Democratic Energy Bill Defeated; Republicans Show Some Stones
Harry Reid’s attempt to interfere in the commodities exchanges failed this morning along mostly partisan lines. Democrats are blaming high gasoline prices on “excessive” speculation in oil and gas futures. This is typical of Democrats, who would rather blame hedge funds (framed as “fat cats”, but who serve an important market purpose) than deal with the actual problem.
Republicans managed to hold to their promise to let no legislation move without provisions for increasing domestic production. It’s also nice that they opposed the anti-speculation bill, something I would hope they would have done anyway. More regulation of hedging activity, especially regulation like this which is aimed at secondary effects rather than actual misconduct, just drives investment overseas. Congress didn’t learn enough from SOX.