I found this on the LA Times Blog. A succient explanation.
RIYADH, Saudi Arabia (AP) - Saudi Arabia says it will call for a meeting of oil producing countries and consumers to discuss soaring oil prices and work to prevent unjustified rise in prices.
Information and Culture Minister Iyad Madani says the kingdom will work with OPEC to "guarantee the availability of oil supplies now and in the future."
In a statement following the weekly Cabinet meeting, Monday, the minister said Saudi Arabia will also work to control "unwarranted and unnatural" price hikes.
He said that the current price of oil is unjustified."
Did you get that last line? As I've said before, this is the end result of the Fed's 180 day loans to "investment banks" outside their normal lending loop. Now we have the major Wall St' investment houses using loans funded by taxpayer dollars inflating yet another speculative bubble based on their own predictions.
It's hard to say what frustrates me more; the blatant market manipulation or the sublime stupidity of the herd of "investors" who believe it. Either way this last round of unmitigated greed/insanity will likely be the straw that finally breaks the economy's back.
Posted by: Michael Snyder | June 09, 2008 at 10:09 AM