[70Chip]

I note that "the experts" are now calling on regulators to increase margin requirements.

I have been calling for this since at least May 16th:

"I think the government shoult make it illegal to trade oil on margin. I think you would see the price drop right away if some of these guys were risking their own hard cash. I think the margin is currently like 5% which is ridiculous."

Most "experts" are generally 1 to 2 months behind me, depending on their field of endeavor. Everything would be so much simpler if everyone would just do what I tell them.

More May 16 brilliance from me:

"I doubt that increased demand is soley to blame for oil quadrupling in price. I think speculation is driving the increase as well. Hedge fund managers are now into oil big time. Even individuals are getting in for the ride. A friend of mine justified it by saying he had to recoup the losses he was experiencing at the pump. Money chases money. As more and more people are seeing the possibility of making money in commodities rather than stocks and bonds, the price only increases. Imagine if a bunch of moneyed investors suddenly all decided that baseball cards were a sure thing. Their sudden entry into the market would necessarily force the price of a Clemente rookie card through the roof. The question is, is this a permanent thing or at some point will gravity have it's affect. We need a crash badly. As quickly as the money went in, it will run for the exits if the price falls fast enough.

I think there are a few simple steps that could be taken to at least discourage new money from forcing up the price any further. The Democrats may serve useful here as their penchant for regulation would surely be helpful. Maria Cantwell of Washington is making this a pet issue. She's kind of a butter face but she has nice hair and seems relatively bright. It would be worth a try at any rate."