The more I read about Goldman Sach, the more I see them as an evil company - the type of company that gives capitalism a bad name. Heres a story about how GS and some of the oil companies are manipulating oil futures markets
GS is making these "round trip" trades without actual oil ever exchanging hands. GS will sell an oil contract to BP and BP will sell the same contract back to GS. The price goes up, other traders see the high volume of trades and jump in, driving the price even higher.
Right now the world demand for oil is very low. Oil tankers are sitting full with no place to pump their cargo, yet the price still keeps going up.
The point of the futures markets was for companies to hedge against future prices increases or drops. Now an unregulated ICE outside the US has become a dark pool where insiders can drive up the price of oil to pad their outrageous bonuses.
Will the government investigate this? I doubt it. Paulson was from GS as well as Geithner. Sometimes, I feel like a crazy conspiracy theorist.
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