Want to Know Why Gas Prices Are so High?
June 26th, 2008 by David Weliver
On Forbes.com Monday, Charles Biderman of Trim Tabs Investment Services says that if things don’t change, escalating oil prices will topple the U.S. economy.
Though geared towards an investor audience, Biderman’s article is one of the best explanations of the rising oil prices I have read. In addition, Biderman offers our government and corporate leaders some provocative ways to put an end the stifling gas prices.
Biderman suggests:
- Regulars require investors in oil futures to disclose their oil positions so the public can see exactly who is profiting from a county crippled by high fuel costs
- Government, airlines, and other organizations with an interest in low fuel prices short oil contracts on the commodities market
- Regulars increase the margin rates for oil contracts from 7.5% to 25%, increasing the amount of cash speculators need to control oil contracts
Do you think our government should step in to reduce fuel prices? What steps do propose they take?
