Hole in the Wall
Ventura Conflates Credit Crunch and Rising Oil Prices
RECEIVED Mon., July 28, 2008
Dear Editor,
Re: $4 a Gallon Redux [“Letters @ 3am”]: In the name of patting himself on the back, Michael Ventura conflates the credit crunch and rising oil prices. Either that or he is wallowing contentedly in a hell-in-a-handbasket scenario he thinks he foresaw. Kinda weird.
The credit crunch is a result of the housing crisis. Oddly, Mr. Ventura seems to be implying the housing situation is a result of gas prices and not subprime predatory-lending practices. Odd.
To debunk the role of speculation in rising oil prices, Ventura cites a report headed by the current U.S. Commodity Futures Trading Commission chairman, a member of the pro-deregulation Bush administration. In response, I can cite the man who wrote the CFTC deregulation policy, the former CFTC chairman who does blame deregulation and speculation. Ventura also cites T. Boone Pickens, who is pushing two alternate industries in which he is heavily invested, wind and natural gas. And in citing a Goldman Sachs analyst, Mr. Ventura might want to ask why someone in the financial industry (speculators) is in a better position to predict the price of oil than analysts in the energy industry. Lastly, Mr. Ventura might want to investigate why oil dropped $20/barrel in one week, coincident with U.S. calls for increased drilling and legislation against speculation, if prices are predominantly a function of global supply/demand.
Re: $4 a Gallon Redux [“Letters @ 3am”]: In the name of patting himself on the back, Michael Ventura conflates the credit crunch and rising oil prices. Either that or he is wallowing contentedly in a hell-in-a-handbasket scenario he thinks he foresaw. Kinda weird.
The credit crunch is a result of the housing crisis. Oddly, Mr. Ventura seems to be implying the housing situation is a result of gas prices and not subprime predatory-lending practices. Odd.
To debunk the role of speculation in rising oil prices, Ventura cites a report headed by the current U.S. Commodity Futures Trading Commission chairman, a member of the pro-deregulation Bush administration. In response, I can cite the man who wrote the CFTC deregulation policy, the former CFTC chairman who does blame deregulation and speculation. Ventura also cites T. Boone Pickens, who is pushing two alternate industries in which he is heavily invested, wind and natural gas. And in citing a Goldman Sachs analyst, Mr. Ventura might want to ask why someone in the financial industry (speculators) is in a better position to predict the price of oil than analysts in the energy industry. Lastly, Mr. Ventura might want to investigate why oil dropped $20/barrel in one week, coincident with U.S. calls for increased drilling and legislation against speculation, if prices are predominantly a function of global supply/demand.
Noel Gonzales