Speculators have received a large share of the blame for the extreme rise in oil and gas prices. I’m sure others who have been vilified for the pain at the pump enjoy the company.  The question must be asked:  is manipulation occurring?  If our energy markets are being manipulated, we need to know and we need to take action.  Our economy is too dependent on reasonable transportation costs to risk anything to manipulations.  However, hasty reactions are the wrong way to stop shady speculation.

When we change regulations, or enforce larger margin requirements, we may force manipulators out of certain markets.  However, we won’t make them disappear all together.  They’ll just trade one market for another.  After all, people in the business of making profits will naturally gravitate towards the path of least resistance.  Speculation is one thing, and supply is another.  One is an acute problem, and the other is a chronic condition.  Nonetheless, Congress has an obligation to address both.

This entry was posted on Tuesday, June 24th, 2008 at 9:53 am and is filed under Politics .