Sen. Bill Nelson pushes for more financial regulation to lower gas prices

[Freddie Stubbs]

Source: The Florida Times-Union

U.S. Sen. Bill Nelson says the key to keeping gas prices from climbing is tightening regulations on oil speculation.

The price of gasoline averaged $3.09 a gallon on Friday in Jacksonville, and prices have increased by about 50 cents in the past six months.

Oil prices are affected not only by supply and demand, but also by oil price futures, which are traded on the stock market. The value of oil price futures fluctuates depending on what investors think the price of oil will be in the future. When traders think oil prices will increase, they bid higher, and that causes oil prices to increase.

The number of people investing in oil has also increased since the housing market collapsed. Nelson and others have complained that commodities traders drive up the price of oil even when supply increases and demand falls.

more: http://jacksonville.com/news/florida/2011-02-13/story/sen-bill-nelson-pushes-more-financial-regulation-lower-gas-prices


Read more: http://jacksonville.com/news/florida/2011-02-13/story/sen-bill-nelson-pushes-more-financial-regulation-lower-gas-prices

[Roy Rolling]

1. Casino

With deregulation of commodity markets and shadow-banking instruments like derivatives, it is the tail wagging the dog. Speculators now move the price of commodities rather than commodity prices moving and speculators guessing what direction.

And in the end, what have they manufactured? Nothing. But if consumers are willing to pay whatever speculators pay, speculators will laugh all the way to the bank---until the bank collapses.

[Fuddnik]

2. Bill Nelson getting a clue?

What's gotten in to him lately?

[Freddie Stubbs]

3. He is still the solid Democrat he has always been

[msongs]

4. money boys think he will lose next election so they are not giving him any more graft? nt