Oil Market 'Transparency' is Bought by Wall Street Oligarchs

January 1st, 2014
in econ_news

by Larry Doyle, Sense on Cents

Information is everything. Unparalleled access to information and the hoarding of the data collected are cornerstone principles of an economic system that is defined as an oligopoly.

How does this work? Rather than my writing, let's take a quick 2-minute view of what is going on within the oil markets in the video after the Read more >> break.

oil-storage-cushing-okla-380x170

Follow up:

The following video (less than two minutes in length) is from The Wall Street Journal.

Do you think an individual or smaller organization trying to trade the oil markets stands a chance against this sort of activity? Certainly not.

But I can hear those out there who would defend this sort of surveillance and information gathering as part and parcel of free market capitalism. Let's take it a step further, though. As highlighted in the WSJ's commentary,

"Is the information so valuable, and so hard to get, that only a few people can get it? That creates a barrier to entry."

What is the knock-on effect when there are enormous barriers to entry? Collusive behaviors and periodic bouts of market manipulation.

We have experienced all too many examples of just such activities across a wide array of consumer and investment markets. Throw in a strong helping of regulatory capture if not outright corruption and what do we have?

Wall Street's impact on the US economy circa 2013.

Navigate accordingly.

Editor's note: Palgrave Macmillan and Econintersect have partnered to offer a drawing for a free copy of Larry Doyle's new book, In Bed With Wall Street:  The Conspiracy Crippling Our Global Economy.

Click here for details and entry.

 










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.

















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved