I agree with Randy's point, but we were told by the experts that such speculation could not juice oil prices.
Jim D. wrote: >>Randy Wray presented a talk on the current financial crisis. As usual, his talk was extremely interesting and useful. Crucially, he pointed to a simple explanation for the roller-coaster behavior of the markets for commodities (oil, etc.) in recent years. Organizations such as pension funds were allowed by deregulation not only to invest their funds in commodities, but in commodity futures. Like fools, they rushed in, buying oil futures and the like. This drove prices very high. Then then pulled their funds out, having an obvious negative effect on prices. Michael Perelman Economics Department California State University Chico, CA 95929 _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
