Yesterday, I noted that President Barack Obama’s latest proposal to target so-called “oil speculators” with regulations and increased fines is yet just another way for him to cast blame instead of working towards policies that would increase supply, which is what most analysts say is causing uncertainity and thereby higher gas prices. It’s another gimmick, for sure, but the rhetoric may be effective since most voters don’t understand the basic economics of how the market works.
But the Washington Post is criticizing Obama’s “crackdown,” noting that his latest gimmick will do absolutely nothing to lower gas prices, leaving Americans with more empty promises and more failed leadership:
The White House insisted Tuesday that high volume and volatility in oil markets suggest that regulators need more tools to monitor and control them. But a senior administration official deflected questions about whether regulators have detected any hint of manipulation and would not give an example of the sort of rigging the president suspected regulators might find with more resources. The official instead repeatedly pointed to Enron — a scandal involving electricity, not oil, markets. So the argument boils down to: “Maybe the CFTC will find something, we don’t really know what.”