As gas prices settle to Earth, brought back by the gravity that is the unwinding of hedge fund leverage; one question remains..Why?
The government knew all along that prices were being driven up by speculators, and that the prices at the pump in no way reflected the economy of gas. Governments, oil companies and speculators were the beneficiaries of the failure to regulate, manage and put a halt to the speculative practice of purchasing mass leveraged oil contracts, and creating market prices at the expense of consumers and to the benefit of speculators.
The cost to America; in the airline industry, trucking, rail freight and travel has been stratospheric. With the death of the hedge fund and investment banks models of ridiculous leverage, speculators will by loathe to return to their ways, as their currency limits would put them at real risk, which they have no desire to know. Maybe it’s time for a road trip and a warm holiday at home.
Be careful, watchful and peaceful. Good luck!