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I've been saying this is the cause of the spike in prices since the beginning of it! When the mortgage-backed securities market tanked, all of that investment capital went into the next-safest market - the commodities market! When that much money enters a market all at the same time, the prices skyrocket. It's economics 101.
It also translates to higher prices for corn, wheat, milk, OJ, etc, etc. Sound familiar?
I'm really glad that this kind of stuff is getting out there. Too many people believe this is a supply problem. That is only a small part of the problem, and nothing has changed on that front for years. The recent spike is a MARKET problem. We're not running out of oil, wheat, corn, etc. Speculators are driving the price up. It's the same dynamic as the housing market.
Do a google search of "commodities investment" and see how much has been written about the recent "boom." It seems to be the only segment that's doing well, and the rest of the economy is suffering for it. When it collapses, you won't be able to give away a barrel of oil, farmers will go broke, etc etc. It's the early 80s all over again.
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