Rising Gas Prices

[fltoo]

I saw a couple of golf carts this weekend. I would not have thought anything of it unless I had read your post!

[fltoo]

All of our markets, stock, forex, etc. are a form of gambling....for the trader!

The futures market is absolutely necessary for the producer and consumer.
Be grateful that we have investors that "gamble" on them.

If not for the futures market, producers such as farmers, etc. would be in dire straits.

They need the guarantee that the futures market gives them. It is a "hedge" that they count on.

I hope this gives you a better understanding of the futures market and doesn't make the confusion worsen.

[Cali]

Where I live at you can drive them on the streets. Almost everyone has them. They are specifically used for driving on the streets.

But much more importantly at the moment, what do you think about the golf carts on city streets??? That I can concentrate on right now.
ep

[JRScott]

I don't know if you can insure the golf carts or not, but yeah I bet it would be so high that it indeed would really just cut the savings from gas you experienced.

[epiphany]

Had he been going any faster he would most likely have killed the golf cart driver.

Hey, that just made me think of something else...wouldn't it be awfully hard to get insurance?? And if you could, wouldn't that offset the savings from the price of gas? I would think so.

I just find it comical.

ep

[JRScott]

Depends on the traffic area. There is also Albany, Georgia. My folks live there. Not sure which Albany it is. Some streets in Albany GA are not heavy traffic and thus I could see a golf cart going safely. Here I got behind a moped at night in the dark running on the highway (no tag either). It was going like 20 mph if that.

My concern would be a high profile vehicle driver might not see such a vehicle. As an example my uncle had an accident at a golf course this past year. A golf cart pulled up to the right of him as he was turning. Fortunately noone was killed but his SUV took damage to the front passenger fender and lost the front bumper. Had he been going any faster he would most likely have killed the golf cart driver.

[epiphany]

There is plenty of information out there that the current hike in oil prices is directly related to speculation.

As I said, that's what I currently believe. I have not had time to read all the posts here yet...I am not in a retentive mood right now. And you know I will tell you both what I think once I do, whether I get blasted or not.

But much more importantly at the moment, what do you think about the golf carts on city streets??? That I can concentrate on right now.



ep

[JRScott]

Basically ep I did not post any links to other data because they are not willing to listen. There is plenty of information out there that the current hike in oil prices is directly related to speculation.

Indeed it is mostly being done by the same people who were responsible for the subprime mortgage crises. They are trying to recover their losses I guess before folks find out how bad it really is. Unfortunately our economy is like a house of cards, remove one card and the house begins to collapse. Drastic measures are needed to put things in order and it will not be a painless process.

[epiphany]

Thank-you ep. The Futures markets are for professionals and so most of the general public have no idea how they work or why they exist. This appears to include certain Congressmen and politicians intent on using them as a scapegoat.

Well I haven't had time to digest the recent posts from you or your nemesis yet (this will require some concentration) but I will try and decipher them soon. I am currently of opinion that there are plenty of "evil speculators" out there but I have an open mind.

I just looked for this thread again cause I wanted to post that I just heard on the radio that Albany (I am assuming New York, but didn't catch the state) has just legalized driving golf carts on city streets due to the high price of gas!

LMAO! I can't wait to see them try to do that here in Los Angeles.

ep

[WhatMoney]

WhatMoney, thank you very much for taking the time. I never truly understood how that worked and I do now. And you did it in less than 50 pages!

ep

Thank-you ep. The Futures markets are for professionals and so most of the general public have no idea how they work or why they exist. This appears to include certain Congressmen and politicians intent on using them as a scapegoat.

BTW, I am so relieved I just discovered the Ignore function on this board, and have added someone who seemed intent on wasting my time.

[JRScott]

If they are a Hedge against changing prices, why does oil fluctuate so much each day? Why does it seem like every time I go by the gas station the price has changed? Why does it that everytime I go to the market food is higher?

If that is there intended design, they aren't working.

How dare you tell me not to vote, it is my Constitutional right. At least I see that what our nation has been doing for the last hundred years is not working, we have to change how we basically do everything or the freedoms you and I and everyone enjoys will not survive 2 or 3 generations from now. It is our very freedom that is at stake and we need to examine everything that has contributed to where we are today.

You claim I'm ignorant, yet that is the sole basis it seems of your argument. I don't know everything never claimed to. But if you are to defend what you believe is true and all you can do is delve into foul language and calling folks other names, then how strong is your own knowledge?

[WhatMoney]

Once again - Futures markets do NOT stabilize prices - they are a HEDGE against changing prices. You have not even grasped the fundamental concept of what a derivative market is. And the rest of your ideas are only reflecting your total lack of knowledge. Do us all a favor and don't vote.

[JRScott]

Basically I've not seen you build any case. You've cited one or two people and that's it, and its hardly a convincing argument. I've also not seen fit to call you names or curse at you, but sadly that seems to be what you like to do.

I'm sorry but I"m not convinced at all based on what you've provided that the futures market is in any way needed or that it in any way stabilizes prices. Indeed looking back on the recent history of it, it would seem it does exactly the opposite in many cases. I realize that you say you traded at one point and perhaps you feel defensive for an industry you used for a long time and that's normal.

It did perhaps serve a function in the 1800s when the first futures markets arose, but I'm not sure they are in any way helping today. The economy of the United States and the world has changed tremendously. All it seems to do today is drive up costs, more than to help keep costs low. Prices for agricultural products today is more governed by federal subsidies than by the futures markets. They pay farmers to grow certain groups, give incentives for others, and even pay farmers not to grow food.

If the price is guaranteed by the contract, then there is no reason to not require full payment at the time of purchase of the contract.

[WhatMoney]

You've never explained why they are needed?

You claim they are responsible for the increase in prices in several posts. If that's the case I proposed to do away with them.

You then say they are needed? You can't have it both ways.

How does the Future's market keep prices steady? They don't seem so steady right now as food and gas prices are climbing out of control?

I just fail to see the logic of your argument.

What are you a troll? LOL You've got to kidding me! You haven't read a damn thing I've written - or any of the references. Unbelievable! You understand nothing.

Here's a hint - Futures are a market, and prices in a market go up and down. ALL markets exist to set prices reflecting supply and demand and traders perception about the future. Why would you think Futures markets are supposed to keep prices study? They are a hedge against price changes. Apparently you still don't understand what a hedge is. No wonder you have such distorted ideas about the world. I refuse to repeat myself. Keep up your trolling. I'm done with you.

[JRScott]

You've never explained why they are needed?

You claim they are responsible for the increase in prices in several posts. If that's the case I proposed to do away with them.

You then say they are needed? You can't have it both ways.

How does the Future's market keep prices steady? They don't seem so steady right now as food and gas prices are climbing out of control?

I just fail to see the logic of your argument.