tag:blogger.com,1999:blog-13164186.post2387201688405935505..comments2024-01-27T19:26:32.604-05:00Comments on Bubble Meter: More on Financial Speculation and Oil PricesDavidhttp://www.blogger.com/profile/11169148764438565562noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-13164186.post-24869465091334438482008-11-10T14:38:00.000-05:002008-11-10T14:38:00.000-05:00You must go back to Henry Kissinger and his phrase...You must go back to Henry Kissinger and his phrase "the structure of the oil market is so little understood". So little understood! those revealing words , written by a man who clearly did understand. Therefore, It does not surpise me all the confusion. I would suggest readers take a look at a great resource I have come across. There is a great new book "The Big Gamble" by Jose Roncal and Jose Abbo that will provide anyone with critical insight and perspective on the difference between investing, speculating and gambling. It has help me to make better inform and rational decision during the current economic turnmoilAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-42072338296575050362008-09-13T08:16:00.000-04:002008-09-13T08:16:00.000-04:00The beauty of economics is that explaining jargons...The beauty of economics is that explaining jargons can be so confusing it creates a smokescreen for the truth, until everyone are walking blind. I am an economist, and so is Krugman, and Mr. Masters im sure employs Economist with PhDs. We can debate all day, and all night, insist on our truths based on logic, churn our graphs, data, numbers and what not.<BR/><BR/>So it boils down to the consequence as the primary indicator of the preceeding action.<BR/><BR/>I dont believe in any CFTC data, nor would I believe in what the Energy Secretary will say after he so confidently declare that "there is no correlation between the volume of speculative trading and the price of oil" last June. Master may have a vested interest in his studies, but one only has to take a look at the dossier of the Energy Secretary to know where he would side with, the public or the investment banks. The CFTC on the other hand will have the motivation to hide certain facts and save some top honcho's head.<BR/>And as for Mr. Krugman, his statement that a futures contract does not reduce the amount of barrels left to consume, is exactly the reason why oil was priced so high. No one understands what he is saying, not the motorist or airline companies, not the public, not the senate. It is an argument understood only by hedge fund managers, the CFTC and the Energy Secretary.<BR/><BR/>Oh I perfectly understand what Mr. Krugman is saying and believe me, I can pick one Phd Economist to argue that speculation is the cause for price increase for every Phd Economist he can take to his side.<BR/><BR/>Bottomline is, regulate the market and stop the confusion.Anonymousnoreply@blogger.com