Washington would be far more dull if there wasn't splashes of humor intertwined in the lobbying done by the very wealthy. No group is more powerful than the collective interests on Wall Street and the best product out there for them is oil, especially with a barrel of oil surpassing $140 and gas prices surging past $4. With the American public screaming for something to be done, Congress (controlled by Dems) is looking to do something and oil traders are in their sights. Of course those with the oil money doth protest, so let's take a look at their strategy of "not me."
From The Washington Post:
Representatives of Goldman Sachs and Morgan Stanley, along with the trade associations for hedge funds and other financial groups, have lobbied the offices of key legislators, briefed senior staffers on committees that oversee pivotal parts of the energy markets and distributed research materials explaining their view about oil and how it's traded.
In a pair of lengthy and sometimes testy closed-door sessions in the Senate last week, executives from Goldman Sachs and Morgan Stanley, two of Wall Street's largest investment banks, made the case that their multibillion-dollar investments in energy contracts have not led to higher oil prices. Rather, they told Democratic staff members of the Energy and Natural Resources Committee that the trades allow international markets to operate efficiently and that the run-up in oil prices results not from speculation but from actual imbalances of supply and demand.
But the executives were met with skepticism and occasional hostility. "Spare us your lecture about supply and demand," one of the Democratic aides said, abruptly cutting off one of the executives, according to a staff member in the room.Another aide at the meetings warned the executives that no matter what arguments they muster, it would be hard to prevent Congress from acting. Referring to a vote earlier this year to impose new mileage standards on automobile makers, the aide said, "At 90 bucks a barrel, Congress rolled the autos for the first time in 30 years -- is it too much to think that Congress will impose more restrictions on you if oil goes to $150 dollars a barrel?"
Wow, those aides are tough talkers, but can their bosses act decisively so that Wall Street is effectively regulated? The public has had enough of the status quo and the ridiculous profits that are made by a select few in the energy market.
Supply and demand certainly has an effect on the market price, but without the speculative practices of Wall Street, oil would be at the most half of what it is trading for right now. Oil companies and those that work the contracts are making way too much money at the public's expense.
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