Obama Vows Crackdown on Energy Speculators, page 1
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Topic started on 22-6-2008 @ 05:27 PM by Keyhole

Obama Vows Crackdown on Energy Speculators


ap.google.com
Sen. Barack Obama on Sunday said as president he would strengthen government oversight of energy traders he blames in large part for the skyrocketing price of oil.

The Democratic candidate's campaign singled out the so-called "Enron loophole" for allowing speculators to run up the cost of fuel by operating outside federal regulation. Oil closed near $135 a barrel on Friday — almost double the price a year ago.

"My plan fully closes the Enron loophole and restores commonsense regulation as part
(visit the link for the full news article)


reply posted on 22-6-2008 @ 05:27 PM by Keyhole
FINALLY!!! Somebody in Washington who actually even mentions the "Enron Loophole" and knows it needs to be fixed!

But, who was this guy who put this "Enron Loophole" into the bill that allowed speculators to manipulate the price of oil and where is he NOW?

Well, this is what the Obama camp says,

Obama's campaign blamed the loophole on former Sen. Phil Gramm, a Texas Republican who serves as Republican candidate Sen. John McCain's co-chairman and economic adviser. The Obama campaign accused Gramm of inserting a provision into a bill in late 2000 "at the behest of Enron lobbyists" that exempted some energy traders from government oversight.



Of course the McCain camp and Gramm deny this.

But if he IS the one who put the "Enron Loophole" in the bill, he sure is a bad choice for a presidetial hopeful to use as an adviser!

In my book, IF Gramm actually was the one who put the "loophole" in the bill, he is nothing more than a crook! He was paid off (lobbied) by a company (or group) to put a "loophole" into a bill that would allow them to manipulate the price of oil, sending the price of oil skyrocketing, and take even more money out of our pockets just so they could make a ton of money at our expense!

And no wonder McCain was agreeing so adamantly with Bush that the high price of oil was caused by supply & demand and that we need more refineries and need to open more oil fields! Look who was advising him!

He (Gramm) wouldn't be telling McCain the real reason gas prices are so high was the "Enron Loophole" that HE put in a bill!

ap.google.com
(visit the link for the full news article)

[edit on 6/22/2008 by Keyhole]

[edit on 6/22/2008 by Keyhole]


reply posted on 22-6-2008 @ 08:11 PM by Hal9000
reply to post by jetxnet

If Obama is lieing, then so are many others.

Market fundamentals such as strong oil demand in China and India, a weak U.S. dollar and geopolitical tensions in big oil producing countries "provide the best explanation for crude oil price increases," Commodity Futures Trading Commission (CFTC) Chief Economist Jeffrey Harris told a Senate panel's hearing.

Harris said his agency, which regulates futures markets, has seen "little evidence that changes in speculative positions are systematically driving up crude oil prices."

Many senators on the Energy and Natural Resources Committee disagreed, saying hedge funds and other speculators had pushed up oil prices.

"There is an orgy of speculation in the futures markets," said Democrat Byron Dorgan. "This is a 24-hour casino with unbelievable speculation."

Congress told speculators not driving up oil price

Bold emphasis added.

I don't know myself one way or another, and don't know what this loophole is, but my guess is you don't either. There is already a bill trying to close it, and if they are unsuccessful, then Obama says he will see to having it removed when he is elected.


reply posted on 22-6-2008 @ 08:43 PM by Dubyakadubla
reply to post by Keyhole


It's too late for that and Obama knows it as well. Oil Speculators have already tasted the smell of crude and although they hate the smell, they just love to swim in it. Right now it's an Oil Frenzy for speculators, they are making mare money than governments, a rich bonanza on the back of sheepheads (Taxpayers) who funded them with their taxdollars to fetch the oil @ $10 per barrel, and they are charging $150 per barrel.....WOW. Who are these speculators working for, maybe Excon or Shell fronts


reply posted on 22-6-2008 @ 09:07 PM by Hal9000
reply to post by LLoyd45

They are doing something about it already.

From the article.

Congress already has acted to close the loophole, including a provision in the huge farm bill that passed earlier this year. But Obama's campaign said the candidate would go further by requiring that U.S. energy futures be traded on regulated exchanges.


So the loophole may be gone by the time he is elected, but Obama wants to take it further. Also In the link I provided earlier, they mentioned that some other things that can be done is require a higher minimum to cover purchases, and force speculators to take delivery instead of buying and selling like day traders.



reply posted on 22-6-2008 @ 09:09 PM by Keyhole
reply to post by Boone 870


Yeah, I know, I'm not too sure if the Gramm thing is true or not.

That's why I said "if" in the opening posts.

I don't really know how you could find out who adds what little tid-bit to each bill that is passed.


reply posted on 22-6-2008 @ 09:16 PM by Boone 870
reply to post by Keyhole


This whole ''Gramm inserted a provision in late December 2000'' sounds kind of fishy to me.

Senator Gramm was one of two cosponsors of a bill written by Senator Lugar. The bill, S. 2697 (Commodity Futures Modernization Act of 2000), was introduced and scheduled for debate, but was never voted on by the Senate or the House.

The bill was picked up by the House as H.R. 4541 and was passed 377 to 4.

HR 4541 was later rolled into a larger bill (H.R. 4577) and it passed by a vote of 292 to 60 after the differences between the House version and Senate version were worked out.

I believe that the Obama campaign is being disingenuous when they point their finger at Senator Gramm, unless they want to point out the provision he inserted.


reply posted on 22-6-2008 @ 09:40 PM by Boone 870
reply to post by Keyhole


I don't really know how you could find out who adds what little tid-bit to each bill that is passed.


Unfortunately, I don't know how either. I guess it's time to put on my Google-Fu black belt and go to work.

Maybe something was slipped in while the differences between the House and Senate versions were being worked out in conference. Regardless, the revised version was passed unanimously and any potentially dishonest add-on should have been detected.
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