Wednesday, July 8, 2009
Big Money Buying and Holding Oil
"So far some 62 million barrels of gas oil and jet fuel are being stored in vessels off Europe due to poor global demand and to take advantage of an ongoing contango market -- where prices for fuel for delivery in future months is higher than now (http://www.cnbc.com/id/31793660)." While I do not and will not speak against capitalism, I do think that it benefits no one to allow large investment banks buy and hold oil until oil prices rise and then pocket the gain. America's rules pertaining to the market allow the rich to get richer and at the same time the small guy has only a small amount of capital, so in order to earn only a few bucks the small guy has to sacrifice part of his disposable income to invest. If investment banks can hold oil tankers, why doesn't America herself buy large amounts of oil, over stockpile her refineries and strategic fund, and then when prices to rise cash out the investments and return the profits to Americans through tax refunds or use the profits to pay down the deficit.
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