Timmy ElsewhereOctober 19, 2009 Tim WorstallTimmy Elsewhere2 CommentsAt the ASI. Idiots misunderstanding speculation again. Yes, looking at you Tom Bower. previousMaddy\’s doing political philosophynextEh? 2 thoughts on “Timmy Elsewhere” gene berman October 19, 2009 at 11:34 pm No need to deride or denigrate the losers, Tim–they’re part of the process, too; as a matter of fact, where real speculation is concerned, there are few who do not make losses along with profits. Too many losses and they’ll lose the ability to engage any longer in speculation and make way for someone fitter (or flusher) for the fray. One other benefit provided by a rise in prices you might have mentioned is that, with each rise, previously unextractable (profitably) resources now become profitable; in other words, those quantities are now additions to “proven reserves.” In the management of extractive industries, there may always arise conflicts over whether to “work” the easiest to extract, producing larger ROI in the present (and enhancing dividend payments) or the most difficult, maintaining more modest payout but preserving the greatest store of wealth into the future. There’s no answer which is “correct”: it’s all up to the unfolding of the always-uncertain future. Matthew October 20, 2009 at 4:48 pm How exactly do speculators in oil drive prices higher? Aren’t they simply buying and selling futures contracts. It seems likely they do, but it’d be nice to see the mechanism clearly explained by experts. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.