Think speculators are to blame for rising commodity prices (like oil/gasoline)?
Then answer this question posed by Mark Perry:
“Question: Since oil speculators got the blame for rising prices in February, do they now get the credit for falling oil prices in May? How exactly does the “speculators cause high oil prices”crowd now explain the falling oil prices? Do speculators somehow contribute to only rising prices, but not to falling prices? Do speculators only trade when prices are rising, but somehow exit the market suddenly when prices are falling? To be fair to speculators, it seems like the popular press should be giving them credit now for the falling oil and gas prices.”
Look people, you can’t have your cake and eat it too. Either speculators move the market or they don’t. And if they do (which they don’t) then it’s symmetric: you have to give them credit for the minuses if you blame them for the pluses. In which case, looking at the price of oil relative to other prices over a long period of time, the price of oil is relatively low right now…