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.
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