Thursday, May 3, 2012

Speculators and Manipulators

Other than killing Osama bin Laden, President Obama seems incapable of taking responsibility for anything. Blaming speculators is the latest iteration in his ongoing crusade to escape responsibility and to change the subject. He has added speculators to a long list that includes George Bush, insurance companies, greedy physicians, big oil companies, "fair share" fugitives, and Republicans in Congress. He should change his name to Barack Oblama.
Obama's specific charge is that speculators are the reason for rising gasoline prices. Robert Reich, who for some unknown reason claims to be an economist, says that "speculation by U.S. index fund traders has been raising prices by up to $1 per gallon."
Speculation can mean many things and take many forms. Basically, it is the attempt to profit from price changes.
Confusion about the role and impact of speculation has been common and recurring throughout history. Take, for example, the accusation that speculators artificially increase the price of the commodity in question.

Read more: http://spectator.org/archives/2012/05/03/speculators-and-manipulators

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