http://www.voxeu.org/index.php?q=node/1244
Recommended by Tyler Cowen on Marginal Revolution
http://www.marginalrevolution.com/marginalrevolution/2008/06/high-commodity.html
Friday, June 20, 2008
Thursday, June 19, 2008
Are they serious?
The proposal of Senator Lieberman to restrict trading in commodities make me wonder if legislators should be required to take a crash course in economics prior to taking office.
http://www.msnbc.msn.com/id/25267047/
While it would seem that this has a very small chance of ever passing and is therefore just political posturing, it is still frustrating to see serious people like Senator Lieberman propose such measures.
I continue to think higher gas prices, while undoubtedly challenging to household budgets, are necessary and inevitable with a finite resource like oil. The market is signaling belief that producing oil is becoming more expensive therefore demand needs to be rationed.
Assuming there is, in fact, a material volume of oil in the control of speculators (my understanding is that this is debatable) they will either: a) be proven correct in their implied prediction of impending scarcity of oil in which case they will have done us a service by causing the price rise to be more gradual allowing for a more palatable substitution to alternatives or b) be proven incorrect when the price falls in which case as they unload their accumulated oil they will cause a period of lower prices than would otherwise be experienced.
http://www.msnbc.msn.com/id/25267047/
While it would seem that this has a very small chance of ever passing and is therefore just political posturing, it is still frustrating to see serious people like Senator Lieberman propose such measures.
I continue to think higher gas prices, while undoubtedly challenging to household budgets, are necessary and inevitable with a finite resource like oil. The market is signaling belief that producing oil is becoming more expensive therefore demand needs to be rationed.
Assuming there is, in fact, a material volume of oil in the control of speculators (my understanding is that this is debatable) they will either: a) be proven correct in their implied prediction of impending scarcity of oil in which case they will have done us a service by causing the price rise to be more gradual allowing for a more palatable substitution to alternatives or b) be proven incorrect when the price falls in which case as they unload their accumulated oil they will cause a period of lower prices than would otherwise be experienced.
Monday, June 16, 2008
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