Oil price conspiracy? Top people think so.

Jim Cramer, a former hedge fund manager, Democratic activist, and currently in a new life as co-host of Kudlow and Cramer on CNBC is stating straight out that the price of oil is being manipulated by hedge funds with billions in capital driving prices higher every day. The main problem is that the "margin"---the amount of money you have to put up to trade one contract----is too low by at least two thirds making the trading of oil far too cheap. The margins are exactly the same as when oil traded at $20 and the NYMEX is making so much money they don't care.

So where is the CFTC? As usual with Bush appointees, sitting on their fat asses doing nothing. According to Cramer, the current margin per $50,000 contract is just $300, an insane invitation for speculation. The margins posted on the NYMEX website leave out margins for hedgers. Assuming Cramer's right, and he always is on facts, this means a margin play of 167 to one, an unheard of percent. Consider that beans trading at $5 requires $500 for hedgers who have serious position limits the margin play is 50 to one.

Something for you gurus to think about.

This is another example of Bush refusing to fire his appointees, but Kerry is too lame to point out what is happening.

BTW, Cramer as well as guests think Google is a short. These guys are total fuck ups and as I post this I find that Blogger is down again and I can't post this.