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Bank Bailouts oil speculation and how Obama might get lucky

Morgan Stanley as but one example, simply took off its bankers hat, and donned a speculator’s hat putting down some $80,000,000 at today’s prices to buy 2 million barrels of oil. No, they didn’t store the oil in their bank vaults. They went out and chartered a supertanker, the “Argenta” at some $68,000 a day, and they just have it sitting out there floating at anchor day after day. And that doesn’t include finance charges (But hey! Finance costs? That’s cheap if you have a friendly government agency to fork over the loot), insurance costs, and all those other ancillary costs attendant to it.

My bold This is where Morgan Stanley is spending its bailout money? They bought at today’s prices plus $68,000 a day and finance Charges.
Does anyone know how much finance charges are?
Normally gas goes up in the summertime so this sounds like a safe bet.
Except that oil inventories are up as demand for oil collapses along with the economy.
This despite Israel’s little war on the Palestinians fear of a larger Middle East does tend to drive oil prices up.
This despite the fact that I am sure that Morgan Stanley is not the only speculator sitting on an oil tanker waiting for prices to go up.
But what if prices don’t go up?
Morgan Stanley will lose its shirt then. Morgan Stanley will ask for more bank bailout money. The homeowner loans that Morgan Stanley was suppose to refinance at lower rates to help people losing their homes FORGET ABOUT IT.
The only good thing about this is that Morgan Stanley is betting that Obama will fix the economy by summer so much that they can make a profit off this oil tanker.
Now then

In late October, Paulson forced the nation’s nine largest banks to accept a total of $125 billion, regardless of their health. San Francisco’s Wells Fargo got $25 billion in that first round. Citigroup and Bank of America later came back for billions more.

Ok here is a little detail that I cannot believe that I missed Paulson forced the nation’s 9 largest banks to accept $125 billion whether they needed the cash or not.
Why? well Paulson was worried that people would pull their money from the bad banks…and put them in good banks?
Isn’t that how Capitalism works? Bwahahaha!
Anyway Obama should ask the good banks for the cash back so that he has more money for future bank bailouts or the Stimulus package.
We can Nationalize the Bad banks as consumers pull their cash out and get the banks at a bargain price.
After all how is Bush giving the banks money no strings attached any better than Nationalization? Either way the Banks get cash they need only this way the Government has a say in what the banks do with the money.
In other words no buying oil tankers full of oil and letting them sit hoping and praying that the price of oil goes up
The Freemarket can manage the cash Better than the Government?
Nope! the banks are broke and can’t borrow cash. The government is broke but can still borrow cash.
Conclusion the Government manages its money better than the banks despite what the Chicago School Economic Zombies chant endlessly.
I think if Obama can’t save the economy by summertime and increase demand for gas Obama will get real lucky.
All the oil speculators waiting for oil prices to go up will be forced to sell at a small profit, Break even or a loss.
That should drive the price of gas down.
Lower gas prices something we have not seen at all under Bush does help the economy.
A 10 gallon tank of gas a week at $2.00 a gallon vs $2.50 a gallon puts an extra $5 a week into consumers pockets.
That does not sound like much until you multiply that by how many millions of drivers who fill up once a week.
Much of that extra savings will be spent in our economy then rather than going overseas to Ossama.

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A jack of all trades master of none a pot felon who can't get a job worthy of his talents so I write for free.