I actually agree that the CFTC should tighten up some, and remove excessive leverage. Too bad the law was passed a year ago, Frank/Dodd, and Obama's regulators have been asleep. Maybe instead of complaining and campaigning, they should act with existing authority?
The CFTC was given authority in the Dodd-Frank Wall Street Reform and Consumer Protection Act to impose position caps on oil traders beginning in January 2011. These limits have not yet been implemented by the CFTC.
LadyJazzer wrote: I won't admit that Obama's policies have added to energy prices until you guys admit that Bush's policies did the same thing in 2008.
[snip]
I won't admit that Bush's policies added to the price of gas in 2008. Speculators did, not Bush...
May 8, 2008: 12:00 PM EDT
NEW YORK (CNNMoney.com) -- Democratic Senators are working to combat rising oil and fuel prices by attacking what many Americans see as the heart of the problem: speculative trading.
Many politicians and energy industry analysts blame oil speculators for cashing in on the fuel cost crisis and, in the process, boosting the price of oil. Hedge funds, trusts, and independent investors have also poured funds into crude oil as a hedge against the weakened dollar.
"A major contributor [to high oil prices] is the rise in speculation," said Sen. Carl Levin, D-Mich, who estimated that speculation has added about $35 to a barrel of oil. "This is not a supply and demand issue."
Levin said the solution can be found in closing the loopholes that allow electronic traders to buy oil outside of the United States. Levin noted that the "Enron loophole" will be ended if President Bush signs legislation that Congress passed as part of the proposed Farm Bill.
