Tuesday, June 3, 2008

Who's to blame for high oil prices, take two

There is a new candidate for who to blame for high oil (and other commodity) prices--institutional investors.

As reported in the FT, George Soros is expected to tell Congress that:

rising oil prices are the result of a number of fundamental changes and factors in the market, but that the relatively recent ability of investment institutions to invest in the futures market through index funds is exaggerating price rises and creating an oil market bubble.

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