Bernie Sanders’ Leak Causes Oil Speculators to Whine About Their Exposed Racket
Last Thursday, Senator Bernie Sanders leaked documents relating to oil speculation to the Wall Street Journal, then posted the same to his website. Now oil futures traders (speculators) are complaining that they can’t do their jobs when everyone knows their secret schemes.
Senator Bernie Sanders’ campaign against oil speculators continues. Last Thursday the Senator from Vermont leaked documents to the Wall Street Journal via Tyson Slocum of Public Citizen. The following day Sanders posted the same to his website, causing the oil futures traders to cry foul.
Sanders made the following statement after viewing a list of oil traders responsible for the 2008 spike in oil prices (prepared by the U.S. Commodity Futures Trading Commission [CFTC]):
“This report clearly shows that in the summer of 2008 when gas prices spiked to more than $4 a gallon, Goldman Sachs, Morgan Stanley, and other speculators on Wall Street dominated the crude oil futures market causing tremendous damage to the entire economy. The CFTC has kept this information hidden from the American public for nearly three years. That is an outrage.
The American people have a right to know exactly who caused gas prices to skyrocket in 2008 and who is causing them to spike today. The CFTC claims they need more data to impose speculative position limits as required by Dodd-Frank. That is laughable. The American people need action to bring down gas and oil prices and they need it now, which is why I have introduced legislation with eight co-sponsors to do just that.”
The sentiment expressed by the speculators was essentially this: “Revealing this secret world of ours—this cosa nostra—prevents us from doing our jobs.” Indeed, comparisons to the Italian mafia’s cosa nostra are apt here, because a few men speculating on the prices of oil and thereby driving the price up creates a racket.
The racketeers are concerned that a “chilling effect” will be dropped on the oil futures trading like some vaporous miasma.
“The regulators have every right to know what each and every participant is doing in the market, but disclosing that information to other traders will have a severely negative effect on their ability to collect the information necessary to oversee the markets,” said John Damgard of the Futures Industry Association.
The “negative effect” on the “ability to collect the information necessary to oversee the markets” of which Damgard speaks is a merely coded concept, symbolic language, invoked by bankers and investors in order to create the idea that business will be paralyzed if it’s no longer allowed to operate in the shadows.
Perhaps if there were more transparency to this process oil prices wouldn’t shoot up as they did in 2008 and early 2011. But, if there’s one thing that we know about Wall Street and the international business world, it is this—they are more resilient than an army of cockroaches.
So scatter ‘em, Bernie. Scatter these cock-a-roaches in a big beam of light.