Take out the speculators.

Make it a requirement that only those who actually are hedging their use and sale of oil and gas are able to buy and sell oil and gas futures.

Its that simple. There is plenty of liquidity in place, the market wont miss the speculators and prices will go down.

It amazes me that while watching all the talk about oil prices on the QVC for stocks channels, that no one I have heard has talked about the role of speculators. They think its a problem for housing, even though 70 pct or more of new housing purchases are homes for the buyers. For some reason the “pundits” seem to think that price movements are driven purely by supply and demand for the commodity. What nonsense.

Thats like saying no one ever speculates on stocks. That speculators had nothing to do with the internet stock bubble.

[via Blog Maverick]