Friday, August 19, 2011

Senator Bernie Sanders Releases Government Secrets – Wall Street Manipulates Energy Just As Enron And The Regulatory Agency Responsible For Oversight Kept It Secret

“After reviewing confidential data on the holdings of oil speculators during the 2008 spike in oil prices, Sanders said, the report "clearly shows that in the summer of 2008 when gas prices spiked to more than $4 a gallon, Goldman Sachs, Morgan Stanley, and other speculators on Wall Street dominated the crude oil futures market causing tremendous damage to the entire economy."  He added, "the CFTC has kept this information hidden from the American public for nearly three years.  That is an outrage. The American people have a right to know exactly who caused gas prices to skyrocket in 2008 and who is causing them to spike today."  -- Senator Bernie Sanders

Well, it’s not like I told you so.  I could write a book on this.  It’s the exact same dynamic as Enron.  But instead of electricity, it’s oil. 

Peak oil is bullshit.  We have more oil reserves today than we knew existed the last time we were told we are running out of carbon energy.  Some day, maybe.  But today is not some day.  Instead, Wall Street hyped the oil bubble while it manipulated prices and literally created a dynamic around the world where people had to choose between energy and food.  Between energy and shelter.  Between energy and clothes for their children.  Just like they did while manipulating food commodities.  Criminals on a far greater scale than Enron.

Transparency and sunlight is the great disinfectant.  The idiot from the Futures Industry Association cited in the article who argues that releasing government data hurts client confidentiality is the biggest line of bullshit I have heard since Enron executives fed us their line of rationalized swill. 

Financial institutions should be completely banned from commodities trading.  Period.  That includes hedging for their clients.  Because Enron too made itself part of the electricity supply chain by hedging for clients as it was manipulating energy prices that killed people in California during heat waves.  Hedging while manipulating prices is a lucrative business.    In fact, let’s just ban Wall Street.  They serve no purpose.  

Notice where the Republican Party stands on all of this Wall Street regulation as cited in this article and countless other issues?  Not that the Democrats have any moral authority.  Their view of regulation is more red tape to ensure their corporate cronies lock out competition and keep markets rigged.  Like we wrote of the 2010 financial reform bill. 

Title link here.

posted by TimingLogic at 6:16 PM