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In response to: http://money.cnn.com/2008/10/13/markets/oil/index.htm?postversion=2008101314
Over the last couple of weeks, we’ve enjoyed a dramatic drop in prices. At my local gas station, it’s dropped from over $4 to $2.69 yesterday. Things were seeming to head in the right direction.
That is, until European countries decided to put more money in the hands of banks. The result is a few people in the market decided that gas prices might go up in the future, and to ensure that, bought futures. This caused the gas prices to go back up to $2.99 (30 cents difference in my area overnight!). So here’s what happens: a few people try to get rich quick, and a LOT of people pay more money to the booming oil company business.
The frustration is that this is legal, congress won’t do anything about it, and it undermines free market principles. What happened last night? Did supply suddenly plummet? Did people around the world go out and trade their sedans and compacts to SUVs in a wild rush overnight? No. This price increase is not based on supply-and-demand. This increase is based on speculators gambling on the fact that these factors might happen, and worse, the market reacting by raising the price.
This is not fair, and in fact, it is wrong, that a few people should try to get rich at the expense of the world around them. Speculation is part of the problem why gas prices shot so high to begin with. As long as oil was going up, speculators kept getting richer, and their greediness was rewarded. It is time for this to end. It is time to be fair with our commodities.
It is time for the rich to stop exploiting the poor and the working class, and getting rewarded for it.
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