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Speculation

The Issue Europe Won’t Face

Robert KuttnerMay 24, 2012
(Flickr/Davide Olivia)

 

Europe’s leaders emerged far apart at their summit dinner in Brussels Wednesday night. They could not even agree on relatively easy measures to contain the escalating crisis, such as Eurobonds or a greater role for the European Central Bank (ECB).

But at the core of the crisis is an issue that Europe’s leaders are even more reluctant to take on—the ease with which hedge funds and other speculators can drive a small economy into the ground.

Where Are the Protesters?

Aswini AnburajanApr 11, 2011

The Chicago Tribune reported today that gas is going up to $5 a gallon in Chicago. Nationally, gas prices have increased by 19 cents over the past three weeks. Conventional wisdom would argue that because there's conflict in the Middle East -- in particular, Libya -- we'll have higher oil prices. But given that supply has not been disrupted, one must point to another culprit: speculation.

An article on Bnet.com quotes the following statistic regarding oil speculation:

Curbing Speculation

Aswini AnburajanMar 09, 2011

Chris Hayes writes in The Nation that gas prices might be a defining factor in Obama's re-election. Anyone doubting that just needs to cast their memory back to 2008 when the call for a repeal of the gas tax became a signature issue for John McCain in tackling the nation's gas woes.

Hayes points out that then, as now, speculation played a huge role:

Annals of Efficient Markets.

Tim FernholzJan 20, 2010

Via Matt Yglesias, we learn that "old GM," the collection of properties, contracts and liabilities abandoned by General Motors during its bankruptcy procedure, has a stock price of 77 cents a share and a market value of nearly $500 million. All this despite the fact that the company, the SEC and others have made extremely clear that the shares are worthless. Many of the people who own stock in the company are speculators, whether on present value or former short-seller, some are just confused.