The Commodities Futures Trading Commission has taken the extraordinary step of coming out with an investigation of oil traders who are suspected of manipulating the market in order to make unconscionable amounts of money at the expense of the American and even world economies. Now it is great that high oil prices get people to switch to mass transit, but if the CFTC can prove there was criminal wrongdoing, the bastards involved should face a long, long prison terms.
From The Washington Post:
The CFTC said its investigation started in December, before this latest surge in prices but after an earlier surge that took oil prices over $90 a barrel.
Congress has been pressing the CFTC to take tougher action to stop what lawmakers call "speculation" -- which is not illegal -- and possible unlawful manipulation of oil markets. Some lawmakers have suggested that the commission discourage speculation by increasing margin requirements so that traders would have to put up more cash to buy positions on commodity markets.
The CFTC said that in addition to the investigation, it had reached agreements with British and European regulators to share more information about oil markets. It also said it would take steps to increase transparency by getting more information from index traders and other financial players.
It was unclear whether the commission's announcements were a reaction to congressional pressure, but they were praised by many lawmakers. Rep. Edward J. Markey (D-Mass.) said he was pleased, adding that "the CFTC must vigorously pursue all leads to protect the American people from market manipulation during a time of record prices at the pump."
The real question is whether if/when the CFTC finds wrong-doing, will Congress take the appropriate actions and deal the oil industry the crushing blow that it deserves? ExxonMobil, ChevronTexaco and the rest have been figuratively raping America right along with their trader friends on Wall Street. Enough is enough, the people demand action and simply talking about how bad they are won't cut it.
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