Why is gas so high?
July 15th 2008 21:19
Category: View of the World Outside
So, just who are the freaking speculator jerks at the root of the high per barrel cost that’s driving up the price I pay at the pump for gasoline, the fuel oil I heat my house with, the diesel I use to run my farm equipment and the base ingredient for pesticides, fertilizer and god only knows what else? I want to pound the crappola out of that person, persons or group! So, I went looking. Here’s a link to start with, Click Here.
What are these damn high rollers trying to do, bankrupt each and every citizen in the USA? Greedy schmuck bastards, don’t they know some folks can’t afford the double or triple whammy that they’re laying on us common folk. It’s gotten so bad, aren’t some folks have to choose between buying groceries or fuel to get to their place of employment?
Why? Why are they doing this?
Well, sadly, with the housing slump, the devalued dollar and other issues, Investment Funds are looking for a source of reliable returns on their invested dollars-that’s how they earn their money. Using pools of investors money, they invest it and earn commissions on the amount of returns generated; no returns, no commission, no commission and they have to find other employment. And guess what, the commodities futures markets have been the most reliable source of returns.
Reduced to its simplest mechanical form, as I understand it, they bid to buy future production of barrels of oil, grains n pork bellies at and other commodities that will be available say in 90 days, with hopes to resell it based on that price with a mark it up. Which resale’s, unfortunately, affect the price for those same goods being sold now. They make serious earning based upon the shear volume of goods the take options on and that same volume affects the price of everything consumers need or want.
Who owns these investment funds? If you are investing directly with an investment fund, or receive funds from your union pension, insurance and retirement funds: you do.
The futures traders have bought up huge amounts of future commodities production and are in effect ‘hoarding’ these items, and it affects us all where we live.
This Alaskan wanted to understand a bit more.
I hope that this helps.
Raven
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Comment by katyzzz
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Comment by tlcorbin
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Comment by Market Newbie
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As a newbie, I understand how this thing works. In fact, my first wimpish rant on Orble has to do with fund managers who are using oil as hedge instrument. If I heard right, it is the most effective. Though, it is not the only choice.
But those wealthy fund managers are taking care of billions or trillions worth of dollars that belong to people who can afford not to touch their money for years on end and still live pretty much comfortably. I understand how money works. And I know how the owners of those funds want more and more of what they already have so much more of.
But just in times like this, when people are losing jobs and millions are getting hungry, can’t they understand that there are other people too in this world?
I am renting a room in a modest residential building here in Manila. Just since last January, two of my neighbors (a newly wed policeman who used to occupy the studio type room before mine and a young couple with one kid who used to stay in the unit after mine) have left “because they can no longer afford the rent.” But it is not the rent that they cannot afford. It is relatively cheap, and so far there has been no increase. It is everything else (that have all gone up because of oil) plus the rent that they cannot afford.
And check out the long queues of people in public markets who cannot afford anything else but cheap government rice… those lines keep getting longer everyday!
Sorry for taking so much of your space, but people have to understand why they have to suffer just about five times more, so we can keep rich people happy!
Comment by tlcorbin
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