It’s now coming to light that the sudden oil price spike this week, coming right after last week’s downdraft, was caused by actions allowed by the CFTC to prevent the unwinding of speculative positions held by defunct Lehman Brothers. Analysts now poring through the contracts and positions estimate that if the Bush administration did not bail out Lehman’s positions and those of remaining firms which need to unwind now, oil prices would drop precipitously.
In other words, now that we know the real extent of the speculative futures positions of these giant investment houses, we see that their actions are what have pushed up commodities prices and damaged our economy. And sent additional billions to OPEC and Russia. Thanks Dubya!