Germany in call for ban on oil speculation

Germany in call for ban on oil speculation

www.telegraph.co.uk

German leaders are to propose a worldwide ban on oil trading by speculators, blaming the latest spike in crude prices on manipulation by hedge funds.

It is the most drastic proposal to date amid escalating calls from Europe, the US and Asia for controls on market forces, underscoring the profound shift in the political climate since the credit crunch began. India has already suspended futures trading of five commodities.

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This is an idea that seriously needs to be looked at. The manipulation of the oil markets is hurting the world economy and will only get worse if something is not done soon.

www.telegraph.co.uk
(visit the link for the full news article)

On the surface, it appears to be a good idea, but I would urge extreme caution. If they can cause these price spikes with oil, they can probably do it with any commodity. I'm sure you know where I'm going with this...

The speculators might just move into the food commodity markets instead even more than they already have. If that happens, it would make the oil price spike look like a picnic by comparison.