The federal government may crack down on oil speculators, the people who hurt us all very badly by manipulating gas prices and giving the oil companies an excuse to artificially raise prices. That, of course, has greatly contributed to the brutal recession we are experiencing right now.
For more than three years, more than three years, I have been telling you that the oil companies are rigged, the markets are rigged, with supply and demand having little to do with what we pay at the gas pump or what the power companies charge us to heat or cool our homes. Now you'll remember, I was hammered for my analysis:
(BEGIN VIDEO CLIP)
MAC JOHNSON: But they're not speculators. They're future traders. What they are doing is sharing risk.
JOHN STOSSEL, CO-HOST, "20/20": You're allowed to speculate, and mommy government is not going to watch every move you make.
TOBIN SMITH: You're right about one thing. There is speculation in the markets. That's what makes the markets, Bill. It's this speculator who keeps the money flowing.
O'REILLY: Am I making any mistakes here on the oil? I think it's rigged. What do you think?
KARL ROVE: Well, this is one of the few moments where I may disagree with you.
O'REILLY: So you just answered my question that I'm right in my analysis that it doesn't have anything to do with supply and demand. It has to do with speculation.
UNIDENTIFIED MALE: It has everything to do with the fundamental…
NEIL CAVUTO: That is a strong economy.
CAVUTO: That is…
O'REILLY: We also have people manipulating the oil futures markets.
CAVUTO: We have no one manipulating.
JONATHAN HOENIG: I can't believe you didn't learn anything about economics, with all due respect, Bill, at Harvard.
(END VIDEO CLIP)
Well Wednesday, the front page headline in The Wall Street Journal is: Oil Speculators Under Fire. U.S. weighs more trading regulations as U.K., France seek international action.
Well, it's about time. The Bush administration did nothing to control the speculators, and that was a major reason why our economy crashed. Americans had to divert millions of dollars to pay the four bucks a gallon gas price, while ExxonMobil and the other oil companies made record-breaking profits. Yeah, the mortgage mess contributed to the recession, but the oil con was just as big a factor.
Now, many of you watch "The Factor" because you know we'll tell you the truth even when it's unpopular. I received thousands of e-mails calling me an idiot, a madman, even a communist for telling the truth about the rigged oil industry. But now the truth is coming out, and you heard it here first.
And that's "The Memo."
Pinheads & Patriots
As you may know, we are big green people here. We like the nature thing, communing with wildlife, that kind of deal. So when we saw actress Halle Berry up close and personal with Shamu the killer whale at Sea World in San Diego, we approved of the interaction. Ms. Berry is a patriot and so is Shamu.
On the pinhead front, sometimes you can go overboard with the nature deal. A new trend called "mutton busting" puts kids on top of sheep. Pretty dopey, isn't it? But the kids say it's a lot of fun. They like it, mutton busting. However, the sheep are not very thrilled with this at all. Pinheaded? You make the call.