Placing regulatory limits on oil tradingis a terrible idea.
This is the latest example of the government sticking its nose where it doesn’t belong.
We ought to allow oil markets to trade unencumbered, without government meddling, or limits, or controls on both large and small investors.
This creates the broadest possible base and the largest possible volume. This approach — unsurprisingly — creates an efficient market.
Oil prices are continuing to fall as economic fears linger among investors. What’s so hard to grasp about this story? Look, if President Obama, Vice President Biden, and the White House advisers managed to misjudge the economy, why can’t we cut some slack for the oil traders who decided oil demand won’t be so strong?
By the way, if we would stabilize the value of the dollar, oil prices would probably be less volatile. And speaking of volatility, have you taken a look at the VIX index for stocks? It has been incredibly volatile of late. And yet I don’t hear tinhorn, flatfooted politicians calling for a limit to stocks. Do you?