The conspiracy theorists are out in force today: lots of "I told you so!" going on today as traders point to a front page story in the WSJwhich says that the Commodity Futures Trading Commission (CFTC) will issue a report blaming wild swings in oil prices on speculators.
This follows on the heels of a Rolling Stone storyabout the alleged manipulations of Goldman Sachs. These allegations have floated around for years, but this time they seem to be hitting a stronger chord with traders, who ten years ago would have laughed off these allegations.
The question is whether they have reached an intensity great enough to actual result in some kind of additional regulatory action.
1) Traders are watching the delicate dance that is going on between President Obama, Treasury Secretary Geithnerand Chinese officials who are meeting with them in Washington, led by Vice-Premier Wang Qishan. There are the usual assurances that the Americans will maintain a strong dollar policy and protect the Chinese investment in US Treasuries, but this time they are being delivered with more force. The Chinese are worried that inflation is not far away.