Questions for Joe Nocera on his article in the business section of the New York Times.
In the business section of today's New York Times, Joe Nocera has an article entitled,
Easy Target, but Not the Right One.
After reading this article, I sent Mr. Nocera an email, which reads as follows:
I ask you and the rest of the media to tell us all:
Who are these speculators in oil right now? Please do not use generic terms like hedge funds--no, be specific and name some names for once.
Why is insider trading allowed on the oil futures market when it's against the law on the Stock Exchange? I suppose this couldn't possibly have any effect on prices and that's why no one wants to address the issue, from Congress on down. Please explain how insider trading couldn't possibly matter to the price of oil.
Who reports physical inventories of oil? Are we dependent on the oil companies for accuracy or is there a government body overseeing these reports to ensure their accuracy? What is the allowable margin for error in these reports?
If the Saudis are pricing their oil too high, as you inferred in your article, then what is their actual asking price per barrel? Be specific. Identify who is doing the speculating, who is buying and selling futures contracts, who is selling the oil for what exact price, and who is buying oil with every intention, and the capability, to take delivery on these contracts? After all, in your article you stated that every contract requires a buyer and a seller, yet you went on to reference the futures market versus the physical market. Why are there two marketplaces for a physical commodity if speculation on the non-physical (mythical?) futures market is not seriously affecting the physical price of oil?
If supply cannot presently meet demand, then explain why there are no long lines at gas pumps anywhere in the world.
I promise to keep an open mind if you and the rest of the media would only promise to be specific.
The speculators seem to have no end of champions, but the American People appear to have none.
I looked real hard in the mirror this morning and found the usual "victim" tattooed on my forehead, but soon enough, I came across the word "target" stamped on my wallet.
I will keep an open mind, I do promise to carefully consider any answers I might uncover and/or receive, yet still I wonder who is really the easy target here?