Dow plunges 400 points on oil, jobs news

Its getting scary, and if its this low for white folks, what is it for blacks and Hispanics??And people actually want to vote for McBush?? The same guy who thinks the middle class makes $200,000 a year, and, has said economics isn't his forte?? If, oil does hit $150 a barrel before the end of summer as some have predicted, this country is going to be in big trouble.

These high crude oil prices are a direct result of speculation by Wall Street types, and some loopholes in trading regulations.

Our federal government saw fit to write loopholes into our commodity futures market regulations to allow large Wall Street firms, specifically banks and hedge funds, to manipulate crude oil prices through unregulated trading.

Morgan Stanley, to set off a speculation frenzy, announced crude oil would hit $150 per barrel which prompted massive buying based on speculation. Of course, Wall Street is selling into this speculation for equally massive profits.

These Wall Street types are also able to trade oil futures on foreign exchanges free of any regulations to contain manipulation and speculation.

This is nothing more than continuing financial crime aided and abetted by our federal government.

Another factor is a tremendous amount of cash flowing into the entire commodities market as investors move out of stocks, bonds, debt securities and real estate.

Other minor factors are the falling value of our dollar, the fear dividend and greed. This Israel and Iran standoff is a minor issue.

Leap in unemployment, this is clearly related to skyrocketing energy costs and food costs. This ties right back into crude oil prices.

Hoorah for George Bush!

Okpulot Taha Choctaw Nation

Purl Gurl, you're wrong, and you failed to mention the real driver, Asia Demand. Asian demand is not a function of U.S. regulations of futures markets or any financial regulations of any kind - and is the #1 driver to these prices. Even if we agree to disagree, whatever is driving the price of oil, be it X, Y or Z, it's not going away. This is the new reality.

Wall St. Type proclaims,

"Purl Gurl, you're wrong, and you failed to mention the real driver, Asia Demand...."

No, you are wrong. You have not performed your homework, you are unfamiliar with market forces.

Increasing demand by India and China keeps crude oil flowing, certainly, but the demand for crude oil by those two countries is moderating. Demand by those two heavyweights is not exceeding supply. Those two countries represent this simple principle of Supply And Demand, nothing more.

Current crude oil supply easily meets demand. If this is not so, if demand exceeds supply, George Bush would not beg the Saudi prince of terrorists to increase supply, yes? Rather simple logic, plus current production statistics and future projected production statistics are readily available for those who perform their homework, which does not include you.

Those production statistics and potential production statistics, both reflect supply and demand are in balance and supply can be significantly increased, easily, within one day.

Foremost reason for these truly criminal crude oil prices is Wall Street greed. Next major reason is commodity markets manipulation via loopholes designed to benefit Wall Street and to penalize American citizens.

Other contributing factors are the fear dividend, which is a fear of interuption of supplies, a shortage of refineries in America leading to our need to import refined gasoline and diesel, and a sudden influx of a lot of cash into all commodity markets through cash being moved over into more viable commodity markets creating a speculation momentum market.

True value of crude oil falls somewhere between $50 to $75 per barrel and the true value of your understanding of market forces behind the price of crude oil, is not much.

Okpulot Taha

Choctaw Nation

Wall street type if this site had a technical problem that no one else could solve but here what make you think she does not know all about financial matters as well. Why bother to argue with a sure fire Ms. Know-it-all.

This is one hot mess that Bush and cronies have go this country in, he begged the Saudis for more oil and was rebuffed, so, that speaks to his 'power.' The one thing is that this country does have to wean itself off of imported oil, after all, Saudi Arabia does not have a infinite amount, no matter what they say. And, sadly, I do have to agree with purl for the first stime since she got here, it is due a lot to speculation and futures trading and the thirst of China and India, and, then just for fun, we could throw in Venezuela that Bush has agreed with his nonsense. The oil indstry is out of control, just like Wall Street was with home loans, and, we all saw where that went.

Annabella writes, "This is one hot mess that Bush and cronies have go this country in, he begged the Saudis for more oil and was rebuffed...."

An interesting side note is Bush still provides millions and millions of dollars in military aid to Saudi Arabia and other countries of the Mideast. Last I checked, Saudi gasoline is around fifty cents a gallon.

...and America is arming their military forces and arming their terrorists, with American military gear at American taxpayer expense.

Annabella has this pegged just about right.

"A conservative calculation is that at least 60% of today’s $130 per barrel price of crude oil comes from unregulated futures speculation by hedge funds, banks and financial groups using the London ICE Futures and New York NYMEX futures exchanges and uncontrolled inter-bank or Over-The-Counter trading to avoid scrutiny. US margin rules of the government’s Commodity Futures Trading Commission allow speculators to buy a crude oil futures contract on the Nymex, by having to pay only 6% of the value of the contract. At today's price of $130 per barrel, that means a futures trader only has to put up about $8 for every barrel. He borrows the other $122. This extreme 'leverage' of 16 to 1 helps drive prices to wildly unrealistic levels and offset bank losses in sub-prime and other disasters at the expense of the overall population."

- F. William Engdahl, The Laval News, Canada

Okpulot Taha
Choctaw Nation

Cool Beans. After reading your blog I now understand "currencies trading". Thank For the great post!