Toyota Tundra Forum

Those that live in the DFW area are fortunate to have Ed Wallace (Ed Wallace's Inside Automotive) keeping an eye on the petrochemical industry. He hosts a automotive related show on Saturday mornings (Talk Radio 570 KLIF). This AM he had special guest Professor Michael Greenberger of The University of Maryland and also a former board member of the Commodities Futures Trading Commission (CFTC). They were elaborating on the current mess in deregulated energy futures and how energy prices can be manipulated by the UNREGULATED Intercontinental Exchange (ICE) based out of Atlanta (but, officially headquarted in London).

The Intercontinental Exchange took great exception to his articles in The Fort Worth Star Telegram. See these links for the articles in question:

ICE, ICE, Baby | Ed Wallace | Star-Telegram.com

and Part II:

ICE, ICE, Baby, conclusion | Ed Wallace | Star-Telegram.com

Things change. This past week the Commodities Futures Trading Commission moved to expand surveillance of ICE Futures Europe to improve oversight of this exchange, "to ensure they reflect fundamental economic forces of supply and demand." In spite of ICE's insistence that his reporting was incorrect, there is now validation in the CFTC's new position. You can read the entire story of the CFTC's changes in this link, starting at paragraph 5.

TheStar.com | Business | U.S. regulators probe crude oil market

High fuel prices are NOT a supply/demand issue.

An excerpt from Ed's article:

"In the past month we have added 11.9 million barrels of oil into our stock reserves, giving us 32.3 million more barrels of oil than we had on hand January 1. On May 5, we found out that for the second time in as many years, Iran was storing its excess crude oil on tankers in the Persian Gulf, because it had run out of storage space in the desert and was awaiting buyers for its heavy crude. That same day Saudi Arabia cut the discount price for its Arabian Heavy crude to $ 7.45 hoping to entice more buyers for immediate delivery. We didn't hear that news, either."

Prof. Greenberger testified in front of the House Committee on Energy and Commerce on December 14 of last year. Under discussion that day was the manipulation of the energy markets and prices, but Prof. Greenberger added these comments: "Three, four months from now, you're going to have a hearing on the subprime meltdown, and you're going to find that the very same legislation [deregulating energy] deregulated something called collateralized debt obligations (CDOs)." That legislation directly ties the mortgage meltdown to the high price of energy today.

It was called H.R. 5660, the Commodities Futures Modernization Act of 2000. At first this bill went nowhere in the House, not even up for debate. Then, a few months later, late one night a 242 page bill written by Wall Street lawyers, with the exact same as the former house bill, was quietly added to an 11,000 page appropriations bill, and the Enron loophole was created. The power behind that bill was one Texas Senator, one Texas Congressman and their wives. As a Texan - I am embarrassed that they were involved.

What can be done to remedy the problem?? Get in touch with your representatives and let them know you are sick and tired of high energy costs and artificial manipulation of the energy markets without regulation.

re.ac.tor

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'10 CM SR5 4x2, 5.7L, Sandy Beach Metallic, Goodyear Wrangler SilentArmor 275/55 on JTI 20", Cab Lights, Drug Information

Here's my contribution. Free Preview - WSJ.com


Politics | FTC to investigate oil firms, traders | Seattle Times Newspaper

And it's not just energy and housing where the greed is felt but also Farming. Free Preview - WSJ.com

They are predicting another crash like we experienced back in the 80's due to over inflated grain prices due to the Ethanol lies...........again. (Remember Farm Aid and John Cougars album?)

Greed is taking us all to hell.

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That and ignorance.

Thanks for the links squid.

re.ac.tor

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'10 CM SR5 4x2, 5.7L, Sandy Beach Metallic, Goodyear Wrangler SilentArmor 275/55 on JTI 20", Cab Lights, Drug Information

Nice articles guys.
What's a million dollar a day fine, if you can make billions...
Just found this article, $10 a gallon in 2 years - scary.

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5.7L RC Longbox, 4X4 SR5

TS,

With all due respect, this kind of BS put out by Goldman Sachs is no surprise and only bolsters their attempt to create the appearance of a shortage of oil. Goldman Sachs was one of the players involved in the creation of the UNREGULATED InterContinental Exchange which has played a key part in running up energry prices outside the normal law of supply and demand.

We need to get these sons of bitches re-regulated.

re.ac.tor

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'10 CM SR5 4x2, 5.7L, Sandy Beach Metallic, Goodyear Wrangler SilentArmor 275/55 on JTI 20", Cab Lights, Drug Information

Ditto. It's a bunch of bull.

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07 DC SR5 Long Bed Desert Pyrite Mica, folding rear seat mod, Raptor step bars, OEM back-up camera, "iPod in the ashtray", Toytec 3" leveling kit

I agree, image is everything in a bull market.
Unless/until something is done about re-regulating it, they (currently) have the final say, is all I'm saying.

So like the articles the guys posted, eventually the rug will get pulled and someone is going to be out a lot of money - I'm guessing the boomers who are about to retire are going to be S.O.L.

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5.7L RC Longbox, 4X4 SR5

IMHO, there is a line which, if crossed, on the price of fuel, may well be the motivating factor to reenergize this nation to find alternative fuel sources. I don't know what that price is, but I suspect we are getting very close. If it happens and we are successful (even though it will likely not happen quickly), the price of oil will plummet as it has many times in the past. Having spent 28 years with an oil company (ARCO), I find it interesting and believeable that many "experts" in the study of oil prices have publically stated that the price of oil based on true supply & demand should be in the $60-$70 range today. My 2 cents!

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2011 Tundra Limited Double Cab 4x4 5.7L Super White
Pioneer AVIC Z-120BT Nav Unit w/XM Satellite radio
ROSTRA Tailgate back-up camera
Key FOB Tailgate Lock (courtesy Toxarch design)
Firestone Air Bags
Power back sliding glass
Tinted glass
OEM fender flares, bedliner, step rails and door sill protectors
Slyvania zXe H11 halogen low beam and zXe 9005 high beam bulbs
LED footwell, courtesy, dome, cargo, third brake light, tail/brake, turn signal (front and rear), backup and license plate lights from V-LEDS.com
WeatherTech Floor Liners
UWS Black Powdercoat Low Profile Toolbox
DU-HA underseat storage unit
Tekonsha Prodigy P3 Brake Controller

Agreed. And the current price/barrel is what??? Last I heard which was a couple weeks ago was $130ish I think.

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07 DC SR5 Long Bed Desert Pyrite Mica, folding rear seat mod, Raptor step bars, OEM back-up camera, "iPod in the ashtray", Toytec 3" leveling kit

Down to a "measly" $124 today grimmkt..... maybe OPEC read my post, lol!

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2011 Tundra Limited Double Cab 4x4 5.7L Super White
Pioneer AVIC Z-120BT Nav Unit w/XM Satellite radio
ROSTRA Tailgate back-up camera
Key FOB Tailgate Lock (courtesy Toxarch design)
Firestone Air Bags
Power back sliding glass
Tinted glass
OEM fender flares, bedliner, step rails and door sill protectors
Slyvania zXe H11 halogen low beam and zXe 9005 high beam bulbs
LED footwell, courtesy, dome, cargo, third brake light, tail/brake, turn signal (front and rear), backup and license plate lights from V-LEDS.com
WeatherTech Floor Liners
UWS Black Powdercoat Low Profile Toolbox
DU-HA underseat storage unit
Tekonsha Prodigy P3 Brake Controller