They Think You Are Stupid

So it is with great interest that I read this past week about the President's initial response to rising gas prices. What or who was to blame? According to the President, speculators. Nameless, faceless speculators. They are to blame for the rising price of crude oil up and the accompanying price at the pump! The problem is ... speculators and people make various bets, and they say, you know what, we think that maybe there's a 20 percent chance that something might happen in the Middle East that might disrupt oil supply, so we're going to bet that oil is going to go up real high. And that spikes up prices significantly. Now this interested me because I worked in the petroleum industry and I studied energy law at law school, and I have taken a strong interest in macroeconomics in recent years. (I read Market Ticker and Zero Hedge if you are wondering.) I'm going to disregard for this note the fact that higher gas prices are not objectionable at all to our President, despite the...(Read Full Post)