Before you read me, please read Tom Kloza, who is a real authority:
CNBC and a Crude Discussion – talking fast and saying nothing
Image by DayLove via Flickr
Have you ever noticed that the anchors and analysts on CNBC talk very fast. Especially the ‘money bunnies’, Maria Bartiromo and Erin Burnett, they talk really fast. One reason for this rapid repartee is that they have no idea what they are talking about, and they don’t want you to notice.
While this can be forgiven when applied to a financial news anchor, it is unforgivable when dished up by a sector analyst. Specifically, the energy sector experts on CNBC should be beaten with a pipe.
A horrible lie is being circulated (via CNBC in particular), stating that the current price of crude oil could be due to any number of factors; it is just not known precisely what is causing the constant rise in the price of oil. Some analysts featured by CNBC say demand is the cause, some say speculation; they are both correct, but the role that speculation via crude futures trading plays in the price of crude is being deliberately hidden from public discussion, until now. I will enlighten you.
While there is no doubt that demand has played its part, we are seeing a new dynamic in the old commodity trader’s bag of dirty tricks – this is the trading of ‘dry contracts’.
Read on, babes, you are being had. Continue reading