It’s a theory. One that’s better explored here.
I’m curious about how this ties in to the housing story.
The U.S. housing bubble peaked in 2005-2006. That was before the 2007-2008 oil shock, but gas prices were trending very high in 2005-2006, as seen in historical prices. The collapse of the housing market may have been the canary in the coal mine.
That would explain something else that was always puzzling. Why did housing bubbles all over the world collapse around the same time? Oil prices went higher all around the world at the same time, which might explain the simultaneous popping of housing bubbles.
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Look a bit further back in history (not like a Beastie Boy though
) and you’ll find:
http://en.wikipedia.org/wiki/Commodity_Futures_Modernization_Act_of_2000 – the CFMA2000!
Yet another wonderful give-away to the Banksters compliments of Clinton (Glass-Steagall repeal anyone?).
See, you figure a law is passed and off you go taking advantage of things. But that doesn’t necessarily mean everything is “ready to go”. I could bore you with how a bill actually “becomes” the law (outside of Schoolhouse Rock) but it’s not important other than to realize things don’t happen overnight. Similar to how the PPACA of 2010 (Obamacare to you opponents) is now in its second year of existence and they’re still trying to figure out how to setup/manage these state-level public exchanges the law dictated.
So in the case of the CFMA2000 it took a while for the appropriate governing bodies to get their rules and procedures handed down from (I think) Federal Register and still some more time for the legal bodies (hired after they lobbied Congress – such a cynic aren’t I?) of our trading corporations to parse through them to see where advantageous positions could be staked out and money made from them.
Around 2005-2006 you get the first signs of the Banksters manipulating things (my term) and them dipping a little toe into the waters. That seems to go okay (“Hey! We made money AND our fixed income guys have got yet another idea to utlize!!!”) so they aim bigger and BOOM! 2008 comes around and before you can say “What’sabarrelofoilcostnow?” we’re at $150/bbl until things fall apart.
*shrug*
I don’t dare call myself cynical until I’ve tried to follow the money far enough but in this I can’t help but say we may be on the road to another manipulated peak.
Hey, someone’s got to make money when the Fed’s lending it at less than %0.25!!