Price of oil falls, U.S. SEC to investigate short-sellers

by Kurt Schulzke on July 22, 2008

Well, not really. But you’d think, based on the SEC’s virulent reaction to the decline in banking stocks, they or the Treasury or DOJ or somebody would act to protect oil investors, as well.  These poor souls lost another $4 per barrel on Tuesday. But maybe not all investors are created equal after all. If you invest in oil and get caught in the market whipsaw, you deserve to lose money. Or maybe if you short-sell oil futures, you deserve to make it.  Either way, the government’s response to the crisis in mortgage banking seems dysfunctionally two-faced.