of traders and speculators.”
Click to expand...

Wonderful. Webb pwned by his own linked article.

"The Federal Trade Commission launched an investigation in June 2011 into pricing anomalies in the petroleum industry. The investigation is active and ongoing. We are keenly aware of the impact high gasoline prices have on consumers, and we are moving ahead with the investigation expeditiously."

Financial-sector trade groups are suing the Commodity Futures Trading Commission, trying to block the implementation of congressionally mandated limits on how many contracts any one trader or company can control.

Historically, financial speculators who never take delivery of oil made up about 30 percent of the trading in oil futures contracts; today they're about 65 percent of the market. That's led Chilton and other critics to think that the reversed ratio explains the high and volatile oil and gasoline prices.

"The only tool regulators have in their utility belt to address excessive speculation is the ability to limit the number of contracts that a trader may control. Most of us know what too much concentration can do, and it usually isn't very pretty," he told McClatchy.

"Our position-limit rule has yet to be implemented, yet at the same time, Wall Street banks are taking the regulator to court to stop the rule from going forward. They want the ability to speculate with no limits. That's not good for markets, for our economy, or for consumers or businesses."





:lol:
 
\\(())// said:
Cite how this would be possible under current law, PiMP.

I won't be surprised if you can't.
Click to expand...

I will freely admit I have no idea what steps are required before the president can actually order the release of oil from the reserve.....I will stand by the fact, however, that if he could do so without advance warning to speculators it would have the desired effect....namely removing speculators from the oil market......and the losses they would incur (which would become our profit) would be far more effective than any court ordered penalty.......
 
PostmodernProphet said:
I will freely admit I have no idea what steps are required before the president can actually order the release of oil from the reserve.....I will stand by the fact, however, that if he could do so without advance warning to speculators it would have the desired effect....namely removing speculators from the oil market......and the losses they would incur (which would become our profit) would be far more effective than any court ordered penalty.......
Click to expand...

So you opened your PiMPly mouth (figuratively) without thinking. Thanks for admitting it.
 
\\(())// said:
So you opened your PiMPly mouth (figuratively) without thinking. Thanks for admitting it.
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you can't actually debate the merits, so you just personally attack. he has a good idea. whether it can legally happen right this second does not matter as we can change the law to make it happen if it would work. try to not be so immature.
 
PostmodernProphet said:
actually, unless you can show that he CAN'T do it, I expect there's someone else who's pimply mouth might be questioned.....
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I guess you missed the part of the Constitution that separates executive and legislative powers.

Obama asked Congress to fund a six-fold increase for surveillance and enforcement staff at the Commodity Futures Trading Commission to put "more cops on the beat" overseeing oil markets.


He also is seeking to give the CFTC new authority to raise margin requirements for traders' oil positions and stiffen civil and criminal penalties for businesses that are guilty of market manipulation to $10 million from $1 million.

 
\\(())// said:
I guess you missed the part of the Constitution that separates executive and legislative powers.

Obama asked Congress to fund a six-fold increase for surveillance and enforcement staff at the Commodity Futures Trading Commission to put "more cops on the beat" overseeing oil markets.


He also is seeking to give the CFTC new authority to raise margin requirements for traders' oil positions and stiffen civil and criminal penalties for businesses that are guilty of market manipulation to $10 million from $1 million.

Click to expand...

and is releasing oil from the reserve an executive or a legislative power?.....certainly, as your link shows, increasing oversight of commodities trading is legislative....
 
PostmodernProphet said:
and is releasing oil from the reserve an executive or a legislative power?.....certainly, as your link shows, increasing oversight of commodities trading is legislative....
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Is a president allowed to "randomly dump a hundred million barrels of reserve oil on the futures market, then buy it back when the price drops...and actually profit from it", PiMP?

PostmodernProphet said:
if he would randomly dump a hundred million barrels of reserve oil on the futures market, then buy it back when the price drops we could accomplish more and actually profit from it......
Click to expand...
 
it is the president who controls the reserve. he authorizes the dept of energy to either buy, suspend or release the reserves.

poor legion
 
\\(())// said:
Is a president allowed to "randomly dump a hundred million barrels of reserve oil on the futures market, then buy it back when the price drops...and actually profit from it", PiMP?
Click to expand...

the key word in that question is "randomly".......we already know that he doesn't need legislative approval to release the reserve or to purchase oil to replenish it......obviously, if he sold it for more than he repurchased it, we would profit......I know that when Bush released it and when Obama released the reserve they announced it first and the price dropped before they actually sold any (which I thought at the time was incredibly foolish)........perhaps he's required to do so, perhaps it's by choice.......do you know the answer?....
 
PostmodernProphet said:
the key word in that question is "randomly".......we already know that he doesn't need legislative approval to release the reserve or to purchase oil to replenish it......obviously, if he sold it for more than he repurchased it, we would profit......I know that when Bush released it and when Obama released the reserve they announced it first and the price dropped before they actually sold any (which I thought at the time was incredibly foolish)........perhaps he's required to do so, perhaps it's by choice.......do you know the answer?....
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Apparently, you don't. But that didn't stop you from commenting, did it, PiMP?

Face it - your position is simple, like yourself: if Obama does it, it's wrong.

Educate yourself, PiMP.

http://www.prophetwithoutprofit.com/tag/strategic-petroleum-reserve/
 
\\(())// said:
Educate yourself, PiMP.

http://www.prophetwithoutprofit.com/tag/strategic-petroleum-reserve/
Click to expand...

thank you....the education paid off....it confirms what I said....

And in order to tap the SPR, President Obama had to authorize it.
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definitely an executive power, not a legislative power.....now the remaining issue is whether he's required to telegraph his intent before actually dropping a hundred million barrels on the market......do you have anything to educate us on that?....
 
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