So it is being widely reported that the US Department of Justice is investigating those who attended a "conference" a few weeks ago in NYC discussing "trading ideas" around the globe. That's really a nice way of saying, the Feds are going to hound (and try and arrest) hedge funds and anyone else who is trying to short the euro, or short the country of Greece's bonds, or do anything that looks like the evil word "speculation". Boy, I bet you hedge funds are kicking yourselves now for giving all that money to the campaign of the man of hope and change who resides at 1600 Pennsylvania Avenue AND his merry men and women lawmakers who congregate in DC.
I know I disagree on this topic with some of the guys that I agree with on most things, but if you take away speculation in this market, I want to know where to sign up for one of those old long overcoats, a bubushka, and a cheap bottle of half drunk vodka. You know. Russia 1950s. Cause we are already headed there on a lot of things, but this would be the last straw for me.
Many still argue that oil is at an artificially high price in this depressed economy due to the "evil speculators". Yeah? How about not so long ago when oil was at $150 and people were ready to KILL the villanious oil traders in the financial markets? Cause they were propping up the price, forcing us consumers to give away our hard earned cash. Goldman Sachs even came out with a research report then that said oil was going to $200 a barrel......and fast. You know how many speculators bought oil on that report? Guess where oil is now? $80. You know how many of those speculators are bankrupt that bought at $150 (and even 140, 120, 100 thinking it HAD to go higher?).
Its the same with this Greek thing. There are lots of people who think its a moral sin to profit from someone else's misfortune. I say stop watching old reruns of Peter, Paul, and Mary singing "Koombaya". So hedge funds caught wind about this Greece thing and sold plenty. You know what? The EU might really bail Greece out. If that is true, then that's going to be close to that speculator shorting a country like Germany. Maybe that's still a good bet but it ain't a free lunch, if you catch my drift.
I'm not saying these guys should be able to do anything illegal but if they read the newspaper or the internet, talk to sources, look at charts, have their people run models (computer, not human, you filthy animals), and decide to lay down a nice wager on whether some financial instrument is going up or down, that's normal behavior. It is actually what makes the world go 'round. Leave the "speculators" alone. Or maybe talk about the fact that these same "speculators" are also buying assets that the Government WANTS/NEEDS them to buy, and driving THOSE prices up? Like maybe the S&P 500 or the Dow Jones!
So, if the Department of Justice uses our taxpayer money to investigate these matters how good does it make you feel about how Congress is spending the rest of our dough? Can't wait for the November elections? Can you?
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