http://www.marketwatch.com/story/speculators-leave-crude-oil This is ONE thing the Gov should get involved in. High fuel prices drive consumers into a shell and low prices do more to help individuals more than any of this "stimulus" BS.
My only question is why is regulation only being contemplated? Strict regulations should be in place already.
Here's a big assumption, and likely wrong, BUT assuming GS, MS et al. aren't plying the energy dept / sec (yeah, bad assumption to start off with), they probably want to be very careful with what they do. I'm going to relate the following ****-eyed understanding of the rationale behind allowing speculators in large droves in the first place. This could be absolutely wrong and I do not represent that it is correct in any facet, but my understanding was that at one time (when, early 80s?? not sure), there were greater limitations upon who could participate in the oil futures markets. Prior to then, the oil market was a very thinly traded market and a coalition of producers such as OPEC were able to control the market very easily. As I understand, and again, who knows, but as I understand, the idea was to open it up to make the market far larger and deny producers the ability to so easily change the price of oil. I guess the idea is like the difference between throwing a 10# rock in a puddle and throwing it in a 10acre lake. SO, if the above is one of the rationales behind allowing investment banks, hedge funds, et al into the futures market, it is something they've got to take into account when considering how to limit participation.
