TPS Posted September 17, 2008 Share Posted September 17, 2008 I think it's pretty clear now that speculators--investment banks, hedge funds, and others--were the ones driving oil prices, not "fundamentals." WSJ The article is from today's WSJ. Link to comment Share on other sites More sharing options...
John Adams Posted September 17, 2008 Share Posted September 17, 2008 That was a great article. Link to comment Share on other sites More sharing options...
erynthered Posted September 17, 2008 Share Posted September 17, 2008 Thanks for the heads up on that article. Nice. Link to comment Share on other sites More sharing options...
/dev/null Posted September 17, 2008 Share Posted September 17, 2008 Good find Link to comment Share on other sites More sharing options...
molson_golden2002 Posted September 17, 2008 Share Posted September 17, 2008 Ok, so money is draining out of the stock market as margins are called in so it's affected oil prices. But how about on the other side. Did prices go up because more money was available? Link to comment Share on other sites More sharing options...
TPS Posted September 17, 2008 Author Share Posted September 17, 2008 Ok, so money is draining out of the stock market as margins are called in so it's affected oil prices. But how about on the other side. Did prices go up because more money was available? Commodity prices went up because billions of dollars from investment houses poured into the futures markets driving up all prices. Some people actually believed the "professional analysts" from these same investment houses who said oil could go up to $200 a barrel. Their bubble has burst. Because they need cash to shore up all their other areas, they are liquidating their commodity investments; hence the drop in prices. Link to comment Share on other sites More sharing options...
molson_golden2002 Posted September 17, 2008 Share Posted September 17, 2008 Commodity prices went up because billions of dollars from investment houses poured into the futures markets driving up all prices. Some people actually believed the "professional analysts" from these same investment houses who said oil could go up to $200 a barrel. Their bubble has burst. Because they need cash to shore up all their other areas, they are liquidating their commodity investments; hence the drop in prices. Ok, thanks. That makes sense Link to comment Share on other sites More sharing options...
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