Well, that's one way of saying we're being, uh, you know!
Price manipulation is a painful subject for the politically engaged. Movement conservatives have a hard time believing it given their attachment to free market ideas. And as for liberals, price manipulation is their stock-in-trade, when it is done on behalf of their constituencies. And liberal institutions are increasingly funded by Wall Street wheelers and dealers, who have access to world class pools of capital. Thus, liberal guilt propels them to castigate the rich while living off of them.
Still, It is pretty obvious at this point that speculation has become rampant in the energy markets. Speculators are an important part of the market, but unhinged speculation in a key commodity is a legitimate public concern. The world demand for oil did not double in a year, but the price did. There is also tremendous volatility in the markets, and that's where the scope for manipulation is at its most promising.
The Commodities Futures Trading Commission recently fingered Optiver Holding for attempting to "bang the close":
"The CFTC said the firm attempted to 'bang the close' by amassing large positions just before markets closed, forcing prices up, then selling them quickly, driving down prices and pocketing the difference. ...
The alleged manipulation was attempted 19 times on 11 days in March, 2007, the agency said. In at least five of those 19 times, traders succeeded in driving prices higher twice and lower three times."
While the CFTC continues to downplay the role of speculators in the rise in energy prices, they only started their special investigation in May. As they look under other rocks, who knows what will come crawling out?
The full story can be found below:
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