Free market be damned say airline executives in America as oil crashes through the $140 barrel barrier.
Speculation in oil futures has always been around but apparently it is now at the 60% level, with the people buying never intending to take delivery.
So as airlines ponder ways to avoid bankruptcy by adding new charge upon new charge, they are also appealing to a higher power – the government of the United States – to put limits on speculation.
As it turns out we should likely all back their initiative since we have an economy going down the tubes, and we now find out much of it due to speculators, not real supply and demand.
If the governments of North America stepped in wouldn’t the specualtors just move to a different country to make their purchases?
The idea the executives have may be sound but can it be delivered by any government? And at some point don’t the speculators start to lose with a crash in oil prices? I think I need a lesson in world commodity realities because if it can happen in oil can’t it happen in pork chops, and corn, and water?