The historic swings in oil prices last year were the result of financial speculation from Wall Street and not supply and demand. Steve Kroft investigates.
Old 60 minutes segments are the best. Wish they showed these in school when I was a kid.
@kiddydevil3
4 жыл бұрын
See you in another 10 years guys.
@vijaygautam1406
5 жыл бұрын
What happened with Crude Oil in 2008 was a classic case of a bubble. As rightly pointed out early in this documentary, much more speculators were making trades in Oil futures, as compared to the companies that actually were the end users of Crude Oil. In 2007, US Investment banks had taken a heavy beating when they were asked by SEC to mark their loan portfolio to the market. In the process, it was revealed that the market value of loans were far lower in value than their book value, as many sub-prime borrowers defaulted, thus resulting in enormous losses to these Investment Banks, who had bought out these loans from the lending banks earlier, and had bundled them as CDOs. These Investment Banks than started speculating in Oil futures, to cover up their losses. Many of them even started buying and storing the black gold, in order to limit the supply and thus jack up the price (there was a market news about Morgan Stanley). I remember Crude Oil racing up very fast during the second quarter of 2008. It touched $147 just before the US Independence Day of July 4, 2008. As the definition of bubble, high volatility at high price, the higher Crude went, higher was the price acceleration and volatility. However, within a few months, Lehman Brothers went bankrupt in Sep-2008, thus triggering a full-blown crisis. The oil raced down rapidly, had a free fall sort of, and was languishing at $32 (a loss of 80% in the market price) by the end of the year!
@kskizzle7
15 жыл бұрын
I had to watch this for my tech class. Hello anyone who is watching this. Shoutout to Tucson High lol
@TYX91101
15 жыл бұрын
Oil, like the stock market, is now enjoying a corrective bounce. You'll see prices below 10 bucks a barrel before it's over.
@StowAlex
13 жыл бұрын
~ WHY~ Why do we(USA) remain reliant on foreign oil? Why do we NOT drill on our own land(Alaska, Texas & New Mexico) and obtain our own supply of oil? WTF? Its like, I have my own product here ~~~ BUT I'm gonna PAY MORE & buy this foreign product so THEY can MAKE all the money, CREATE all the jobs and GAIN all the benifits.
@allgoo19
15 жыл бұрын
De-regulation,, de-regulation,,, de-regulation,,,, Everything comes down to de-regulation. Have we seen Ron Paul lately? What he says about this now?
@ecokid1991
15 жыл бұрын
ya. for almost 3 decades of de-regulating Wall Street really helped the American middle class. causing the WORST RECESSION since the 1930s.
@StowAlex
12 жыл бұрын
@io007a ~ U.S. Department of the Interior estimate the total volume of undiscovered, technically recoverable oil in the United States to be roughly 134 billion barrels. ~ Minerals Management Service estimates the Federal Outer Continental Shelf contains between 66.6 and 115.1 billion barrels of undiscovered technically recoverable crude oil, with a mean estimate of 85.9 billion barrels SO your theory of "US only has alil bit of oil in those areas" is waaay off.
@comfortlee1418
3 жыл бұрын
See you in 2022 guys
@iRHAPEzombiies
12 жыл бұрын
Does The Government think we strip for our jobs? We're not that rich, we mostly have part-time jobs.
@jfausset
5 жыл бұрын
Financialization ruins everything.
@kurtgodel9726
5 жыл бұрын
You hit the nail on the head there buddy!!
@kenryan4496
2 жыл бұрын
And 12 yrs have passed but nothing is changed.
@cgsonic1968
Жыл бұрын
Why does this look like it was made in the 1980's ?
@terencewinters2154
4 жыл бұрын
Puts and calls mean speculators who collude can make money on it going up or down.
@TheBandit7613
5 жыл бұрын
They did the same thing speculating in food.
@radiodj1520
12 жыл бұрын
I Believe This Was A Video Clip Of CBS News' 60 Minutes' Report On The Price Of Oil On Sunday Evening, January 11, 2009.
@io007a
12 жыл бұрын
@StowAlex man us has a little bit of oil in those areas but don't you think that in 20 years it will need that oil for the basic needs military civil service etc ,say thank you to the goverment that can print money otherwise you would pay double like in europe ,the answer is regulating the world future markets not only in US .
@terencewinters2154
4 жыл бұрын
4.09 for milk 4.11 for gas .
@Dakatari
3 жыл бұрын
All the crooks look and act the same
@terencewinters2154
4 жыл бұрын
So weissman essentially spread the enron algorithm contagion , by destroying enron , others picked it up and used it .
@terencewinters2154
4 жыл бұрын
The economy and the average consumer is the loser because every product that depends on oil for delivery have to elevate their price and that's from soup to nuts.
@WackoX1337
13 жыл бұрын
Really America? come to Europe and you have to pay $10 a gallon.
@jzk2020
11 жыл бұрын
That dude at 07:45 kinda sounds like obama aarrhh :) Listen... close ur eyes and listen carefully.
@shrutighosh2323
4 жыл бұрын
Either the comments are from a day ago or from 10 years ago...
@Elidoransgar
15 жыл бұрын
Thank god we're giving all these Wall Street millionares trillions of our dollars to keep livin' large! What would we do without them, y'all?
@piojeet
2 жыл бұрын
Damn 90% of these comments are decade old....
@wayneparker7236
5 жыл бұрын
I know nothing about wall street. Why can't we get rid of wall street and investors invest with the companies themselves. Wouldn't that stop a lot of descripincies and maintain supply and demand. Get rid of the fat cats and make them earn a real living.
@Amahrixlol
12 жыл бұрын
so u want us to cap oil at a certain price....?
@OwenPrescott
4 жыл бұрын
This is coming again to a town near you :)
@io007a
12 жыл бұрын
@mphello man solar or wind energy is made with oil :)) those sources of energy are bery little used but even if you make them 10 times bigger it will be only a tiny fraction of the total energy demand ,there is no substitute for oil at this time ,actualy the speculators are doing us a favor by rising the price of oil prematurely over the real demand it makes bussineses think about means to replace oil ,at the same time speculation works on both sides it can go up but it can also go down
@flagship21
15 жыл бұрын
why aren't heads flying ???
@io007a
12 жыл бұрын
@StowAlex and you know how much you guys consume every year?7 billion barrels those resources can only last you 20 years with today consumpton but remember in 20 years us will have 400 mil people consuming 10 billion barrels a year so sorry to say but its a little bit of oil comparing to the needs remember to construct an infrastructure post oil you need oil to invest aside oil to consume in the present .
@Klaudiosable
12 жыл бұрын
I have a feeling the electric car isn't coming
@grospipo20
4 жыл бұрын
Klaudios hello from the future... I have to say I am optimistic about electric car
@white41990
15 жыл бұрын
get ready for round two
@wudupfammm8555
4 жыл бұрын
some motivational trading video said now with algos & errrythang u got a better chance of winning the olympics than making a profit on forex
@oranges9893
5 жыл бұрын
Griftopia brought me here
@industrialhemprocks
14 жыл бұрын
WHO CARES lets start using industrial hemp!!!!
@gtoptn
13 жыл бұрын
@WackoX1337 r u kidding
@hint0122
11 жыл бұрын
its fake
@duncanbleak3819
2 жыл бұрын
Surprise, surprise!
@lakecrab
12 жыл бұрын
The auctioneers gavel will be tolling for all the Bernie Madoffs. It tolls for thee.
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