Oil Market Manipulation: If It Walks Like a Duck and Looks Like a Duck…
On Friday, an analyst from investment bank Morgan Stanley predicted that oil prices could soon rise to $150 per barrel. Sure enough, when the market opened, the price of oil futures surged nearly 10%. A self fulfilling prophecy? Perhaps. But with Morgan Stanley’s deep investment in the oil commodities market, one could draw the conclusion that this very overt market manipulation was driving the increases to their benefit. I’m not a lawyer, but I think that’s illegal.
Following up on my earlier article today on Energy Secretary Sam Bodman flinging the poo and propaganda…
Does anyone find it remotely interesting that the big runup in oil prices yesterday was due to a prediction from investment bank Morgan Stanley that oil would be $150 in a month? Can you say “market manipulation”? I knew you could. The overt practice of market manipulation is highly illegal. Rep. Bart Stupak (D-Mi), chairman of the House Energy committee is poised to look into it.
Hey, Bart - here’s a thread to pull on. The other day, Standard and Poors downgraded Morgan Stanley’s rating because of their exposure in mortgage backed securities. From a market manipulation standpoint, could Morgan Stanley have issued their “prediction” in order to drive up the value of their holdings in the petroleum commodity market, as a way to offset the downgrade due to their exposure in mortgage backed securities? Hmm? Since Morgan Stanley is one of the biggest players in the commodities market, it’s a question worth exploring.
As I said in my previous post on the topic, this certainly smells like market manipulation to a novice such as myself, but then, I’m not a securities lawyer or an oil industry expert. However, it seems as if it might be prudent not only for congress, but the SEC, FTC, and/or Department of Justice to at least make a few inquiries. Here’s a proposed revision to the FTC definition of “market manipulation” (public comments were due on 6/6):
Market manipulation shall mean knowingly using or employing, directly or indirectly, a manipulative or deceptive device or contrivance – in connection with the purchase or sale of crude oil gasoline, or petroleum distillates at wholesale – for the purpose or with the effect of increasing the market price thereof relative to costs…
The explosion in oil prices on Friday is also interesting when cast in light of the fact that both the Senate and House are putting the finishing touches on a bill that would significantly increase the cost of margin buys in the oil commodity markets.
Are energy consumers being played in a big time way? I’m not bright enough to know, but I’m thinking that someone who has the necessary smarts needs to look into it.
As I watch the oil price kabuki play out, I have to wonder about Ken Lay. If it can ever be confirmed that he is in fact dead, it would certainly explain the haunting cackles of laughter rising from the depths of hell as he exacts his revenge on Grandma Millie and the rest of us.
i’m pretty sure that, in bushworld, nothing is illegal that generates gross profits. especially if it causes suffering for regular folk.
Market Manipulation = Business as Usual
Also under “Business as Usual” take a look at
Hillary & Obama In Secret Bilderberg Rendezvous.
Then again, there is the more likely cause:
A high Israel official comments:
… An Israeli attack on Iranian nuclear sites looks “unavoidable” given the apparent failure of Western sanctions to deny Tehran technology with bomb-making potential, Transportation Minister and Deputy Prime Minister Shaul Mofaz said Friday….
Once again, the threat of Iran’s nose to Israel’s fist
All we here in the U.S. hear about is alleged, and non-existent, “threats” by Iran against “us” (Israel and/or the U.S. itself and/or “U.S. ‘interests’”). But in reality, the very real, concrete threats are all coming from the U.S. and Israel…
Not to worry: Obama promised tough action against Iran as well.
The decline and fall of the American Empire will proceed apace no matter which of the major candidates is elected president. That’s what I most of the time find so amusing about the electioneering semen-slinging.