Re: Stupidity on steroids

On Thu, 15 May 2008 20:16:39 +0000, Econotron wrote:

> "The Trucker" <mikcob@[EMAIL PROTECTED]
> wrote in message 
> news:pan.2008.05.15.19.28.30.119710@[EMAIL PROTECTED]
>>
>> Would anyone like to offer a rational explanation of why we would pump
>> 70,000 barrels of oil per day out of North Slope, ****p it to Texas, and
>> pump it back into the ground?
>>
> [snip]
>>
> The only explanation I have got is that it sets a negotiating position
for 
> the next Congress' action. Because, as soon as SPR resolution takes
effect 
> and oil prices continue to rise or stay the same, the next proposal will
be 
> releasing those reserves, as some already suggest.

That non answer makes no sense.  The question is quite broad and the
answer (if there is one) can also be quite broad.  I think I know one
_possible_ legitimate answer. but it may not be adequate either.

However...  The release of those reserves might dramatically reduce the
price of oil on world markets.  If such release can be delivered quickly
enough to bust the current speculative bubble then hedge funds and
the like which are highly leveraged would be in deed trouble. It is the
same as the Housing Bubble or any other bubble.  Such bubbles are built on
leverage that is allowed by deregulation and pumped by "securitization".

-- 
"I know no safe depository of the ultimate powers
of society but the people themselves; and
if we think them not enlightened enough to
exercise their control with a wholesome
discretion, the remedy is not to take it from
them, but to inform their discretion by
education." - Thomas Jefferson
http://GreaterVoice.org/extend