Doug's response jibes with my own perspective, but I was wondering about the mechanism through which the fear factor adds to oil prices in a way that is supposedly ruled out by "pure speculation."
On Sun, Jun 01, 2008 at 09:01:21AM -0400, Doug Henwood wrote: > > On May 31, 2008, at 11:58 PM, Michael Perelman wrote: > >> Speculation cannot affect prices very much. >> >> Fear about future troubles in oil producing countries add to >> the price of oil. >> >> How can these two ideas be reconciled? > > It's very difficult to separate "speculation" from the normal operations of > capitalism, though populists, who want to separate a good productive > capitalism from a bad parasitical kind, would like to. > > Doug > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu michaelperelman.wordpress.com _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
