In the previous post, I suggested that speculation is driving oil prices higher than they should be. In this follow-up, I think I can show that oil prices are not behaving in a completely supply-demand determined way. We’ll look at price activity, volatility, and an estimate of what rational pricing might be. First, here is […]
Last Spring, some Democrats and liberals (Ed Schultz and Bernie Sanders spring readily to mind) who have somehow resisted the enlightenment of unfettered free markets suggested that high oil prices are due to speculation. Noah Smith took this subject on, asking the question: “Do speculators cause oil and/or gas prices to rise above their “natural” […]
I won’t be saying anything publicly about this one. (Cue sighs of relief from ignorant economists.) Kid Dynamite will.
by Linda Beale crossposted with Ataxingmatter Senate passes HR 4173 finance reform conference report[updated to add information on Geithner’s opposition to Warren 7:12 pm] On a 60-39 vote, the US Senate passed the Dodd-Frank H.R. 4173 financial reform conference report today. While the bill imposes some new restrictions and creates a consumer protection agency, most […]