Once again, oil speculators are bullying prices higher based largely on fear
and not reality. When does it stop? There needs to be an investigation and resulting punishment that is appropriate for the harm being done to multiple economies all in the name of deriving profits off largely overblown risk to current events.
Previous investigations have always been followed by more evenly tempered speculation, yet time and again prices get ratcheted up considerably. All this constant cycle does is hurt consumers while a select few make unconscionable profits and drive irrational fear whenever and wherever they can. It clearly has become a game to some in the markets, which culminated in the financial collapse of several iconic institutions in 2008. Libyan Oil does not come to the United States! Yet here we sit looking at the price of oil skyrocketing on news originating in a country that produces only 2 percent of the world’s oil. The majority of US oil, in fact, originates in Canada and Saudi Arabia. So why are the oil speculators being permitted to drive irrational fear into the marketplace? A weekend visit to my local gas station Saturday was highlighted by $3.49 a gallon regular gas. Why is the current administration not looking into the situation? Soon many lower wage workers such as retail and fast food workers will barely be able to drive to work for the week on their already stressed salaries. The fact that there has been no outcry by the masses to their constituents in Washington is almost incredible to me. Has the general public finally been brainwashed or desensitized to accept whatever the financial and commoditites market lords do in the name of profits as gospel?
Post collapse events in 2008 saw the government implement extreme and dare I say perverse utilization of tax dollars for the sake of ”rescuing” the economy. What is only too easy to see in the aftermath, when one pays close attention, is that they merely rescued the continued abusive practices of the elite and wealthy. These events are highlighted by the once again continued obscene payment of record bonuses and profit sharing on Wall Street and in corporate America, as the average American continues to struggle to make ends meet. Many are, or are on the verge of becoming homeless. How long will the majority of the American people sit idly by as their futures and the futures of their children are stolen and corrupted for the sake of the few. The United States and the American way of life is on the verge of collapse, yet our elected officials and our President seemingly turn a blind eye to real issues affecting the majority. Why were financial institutions saved at the expense of the taxpayer? Why were they bailed out while we were further entangled in the spider web that has become our national debt? How is it that institutions are still permitted to in effect enslave us through usury with ridiculously obscene interest rates on the majority of debt, particularly credit card debt?
Now is the time to wake up folks. Recent lower unemployment numbers do not reflect reality, they merely whitewash an ongoing issue, that no one wants to address. The unemployment numbers being reported do not take into account the millions who are no longer able to collect unemployment because they have exhausted all their benefits. The funds diverted to institutions through TARP and other programs should have been diverted to the American taxpayer. We should have been the ones to decide what institutions survived as we made choices where to spend our money after the gigantic taxpayer expense we received via the financial collapse of 2008. Democrat, Republican or Independent we all need to take off the rose colored glasses and stop pretending what did and is occurring is just temporary. The only way it gets fixed is if we do something about the situation besides paying lip service, talking loudly but saying nothing in the end.
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In the beginning, there was unexpected political upheaval in the Middle East, the world’s main source of oil.
Second, a few professionals who speculate on the price of oil became ‘fearful’ (that’s the right word) that the political upheaval might cause an oil shortage.
With no evidence that a real shortage was/is occurring, subsequent speculators had no choice but to also assume an actual shortage was imminent or otherwise risk losing money.
Third, speculators one after another reacted to their peers, with everyone becoming fearful of an imminent oil shortage or, worse, stoppage.
Finally, the price of gas at the pump approaches $5 dollars/gal and the White House considers opening oil reserves. Meanwhile, there is no actual change in the availability of oil throughout the world.
That’s the basic cause-and-effect chain of speculation markets. I don’t know if it technically counts as a Ponzi scheme, but this is true: your paying high prices for gas (or other commodities) ultimately derives from someone who makes lots of money from being afraid of the future (which no one can really predict anyway).