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[QUOTE=Duffman;34631]I still question the speculation, you can only speculate prices up for so far and for so long before someone kicks the legs out of your house of cards. Artificially high prices encourage suppliers to operate at full bore and consumers will eventually say no more and stop consuming (realistically a significant reduction). At some point the S=D equation will become out of whack and prices crash. IMO if prices survive the July-August vacation period there is no significant level of speculation involved.[/QUOTE
That's essentially what I just said in the paragraph you quoted. Hedge funds with megabucks are into this, and only have to put up ~7% to hold a chunk of production. Goldman Sachs et al get away with this because their people run our government. Just look where a slew of our Treasury secretaries have come from over the past several decades. Listen to the Diane Rehm show on NPR as noted in prior post.
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