So rumor now controls what we pay at the fuel pump?

Every time we start seeing the oil prices come down, something puts a skid mark in the undies of investors.





http://news.yahoo.com/s/ap/20080513/ap_o鈥?/a>So rumor now controls what we pay at the fuel pump?
Well this will continue to happen as long as we are in Iraq. We are slaves to the oil giants both home and abroad. We need to end our dependence on oil. We have large deposits in ';sacred areas'; that must be drilled. The rights to drill there should be given to small American owned companies.


Janie J what if you live in a rural area where there are no buses?


I am a disabled vet who lives 55 miles from the VA Hospital the government reimburses me less than 3 cents a mile one way not the round trip.So rumor now controls what we pay at the fuel pump?
The trading volumes have beein biased toward rising prices for medium and long-term futures contracts ever since the Administration started running deficits and the fed began easing monetary policy.





Rumors and such might set off a flurry of activity in one day, but that is not what is driving the general trend at this point. Investors are chasing returns and that is driving up prices and that, in turn, is affecting the economy in a way that makes commodities more attractive, and so the negative feedback cycle continues to pump this bubble up.





The smart money diversified into commodity index funds and such back in 2002 when the first Bush budgets passed. Now you are seeing a piling-on by your rank and file investors who are shifting funds around in their 401Ks and IRAs and by speculators who think they can make money off this bubble.
ITs the same thing with insurance...rates increase storm predictions reflect the need...say 10%. If those storms or losses never materialize, they never revert back to the pre-10% increased price....they keep them where they are (in effect earning an extra 10% across the board). The next year rolls through and predictions are made again, so prices increase again.





Its largely a bunch of innuendo and hype, how much is fueld by greed who knows? All I know is that our government has specific restrictions, regulations and ethical standards that are supposed to be met....yet they are rarely enforced and even more rarely punished.
Well, of course...its gas futures and futures are the most volatile of commodities trading...it makes no sense, as the people who delve in the commodities market are not the brightest of bulbs in the first place...they are constantly peeking under the bed and behind the door looking for the bogey man...then base their decisions on his existence even when they can't find him!





Makes you wonder if the gas prices are going up so severely because they are fearful of an Obama presidency...
yeah.. either they are all up in a tizzy.. in which case they are just setting us up for another ';bubble'; if this keeps on... or they are taking advantage of the situation.. in which case ';eventually'; people will get pissed and the government will either take control of the market or will apply anti-monopoly laws ... or it will get outdated and they will lose the farm....(depending on how it plays out between now and then).. at least looking back over history that is how it has happened (cotton, coal, steal, iron, electric.. take your pick)
That is one factor yes, but there are many others. Speculation is just the tip of the iceberg but it changes faster than anything else.
Make no fuss, ride my bus!