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Nelson: Obama backs my bill

Sen. Bill Nelson says he's got Barack Obama's support for a bill to ban the unregulated speculative trading of oil futures and other energy commodities. Nelson says the measure will cut gas prices.

It comes as Democrats rebuff GOP efforts to open more coastal areas to drilling. Obama and John McCain clashed on the issue last week and Nelson, who will unveil his bill today, says Obama is co-sponsoring the legislation.

"Clearly, unregulated speculators have bid up oil prices to unbelievable and unacceptable highs," Nelson said. "Congress needs to step in.  We need to shine a light on all the participants and put an end to excessive speculation and any unlawful market manipulation."


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The problem is that the market requires speculators to work. The social utility of futures markets is considered to be the transfer of risk, and increase liquidity between traders with different risk and time preferences, from a producer to a speculator for example.


Frank, that makes too much sense! If speculators were able to buy what they wanted at a price that the seller wanted, that would be chaos! Who could organize such chaos? Clearly, the government has to come in with price controls and ration cards to limit the price and who can buy. That type of command economy worked so well in the Soviet Union, its gotta work well here!

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