More Liberals Trying to Limit Investment

J.J. Jackson* | June 15, 2008

Filed Under Conservative Musings, General Goofiness

Not only is Senator Carl Levin worried about people making money by taking risks. So are a bunch of other people and the calls are already going out to “limit” how much money you can make on a given trade in a given day on oil. How un-American.

A rift has opened between regulators in Washington and London after the Americans called for restrictions on oil trading in the City.

It is understood that the Financial Services Authority (FSA) is resisting calls by the US Commodity Futures Trading Commission (CFTC) to introduce daily price limits on some oil futures contracts.
The Americans also want to cap the amount of particular oil contracts that a trader can hold. The moves would limit the ability of a trading firm or individual trader to corner the market in one type of futures oil contract.

The price cap measure, which exists in American energy markets, has been devised to stem sharp rises in the price of a particular commodity. However, London regulators believe that the market should determine the price of an asset, rather than it being limited by a daily price cap.

Didn’t we try price controls on oil once? Worked good didn’t it? Sarcasm intended.

Why don’t we just pass a law that says no one can invest in oil? That should solve the problem! Yeah. And then we won’t have any oil either.

The more you regulate something the worse it becomes. But our elected officials keep suggesting that we slap more controls on ourselves it in the search for cheap political points to get reelected right.
One more chain … just one more … then we’ll be set free …
Don’t count on it.

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