In the face of this:
JIDDAH, Saudi Arabia (AP) -- The U.S. energy secretary said Saturday that insufficient oil production, not financial speculation, was driving soaring crude prices. [...] "Market fundamentals show us that production has not kept pace with growing demand for oil, resulting in increasing prices and increasingly volatile prices," Bodman told reporters. "There is no evidence that we can find that speculators are driving futures prices" for oil.
I would think so.
[...as reported in Moon] "Beware of the man who does not talk, and the dog that does not bark." Cheyenne
Um, no, that's the role of market-makers. A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
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In theory. Peak oil is not an energy crisis. It is a liquid fuel crisis.
How do you reconcile higher "efficiency" with higher price volatility? The "true" price can't fluctuate as much as the "market" price does, and speculators increase volatility.
So if the tracking error increases, how can you claim price signals are strengthened? Because overshoot is good? A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
